0000318154-21-000010 | 10-K | XBRL Viewer

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Cover page - USD ($)	12 Months Ended
Cover page - USD ($)	Dec. 31, 2020	Feb. 03, 2021	Jun. 30, 2020
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2020
Document Transition Report	false
Entity File Number	001-37702
Entity Registrant Name	Amgen Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-3540776
Entity Address, Address Line One	One Amgen Center Drive
Entity Address, City or Town	Thousand Oaks
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	91320-1799
City Area Code	805
Local Phone Number	447-1000
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 138,056,968,288
Entity Common Stock, Shares Outstanding		577,566,383
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE Specified portions of the registrant’s Proxy Statement with respect to the 2021 Annual Meeting of Stockholders to be held May 18, 2021, are incorporated by reference into Part III of this annual report.
Entity Central Index Key	0000318154
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Common Stock \| The NASDAQ Global Select Market
Entity Information [Line Items]
Title of 12(b) Security	Common stock, $0.0001 par value
Trading Symbol	AMGN
Security Exchange Name	NASDAQ
1.250% Senior Notes Due 2022 \| New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	1.250% Senior Notes Due 2022
Trading Symbol	AMGN22
Security Exchange Name	NASDAQ
2.00% Senior Notes Due 2026 \| New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	2.00% Senior Notes Due 2026
Trading Symbol	AMGN26
Security Exchange Name	NASDAQ

Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenues:
Product sales	$ 25,424	$ 23,362	$ 23,747
Total revenues	25,424	23,362	23,747
Operating expenses:
Cost of sales	6,159	4,356	4,101
Research and development	4,207	4,116	3,737
Selling, general and administrative	5,730	5,150	5,332
Other	189	66	314
Total operating expenses	16,285	13,688	13,484
Operating income	9,139	9,674	10,263
Interest expense, net	1,262	1,289	1,392
Interest and other income, net	256	753	674
Income before income taxes	8,133	9,138	9,545
Provision for income taxes	869	1,296	1,151
Net income	$ 7,264	$ 7,842	$ 8,394
Earnings per share:
Basic (in usd per share)	$ 12.40	$ 12.96	$ 12.70
Diluted (in usd per share)	$ 12.31	$ 12.88	$ 12.62
Shares used in the calculation of earnings per share:
Basic (in shares)	586	605	661
Diluted (in shares)	590	609	665
Product sales [Member]
Revenues:
Product sales	$ 24,240	$ 22,204	$ 22,533
Other [Member]
Revenues:
Product sales	1,184	1,158	1,214
Other revenues	$ 1,184	$ 1,158	$ 1,214

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 7,264	$ 7,842	$ 8,394
Other comprehensive (loss) income, net of reclassification adjustments and taxes:
Gains (losses) on foreign currency translation	9	(48)	(141)
(Losses) gains on cash flow hedges	(438)	(66)	247
(Losses) gains on available-for-sale securities	(21)	360	(185)
Other losses	(7)	(5)	(2)
Other comprehensive (loss) income, net of taxes	(457)	241	(81)
Comprehensive income	$ 6,807	$ 8,083	$ 8,313

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Consolidated Balance Sheets - USD ($) shares in Millions, $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 6,266	$ 6,037
Marketable securities	4,381	2,874
Trade receivables, net	4,525	4,057
Inventories	3,893	3,584
Other current assets	2,079	1,888
Total current assets	21,144	18,440
Property, plant and equipment, net	4,889	4,928
Intangible assets, net	16,587	19,413
Goodwill	14,689	14,703
Other assets	5,639	2,223
Total assets	62,948	59,707
Current liabilities:
Accounts payable	1,421	1,371
Accrued liabilities	10,141	8,511
Current portion of long-term debt	91	2,953
Total current liabilities	11,653	12,835
Long-term debt	32,895	26,950
Long-term tax liabilities	6,968	8,037
Other noncurrent liabilities	2,023	2,212
Contingencies and commitments
Common Stock, Shares Authorized	2,750.0	2,750.0
Common Stock, Shares, Outstanding	578.3	591.4
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Stockholders’ equity:
Common stock and additional paid-in capital; $0.0001 par value per share; 2,750.0 shares authorized; outstanding— 578.3 shares in 2020 and 591.4 shares in 2019	$ 31,802	$ 31,531
Accumulated deficit	(21,408)	(21,330)
Accumulated other comprehensive loss	(985)	(528)
Total stockholders’ equity	9,409	9,673
Total liabilities and stockholders’ equity	$ 62,948	$ 59,707

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions	Dec. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Common stock and additional paid-in capital, par value (in usd per share)	$ 0.0001	$ 0.0001
Common stock and additional paid-in capital, shares authorized	2,750.0	2,750.0
Common stock and additional paid-in capital, shares outstanding	578.3	591.4

Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment [Member]	Number of shares of common stock	Common stock and additional paid-in capital [Member]	Accumulated deficit [Member]	Accumulated deficit [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Accumulated other comprehensive loss [Member]	Accumulated other comprehensive loss [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]
Beginning Balance, Shares at Dec. 31, 2017			722.2
Beginning Balance at Dec. 31, 2017	$ 25,241	$ 29		$ 30,992	$ (5,072)	$ 38	$ (679)	$ (9)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	8,394				8,394
Other comprehensive income (loss), net of tax	(81)						(81)
Dividends declared on common stock	(3,482)				(3,482)
Issuance of common stock in connection with the Company’s equity award programs, Shares			1.9
Issuance of common stock in connection with the Company’s equity award programs	56			56
Stock-based compensation expense	327			327
Tax impact related to employee stock-based compensation expense	(129)			(129)
Repurchases of common stock, Shares			(94.5)
Repurchases of common stock	(17,855)				(17,855)
Ending Balance, Shares at Dec. 31, 2018			629.6
Ending Balance at Dec. 31, 2018	12,500			31,246	(17,977)		(769)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	7,842				7,842
Other comprehensive income (loss), net of tax	241						241
Dividends declared on common stock	(3,555)				(3,555)
Issuance of common stock in connection with the Company’s equity award programs, Shares			2.0
Issuance of common stock in connection with the Company’s equity award programs	97			97
Stock-based compensation expense	323			323
Tax impact related to employee stock-based compensation expense	(135)			(135)
Repurchases of common stock, Shares			(40.2)
Repurchases of common stock	$ (7,640)				(7,640)
Ending Balance, Shares at Dec. 31, 2019	591.4		591.4
Ending Balance at Dec. 31, 2019	$ 9,673	$ (2)		31,531	(21,330)	$ (2)	(528)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	7,264				7,264
Other comprehensive income (loss), net of tax	(457)						(457)
Dividends declared on common stock	(3,843)				(3,843)
Issuance of common stock in connection with the Company’s equity award programs, Shares			2.1
Issuance of common stock in connection with the Company’s equity award programs	91			91
Stock-based compensation expense	349			349
Tax impact related to employee stock-based compensation expense	(169)			(169)
Repurchases of common stock, Shares			(15.2)
Repurchases of common stock	$ (3,497)				(3,497)
Ending Balance, Shares at Dec. 31, 2020	578.3		578.3
Ending Balance at Dec. 31, 2020	$ 9,409			$ 31,802	$ (21,408)		$ (985)

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares		12 Months Ended
	Dec. 16, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Stockholders' Equity [Abstract]
Common stock, dividends declared per share (in usd per share)	$ 1.76	$ 6.56	$ 5.95	$ 5.41

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income	$ 7,264	$ 7,842	$ 8,394
Depreciation, amortization and other	3,601	2,206	1,946
Stock-based compensation expense	330	308	311
Deferred income taxes	(287)	(289)	(363)
Other items, net	(195)	(186)	386
Changes in operating assets and liabilities, net of acquisitions:
Trade receivables, net	(427)	(504)	(378)
Inventories	(215)	(66)	(3)
Other assets	129	10	35
Accounts payable	45	164	(143)
Accrued income taxes, net	(249)	(585)	(361)
Long-term tax liabilities	(482)	(146)	258
Other liabilities	983	396	1,214
Net cash provided by operating activities	10,497	9,150	11,296
Cash flows from investing activities:
Purchases of marketable securities	(8,477)	(9,394)	(18,741)
Proceeds from sales of marketable securities	2,597	8,842	28,356
Proceeds from maturities of marketable securities	4,381	20,548	5,412
Purchases of property, plant and equipment	(608)	(618)	(738)
Cash paid for acquisitions, net of cash acquired	0	(13,617)	195
Payments to Acquire Equity Method Investments	(3,219)	(24)	(40)
Other	(75)	(28)	(105)
Net cash (used in) provided by investing activities	(5,401)	5,709	14,339
Cash flows from financing activities:
Net proceeds from issuance of debt	8,914	0	0
Repayment of debt	(6,450)	(4,514)	(1,121)
Repurchases of common stock	(3,486)	(7,702)	(17,794)
Dividends paid	(3,755)	(3,509)	(3,507)
Other	(90)	(42)	(68)
Net cash used in financing activities	(4,867)	(15,767)	(22,490)
Increase (decrease) in cash and cash equivalents	229	(908)	3,145
Cash and cash equivalents at beginning of year	6,037	6,945	3,800
Cash and cash equivalents at end of year	$ 6,266	$ 6,037	$ 6,945

Summary of significant accounting policies	12 Months Ended
Summary of significant accounting policies	Dec. 31, 2020
Accounting Policies [Abstract]
Summary of significant accounting policies	Summary of significant accounting policies Business Amgen Inc. (including its subsidiaries, referred to as “Amgen,” “the Company,” “we,” “our” or “us”) is a global biotechnology pioneer that discovers, develops, manufactures and delivers innovative human therapeutics. We operate in one business segment: human therapeutics. Principles of consolidation The consolidated financial statements include the accounts of Amgen as well as its majority-owned subsidiaries. We do not have any significant interests in any variable interest entities. All material intercompany transactions and balances have been eliminated in consolidation. Use of estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates. Revenues Product sales and sales deductions Revenue from product sales is recognized upon transfer of control of a product to a customer, generally upon delivery, based on an amount that reflects the consideration to which we expect to be entitled, net of accruals for estimated rebates, wholesaler chargebacks, discounts and other deductions (collectively, sales deductions) and returns established at the time of sale. We analyze the adequacy of our accruals for sales deductions quarterly. Amounts accrued for sales deductions are adjusted when trends or significant events indicate that an adjustment is appropriate. Accruals are also adjusted to reflect actual results. Accruals for sales deductions are based primarily on estimates of the amounts earned or to be claimed on the related sales. These estimates take into consideration current contractual and statutory requirements, specific known market events and trends, internal and external historical data and forecasted customer buying patterns. Sales deductions are substantially product specific and therefore, for any given period, can be affected by the mix of products sold. Included in sales deductions are immaterial net adjustments related to prior-period sales due to changes in estimates. Historically, such amounts have represented less than 1% of the aggregate sales deductions charged against product sales. Returns are estimated through comparison of historical return data to their related sales on a production lot basis. Historical rates of return are determined for each product and are adjusted for known or expected changes in the marketplace specific to each product, when appropriate. Historically, sales return provisions have amounted to less than 1% of gross product sales. Changes in estimates for prior-period sales return provisions have historically been immaterial. Our payment terms vary by types and locations of customers and the products or services offered. Payment terms differ by jurisdiction and customer, but payment is generally required in a term ranging from 30 to 120 days from date of shipment or satisfaction of the performance obligation. For certain products or services and certain customer types, we may require payment before products are delivered or services are rendered to customers. Indirect taxes collected from customers and remitted to government authorities and that are related to sales of the Company’s products, primarily in Europe, are excluded from revenues. As a practical expedient, sales commissions are expensed when incurred because the amortization period would have been one year or less. These costs are recorded in Selling, general and administrative (SG&A) expense in the Consolidated Statements of Income. Other revenues Other revenues consist primarily of royalty income and corporate partner revenues. Royalties from licensees are based on third-party sales of licensed products and are recorded when the related third-party product sale occurs. Royalty income is estimated based on historical and forecasted sales trends. Corporate partner revenues are composed mainly of license fees and milestones earned and our share of commercial profits generated from collaborations. See Arrangements with multiple-performance obligations, discussed below. Arrangements with multiple-performance obligations From time to time, we enter into arrangements for the research and development (R&D), manufacture and/or commercialization of products and product candidates. Such arrangements may require us to deliver various rights, services and/or goods, including intellectual property rights/licenses, R&D services, manufacturing services and/or commercialization services. The underlying terms of these arrangements generally provide for consideration to Amgen in the form of nonrefundable, upfront license fees; development and commercial performance milestone payments; royalty payments; and/or profit sharing. In arrangements involving more than one performance obligation, each required performance obligation is evaluated to determine whether it qualifies as a distinct performance obligation based on whether (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available and (ii) the good or service is separately identifiable from other promises in the contract. The consideration under the arrangement is then allocated to each separate distinct performance obligation based on its respective relative stand-alone selling price. The estimated selling price of each deliverable reflects our best estimate of what the selling price would be if the deliverable was regularly sold by us on a stand-alone basis or by using an adjusted market assessment approach if selling price on a stand-alone basis is not available. The consideration allocated to each distinct performance obligation is recognized as revenue when control of the related goods or services is transferred. Consideration associated with at-risk substantive performance milestones is recognized as revenue when it is probable that a significant reversal of the cumulative revenue recognized will not occur. We utilize the sales- and usage-based royalty exception in arrangements that resulted from the license of intellectual property, recognizing revenues generated from royalties or profit sharing as the underlying sales occur. Research and development costs R&D costs are expensed as incurred and primarily include salaries, benefits and other staff-related costs; facilities and overhead costs; clinical trial and related clinical manufacturing costs; contract services and other outside costs; information systems’ costs; and amortization of acquired technology used in R&D with alternative future uses. R&D expenses also include costs and cost recoveries associated with third-party R&D arrangements, including upfront fees and milestones paid to third parties in connection with technologies that had not reached technological feasibility and did not have an alternative future use. Net payment or reimbursement of R&D costs is recognized when the obligations are incurred or as we become entitled to the cost recovery. See Note 8, Collaborations. Selling, general and administrative costs SG&A costs are primarily composed of salaries, benefits and other staff-related costs associated with sales and marketing, finance, legal and other administrative personnel; facilities and overhead costs; outside marketing, advertising and legal expenses; the U.S. healthcare reform federal excise fee on Branded Prescription Pharmaceutical Manufacturers and Importers; and other general and administrative costs. Advertising costs are expensed as incurred and were $962 million, $789 million and $674 million during the years ended December 31, 2020, 2019 and 2018, respectively. SG&A expenses also include costs and cost recoveries associated with marketing and promotion efforts under certain collaborative arrangements. Net payment or reimbursement of SG&A costs is recognized when the obligations are incurred or we become entitled to the cost recovery. See Note 8, Collaborations. Leases Adoption of new lease standard In February 2016, the Financial Accounting Standards Board (FASB) issued a new accounting standard that amends the guidance for the accounting and disclosure of leases. This new standard requires that lessees recognize the assets and liabilities that arise from leases on the balance sheet, including leases classified as operating leases, and that they disclose qualitative and quantitative information about leasing arrangements. The FASB subsequently issued additional amendments to address issues arising from the implementation of the new lease standard. We adopted this standard as of January 1, 2019, using the modified-retrospective method, which provides a method for recording existing leases at adoption. We used the adoption date as our date of initial application, and thus, comparative-period financial information is not presented for periods prior to the adoption date. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed us to carry forward the historical lease classification. Adoption of the new standard resulted in total lease liabilities of $510 million and right-of-use (ROU) assets of $439 million as of January 1, 2019. The difference between the initial lease liabilities and the ROU assets is primarily related to previously existing lease liabilities. The standard did not materially impact our Consolidated Statements of Income and had no impact on our Consolidated Statements of Cash Flows. Our accounting policies under the new standard are described below. See Note 13, Leases. Lease recognition At inception of a contract, we determine whether an arrangement is or contains a lease. For all leases, we determine the classification as either operating or financing. Operating leases are included in Other assets, Accrued liabilities and Other noncurrent liabilities in our Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments under the lease. Lease recognition occurs at the commencement date, and lease liability amounts are based on the present value of lease payments made during the lease term. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Because most of our leases do not provide information to determine an implicit interest rate, we use our incremental borrowing rate in determining the present value of lease payments. ROU assets also include any lease payments made prior to the commencement date less lease incentives received. Operating lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with both lease and nonlease components, which are generally accounted for together as a single lease component. In addition, for certain vehicle and equipment leases, we apply a portfolio approach to determine the lease term and discount rate. Stock-based compensation We have stock-based compensation plans under which various types of equity-based awards are granted, including restricted stock units (RSUs), performance units and stock options. The fair values of RSUs and stock option awards, which are subject only to service conditions with graded vesting, are recognized as compensation expense, generally on a straight-line basis over the service period, net of estimated forfeitures. The fair values of performance unit awards are recognized as compensation expense, generally on a straight-line basis from the grant date to the end of the performance period. See Note 4, Stock-based compensation. Income taxes We provide for income taxes based on pretax income and applicable tax rates in the various jurisdictions in which we operate. Significant judgment is required in determining our provision for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws. Deferred income taxes are recorded for the expected tax consequences of temporary differences between the bases of assets and liabilities, as well as for loss and tax credit carryforwards for financial reporting purposes and amounts recognized for income tax purposes. We record a valuation allowance to reduce our deferred tax assets to the amount of future tax benefit that is more likely than not to be realized. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by tax authorities based on the technical merits of the position. The tax benefit recognized in the consolidated financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized. The amount of unrecognized tax benefits (UTBs) is adjusted as appropriate for changes in facts and circumstances, such as significant amendments to existing tax law, new regulations or interpretations by tax authorities, new information obtained during a tax examination or resolution of an examination. We recognize both accrued interest and penalties, where appropriate, related to UTBs in income tax expense. See Note 6, Income taxes. Acquisitions We first determine whether a set of assets acquired constitute a business and should be accounted for as a business combination. If the assets acquired are not a business, we account for the transaction as an asset acquisition. Business combinations are accounted for by using the acquisition method of accounting. Under the acquisition method, assets acquired, including in-process research and development (IPR&D) projects, and liabilities assumed are recorded at their respective fair values as of the acquisition date in our consolidated financial statements. The excess of the fair value of consideration transferred over the fair value of the net assets acquired is recorded as goodwill. Contingent consideration obligations incurred in connection with a business combination (including the assumption of an acquiree’s liability arising from an acquisition it consummated prior to our acquisition) are recorded at their fair values on the acquisition date and remeasured at their fair values each subsequent reporting period until the related contingencies are resolved. The resulting changes in fair values are recorded in earnings. In contrast, asset acquisitions are accounted for using a cost accumulation and allocation model. Under this model, the cost of the acquisition is allocated to the assets acquired and liabilities assumed. Contingent consideration obligations incurred in connection with an asset acquisition are recorded when it is probable that they will occur and they can be reasonably estimated. See Note 2, Acquisitions, and Note 17, Fair value measurement. Cash equivalents We consider cash equivalents to be only those investments that are highly liquid, readily convertible to cash and which mature within three months from the date of purchase. Interest-bearing securities We consider our interest-bearing securities investment portfolio available-for-sale, and accordingly, these investments are recorded at fair value, with unrealized gains and losses recorded in Accumulated other comprehensive income (loss) (AOCI). Investments with maturities beyond one year may be classified as short-term marketable securities in the Consolidated Balance Sheets due to their highly liquid nature and because they represent the Company’s investments that are available for current operations. See Note 9, Investments, and Note 17, Fair value measurement. Inventories Inventories are stated at the lower of cost or net realizable value. Cost, which includes amounts related to materials, labor and overhead, is determined in a manner that approximates the first-in, first-out method. Net realizable value is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. See Note 10, Inventories. Derivatives We recognize all of our derivative instruments as either assets or liabilities at fair value in the Consolidated Balance Sheets. The accounting for changes in the fair value of a derivative instrument depends on whether the derivative has been formally designated and qualifies as part of a hedging relationship under the applicable accounting standards and, further, on the type of hedging relationship. For derivatives formally designated as hedges, we assess both at inception and quarterly thereafter whether the hedging derivatives are highly effective in offsetting changes in either the fair value or cash flows of the hedged item. Our derivatives that are not designated and do not qualify as hedges are adjusted to fair value through current earnings. See Note 17, Fair value measurement, and Note 18, Derivative instruments. Property, plant and equipment, net Property, plant and equipment is recorded at historical cost, net of accumulated depreciation, amortization and, if applicable, impairment charges. We review our property, plant and equipment assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Depreciation is provided over the assets’ useful lives on a straight-line basis. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or lease terms. See Note 11, Property, plant and equipment. Goodwill and other intangible assets Finite-lived intangible assets are recorded at cost, net of accumulated amortization, and, if applicable, impairment charges. Amortization of finite-lived intangible assets is provided over their estimated useful lives on a straight-line basis or based on the pattern in which economic benefits are consumed, if reliably determinable. We review our finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. See Note 12, Goodwill and other intangible assets. The fair values of IPR&D projects acquired in a business combination that are not complete are capitalized and accounted for as indefinite-lived intangible assets until completion or abandonment of the related R&D efforts. Upon successful completion of the project, the capitalized amount is amortized over its estimated useful life. If a project is abandoned, all remaining capitalized amounts are written off immediately. There are often major risks and uncertainties associated with IPR&D projects as we are required to obtain regulatory approvals in order to be able to market the resulting products. Such approvals require completing clinical trials that demonstrate a product candidate is safe and effective. Consequently, the eventual realized value of the acquired IPR&D project may vary from its fair value at the date of acquisition, and IPR&D impairment charges may occur in future periods. Capitalized IPR&D projects are tested for impairment annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. We consider various factors for potential impairment, including the current legal and regulatory environment and the competitive landscape. Adverse clinical trial results, significant delays in obtaining marketing approval, the inability to bring a product to market and the introduction or advancement of competitors’ products could result in partial or full impairment of the related intangible assets. We perform an impairment test of goodwill annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. To date, an impairment of goodwill has not been recorded. See Note 12, Goodwill and other intangible assets. Contingencies In the ordinary course of business, we are involved in various legal proceedings, government investigations and other matters that are complex in nature and have outcomes that are difficult to predict. Certain of these proceedings are discussed in Note 19, Contingencies and commitments. We record accruals for loss contingencies to the extent that we conclude that it is probable that a liability has been incurred and the amount of the related loss can be reasonably estimated. We evaluate, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase or decrease in the amount of the liability that has been accrued previously. Foreign currency translation The net assets of international subsidiaries whose local currencies have been determined to be the functional currencies are translated into U.S. dollars using current exchange rates. The U.S. dollar effects that arise from translating net assets of these subsidiaries at changing rates are recognized in AOCI. The subsidiaries’ earnings are translated into U.S. dollars using average exchange rates. Equity method investments The equity method of accounting is used for equity investments that give us the ability to exert significant influence, but not control, over an investee based on such factors as our ownership percentage, voting and other shareholder rights, board of director representation and the existence of other collaborative or business relationships. The equity method of accounting requires us to allocate the difference between the fair value of securities acquired and our proportionate share of the carrying value of the underlying assets (the basis difference) to various items and amortize such differences over their useful lives. Our share of the investees’ earnings or losses and amortization of basis differences, if any, are recorded one quarter in arrears in Interest and other income, net, in the Consolidated Statements of Income. We record impairment losses on our equity method investments if we deem the impairment to be other-than-temporary. We deem an impairment to be other-than-temporary based on various factors, including but not limited to, the length of time the fair value is below the carrying value, volatility of the security price and our intent and ability to retain the investment to allow for a recovery in fair value. Recent accounting pronouncements In June 2016, the FASB issued a new accounting standard that amends the guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the incurred-loss model with an expected-loss model. Accordingly, these financial assets are now presented at the net amount expected to be collected. This new standard also requires that credit losses related to available-for-sale debt securities be recorded as an allowance through net income rather than reducing the carrying amount under the former other-than-temporary-impairment model. We adopted this standard as of January 1, 2020, using a modified-retrospective approach. Adoption of the standard did not have a material impact on our consolidated financial statements. In March 2020, the FASB issued a new accounting standard to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates, commonly referred to as reference rate reform. The new standard provides temporary optional expedients and exceptions to current GAAP guidance on contract modifications and hedge accounting. Specifically, a modification to transition to an alternative reference rate is treated as an event that does not require contract remeasurement or reassessment of a previous accounting treatment. Moreover, for all types of hedging relationships, an entity may change the reference rate without having to dedesignate the hedging relationship. The standard is generally effective for all contract modifications made and hedging relationships evaluated through December 31, 2022. In January 2021, the FASB issued a new accounting standard to expand on the scope of the original March 2020 standard to include derivative instruments on discounting transactions. We are currently evaluating the impact that both standards will have on our consolidated financial statements.

Acquisitions

3 Months Ended

Mar. 31, 2018

Business Combinations [Abstract]

Business combinations

Acquisitions

Otezla® (apremilast)

On November 21, 2019, we acquired worldwide rights to Otezla®, the only oral, non-biologic treatment for psoriasis and psoriatic arthritis, along with certain related assets and liabilities, from Celgene Corporation (Celgene). Otezla® is primarily used for the treatment of patients with moderate-to-severe plaque psoriasis for whom phototherapy or systemic therapy is appropriate and is approved in more than 50 markets outside the United States, including the European Union and Japan. The acquisition was accounted for as an asset acquisition under GAAP because substantially all of the value of the assets acquired was concentrated in the global intellectual property rights of Otezla®. The operations of Otezla® have been included in our consolidated financial statements commencing on the acquisition date.

The following table summarizes the consideration transferred and the allocation of the estimated accumulated cost, including tax adjustments, to the assets acquired and liabilities assumed (in millions):


	Amounts
Cash purchase price	$	13,400
Transaction costs	40
Accumulated cost (consideration transferred)	$	13,440

Intangible assets:
Developed-product-technology rights	$	13,007
Marketing-related rights	195
Inventory	367
Deferred tax liability, net	(24)
Deferred credit	(96)
Other liabilities, net	(9)
Total assets acquired, net	$	13,440

Amgen allocated the accumulated cost of the acquisition to the assets acquired based on their relative fair values. The accumulated cost of the acquisition includes direct acquisition-related costs and applicable taxes. Goodwill is not recognized in the accounting for an asset acquisition. Rather, the excess of the accumulated cost over the fair value of the net assets acquired is reallocated to the nonfinancial assets acquired.

The developed-product-technology rights acquired relate to Otezla®. The estimated fair value was determined by using a multi-period excess earnings income approach, which is based on the present value of the incremental after-tax cash flows attributable only to the intangible asset. The developed-product-technology rights will be amortized over a weighted-average period of 8.5 years by using the straight-line method.

The estimated fair value of marketing-related rights, which relate to assembled workforce, was determined using a replacement cost approach, which consists of developing an estimate of the current cost of a similar new asset having the nearest equivalent utility to the asset being valued. The assembled workforce will be amortized over a period of 5 years by using the straight-line method.

The estimated fair value of the acquired inventory was determined using the comparative sales method, which uses actual or expected selling prices of inventory as the base amount to which adjustments for selling effort and a profit on the buyer’s effort are applied. Inventory fair value adjustments will be amortized as inventory turns over, which we estimate to approximate 2.5 years.

Upon closing, we had a difference between the book basis and tax basis of the assets acquired. The Company used the simultaneous equations method to determine the assigned value of the net assets acquired and the related deferred tax assets or liabilities. Use of this methodology resulted in an increase to the carrying value of the intangible assets of $119 million, a net deferred tax liability of $24 million and a deferred credit of $96 million. The tax effects of the acquisition are based on Amgen’s estimated blended statutory tax rate of 20%.

Nuevolution AB

On July 15, 2019, we acquired all of the outstanding stock of Nuevolution AB (Nuevolution), a publicly traded, Denmark-based biotechnology company with a leading small molecule drug discovery platform, for total consideration of $183 million in cash. The transaction, which was accounted for as a business combination, expands our ability to discover novel small molecules against difficult-to-drug targets and with greater speed and efficiency. Nuevolution’s operations, which are not material, have been included in our consolidated financial statements commencing on the acquisition date.

We allocated the consideration to acquire Nuevolution to finite-lived intangible assets of $150 million, primarily comprised of technology rights for a drug discovery platform with an estimated useful life of 10 years; goodwill of $26 million, which is not tax deductible; deferred tax liabilities of $22 million; and other net assets of $29 million.

The estimated fair values of intangible assets were determined primarily by using a probability-weighted-income approach, which discounts expected future cash flows to present value by using a discount rate that represents the estimated rate that market participants would use to value the intangible assets.

Kirin-Amgen, Inc.

During the first quarter of 2018, we acquired the remaining 50% ownership of Kirin-Amgen, Inc. (K-A), from Kirin Holdings Company, Limited (Kirin), making K-A a wholly owned subsidiary of Amgen. Upon the acquisition, K-A’s operations have been included in our consolidated financial statements commencing on the share acquisition date. The acquisition relieved Amgen of future royalty obligations to K-A.

Prior to the share acquisition date, we owned 50% of K-A and accounted for our interest in K-A by using the equity method of accounting.

The transaction was accounted for as a step acquisition of a business in which we were required to remeasure our existing 50% ownership interest at fair value. In addition, we were required to effectively settle our preexisting relationship with K-A, which resulted in a loss. Together the gain on the remeasurement of our existing ownership interest and the loss from the settlement of the preexisting relationship resulted in a net gain of $80 million, which was recorded in Interest and other income, net, in the Consolidated Statements of Income.

The primary means of consideration for this transaction was a payment of $780 million in cash. The aggregate share acquisition date consideration to acquire the remaining 50% ownership in K-A and the fair value of Amgen’s preacquisition investment consisted of the following (in millions):


	Amounts
Total cash paid to Kirin	$	780
Fair value of contingent consideration obligation	45
Loss on settlement of preexisting relationship	(168)
Total consideration transferred to acquire K-A	657

Fair value of Amgen’s investment in K-A	825
Total acquisition date fair value	$	1,482

In connection with this acquisition, we are obligated to make single-digit royalty payments to Kirin contingent upon sales of brodalumab. The estimated fair value of this contingent consideration obligation was $45 million as of the share acquisition date.

The fair values of assets acquired and liabilities assumed consisted of cash of $977 million, licensing rights of $470 million, deferred tax liabilities of $102 million, other assets and liabilities of $131 million and goodwill of $6 million. The estimated fair value of acquired licensing rights was determined by using a probability-related-income approach, which is based on the present value of the incremental after-tax cash flows attributable only to the intangible asset. The projected cash flows were based on certain assumptions, including estimates of future revenues and expenses and the time and resources needed to maintain the assets through commercialization. The licensing rights will be amortized over a weighted-average period of four years by using the straight-line method. The excess of the share acquisition date consideration over the fair values assigned to the assets acquired and the liabilities assumed of $6 million was recorded as goodwill, which is not deductible for tax purposes. The $131 million in other assets and liabilities primarily represents receivables for royalties earned by K-A but not yet received, partially offset by payables representing R&D expenses incurred but not yet reimbursed by K-A.

Pro forma results of operations for this acquisition have not been presented because this acquisition was not material to our consolidated results of operations.

Revenues

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenues

We operate in one business segment: human therapeutics. Therefore, results of our operations are reported on a consolidated basis for purposes of segment reporting, consistent with internal management reporting. Revenues by product and by geographic area, based on customers’ locations, are presented below. The majority of rest-of-world (ROW) revenues relates to products sold in Europe.

Revenues were as follows (in millions):


	Year ended December 31, 2020						Year ended December 31, 2019						Year ended December 31, 2018
	U.S.		ROW		Total		U.S.		ROW		Total		U.S.		ROW		Total
Enbrel® (etanercept)	$	4,855	$	141	$	4,996	$	5,050	$	176	$	5,226	$	4,807	$	207	$	5,014
Prolia® (denosumab)	1,830		933		2,763		1,772		900		2,672		1,500		791		2,291
Neulasta® (pegfilgrastim)	2,001		292		2,293		2,814		407		3,221		3,866		609		4,475
Otezla®(1)	1,790		405		2,195		139		39		178		—		—		—
XGEVA® (denosumab)	1,405		494		1,899		1,457		478		1,935		1,338		448		1,786
Aranesp® (darbepoetin alfa)	629		939		1,568		758		971		1,729		942		935		1,877
KYPROLIS® (carfilzomib)	710		355		1,065		654		390		1,044		583		385		968
Repatha® (evolocumab)	459		428		887		376		285		661		358		192		550
Other products	4,306		2,268		6,574		3,511		2,027		5,538		4,035		1,537		5,572
Total product sales(2)	17,985		6,255		24,240		16,531		5,673		22,204		17,429		5,104		22,533
Other revenues	511		673		1,184		693		465		1,158		929		285		1,214
Total revenues	$	18,496	$	6,928	$	25,424	$	17,224	$	6,138	$	23,362	$	18,358	$	5,389	$	23,747

____________

(1) Otezla® was acquired on November 21, 2019.

(2) Hedging gains and losses, which are included in product sales, were not material for the years ended December 31, 2020, 2019 and 2018.

In the United States, we sell primarily to pharmaceutical wholesale distributors that we utilize as the principal means of distributing our products to healthcare providers. Outside the United States, we sell principally to healthcare providers and/or pharmaceutical wholesale distributors depending on the distribution practice in each country. We monitor the financial condition of our larger customers and limit our credit exposure by setting credit limits and, in certain circumstances, by requiring letters of credit or obtaining credit insurance.

We had product sales to three customers, each of them accounting for more than 10% of total revenues for each of the years ended December 31, 2020, 2019 and 2018. For the year ended December 31, 2020, on a combined basis, these customers accounted for 83% of total gross revenues as shown in the following table. Certain information with respect to these customers was as follows (dollar amounts in millions):


	Years ended December 31,
	2020			2019			2018
AmerisourceBergen Corporation:
Gross product sales	$	14,743		$	12,301		$	12,091
% of total gross revenues	34		%	33		%	33		%
McKesson Corporation:
Gross product sales	$	13,779		$	11,795		$	11,434
% of total gross revenues	32		%	31		%	31		%
Cardinal Health, Inc.:
Gross product sales	$	7,332		$	6,538		$	7,475
% of total gross revenues	17		%	17		%	20		%

As of December 31, 2020 and 2019, amounts due from these three customers each exceeded 10% of gross trade receivables and accounted for 74% and 73%, respectively, of net trade receivables on a combined basis. As of December 31, 2020 and 2019, 28% and 27%, respectively, of net trade receivables were due from customers located outside the United States, the majority of which were from Europe. Our total allowance for doubtful accounts as of December 31, 2020 and 2019, was not material.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
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-Paragraph 13
-Subparagraph (b)(2)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Stock-based compensation

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock-based compensation

Our Amended and Restated 2009 Equity Incentive Plan (the Amended 2009 Plan) authorizes for issuance to employees of Amgen and nonemployee members of our Board of Directors shares of our common stock pursuant to grants of equity-based awards, including RSUs, stock options and performance units. The pool of shares available under the Amended 2009 Plan is reduced by one share for each stock option granted and by 1.9 shares for other types of awards granted, including RSUs and performance units (full-value awards). In general, if any shares subject to an award granted under the Amended 2009 Plan expire or become forfeited, terminated or canceled without the issuance of shares, the shares subject to such awards are added back into the authorized pool on the same basis that they were removed. In addition, under the Amended 2009 Plan, shares withheld to pay for minimum statutory tax obligations with respect to full-value awards are added back into the authorized pool on the basis of 1.9 shares. As of December 31, 2020, the Amended 2009 Plan provides for future grants and/or issuances of up to approximately 23 million shares of our common stock. Stock-based awards under our employee compensation plans are made with newly issued shares reserved for this purpose.

The following table reflects the components of stock-based compensation expense recognized in our Consolidated Statements of Income (in millions):


	Years ended December 31,
	2020		2019		2018
RSUs	$	178	$	168	$	165
Performance units	118		105		117
Stock options	34		35		29
Total stock-based compensation expense, pretax	330		308		311
Tax benefit from stock-based compensation expense	(72)		(67)		(67)
Total stock-based compensation expense, net of tax	$	258	$	241	$	244

Restricted stock units and stock options

Eligible employees generally receive an annual grant of RSUs and, for certain executive-level employees, stock options, with the size and type of award generally determined by the employee’s salary grade and performance level. Certain management and professional-level employees typically receive RSU grants upon commencement of employment. Nonemployee members of our Board of Directors also receive an annual grant of RSUs.

Our RSU and stock option grants provide for accelerated or continued vesting in certain circumstances as defined in the plans and related grant agreements, including upon death, disability, termination in connection with a change in control and the retirement of employees who meet certain service and/or age requirements. RSUs and stock options generally vest in equal amounts on the second, third and fourth anniversaries of the grant date. RSUs accrue dividend equivalents, which are typically payable in shares only when and to the extent the underlying RSUs vest and are issued to the recipient.

Restricted stock units

The grant date fair value of an RSU equals the closing price of our common stock on the grant date, as RSUs accrue dividend equivalents during their vesting period. The weighted-average grant date fair values per unit of RSUs granted during the years ended December 31, 2020, 2019 and 2018, were $235.63, $182.12 and $179.18, respectively.

The following table summarizes information regarding our RSUs:


	Year ended December 31, 2020
	Units (in millions)	Weighted-average grant date fair value
Balance nonvested as of December 31, 2019	3.1	$	174.97
Granted	1.1	$	235.63
Vested	(1.0)	$	167.23
Forfeited	(0.2)	$	190.15
Balance nonvested as of December 31, 2020	3.0	$	198.11

The total grant date fair values of RSUs that vested during the years ended December 31, 2020, 2019 and 2018, were $161 million, $160 million and $167 million, respectively.

Stock options

The exercise price of stock options is set as the closing price of our common stock on the grant date, and the related number of shares granted is fixed at that point in time. Awards expire 10 years from the date of grant. We use the Black–Scholes option valuation model to estimate the grant date fair value of stock options.

The weighted-average assumptions used in the option valuation model and the resulting weighted-average grant date fair values of stock options granted were as follows:


	Years ended December 31,
	2020			2019			2018
Closing price of our common stock on grant date	$	236.36		$	177.31		$	177.46
Expected volatility (average of implied and historical volatility)	28.1		%	23.5		%	24.6		%
Expected life (in years)	5.8			5.8			5.8
Risk-free interest rate	0.4		%	2.4		%	2.8		%
Expected dividend yield	3.0		%	3.1		%	2.9		%
Fair value of stock options granted	$	42.34		$	30.47		$	34.60

The following table summarizes information regarding our stock options:


	Year ended December 31, 2020
	Options (in millions)	Weighted- average exercise price		Weighted- average remaining contractual life (in years)	Aggregate intrinsic value (in millions)
Balance unexercised as of December 31, 2019	4.8	$	157.00
Granted	1.0	$	236.36
Exercised	(0.9)	$	117.90
Expired/forfeited	(0.2)	$	178.36
Balance unexercised as of December 31, 2020	4.7	$	179.90	7.3	$	243
Vested or expected to vest as of December 31, 2020	4.5	$	178.37	7.3	$	239
Exercisable as of December 31, 2020	1.5	$	150.80	5.5	$	120

The total intrinsic values of options exercised during the years ended December 31, 2020, 2019 and 2018, were $98 million, $68 million and $53 million, respectively. The actual tax benefits realized from tax deductions from option exercises during the years ended December 31, 2020, 2019 and 2018, were $21 million, $15 million and $12 million, respectively.

As of December 31, 2020, $345 million of unrecognized compensation cost was related to nonvested RSUs and unvested stock options, which is expected to be recognized over a weighted-average period of 1.8 years.

Performance units

Certain management-level employees also receive annual grants of performance units, which give the recipient the right to receive common stock that is contingent upon achievement of specified preestablished goals over the performance period, which is generally three years. The performance goals for the units granted during the years ended December 31, 2020, 2019 and 2018, which are accounted for as equity awards, are based on (i) Amgen’s stockholder return compared with a comparator group of companies, which are considered market conditions and are therefore reflected in the grant date fair values of the units, and (ii) Amgen’s stand-alone financial performance measures, which are considered performance conditions. The expense recognized for awards is based on the grant date fair value of a unit multiplied by the number of units expected to be earned with respect to the related performance conditions, net of estimated forfeitures. Depending on the outcome of these performance goals, a recipient may ultimately earn a number of units greater or less than the number of units granted. Shares of our common stock are issued on a one-for-one basis for each performance unit earned. In general, performance unit awards vest at the end of the performance period. The performance award program provides for accelerated or continued vesting in certain circumstances as defined in the plan, including upon death, disability, a change in control and retirement of employees who meet certain service and/or age requirements. Performance units accrue dividend equivalents that are typically payable in shares only when and to the extent the underlying performance units vest and are issued to the recipient, including with respect to market and performance conditions that affect the number of performance units earned.

We use a payout simulation model to estimate the grant date fair value of performance units. The weighted-average assumptions used in the payout simulation model and the resulting weighted-average grant date fair values of performance units granted were as follows:


	Years ended December 31,
	2020			2019			2018
Closing price of our common stock on grant date	$	236.36		$	177.31		$	177.93
Volatility	27.5		%	22.1		%	23.8		%
Risk-free interest rate	0.2		%	2.3		%	2.6		%
Fair value of units granted	$	249.07		$	188.40		$	189.21

The payout simulation model assumes correlations of returns of the stock prices of our common stock and the common stocks of the comparator groups of companies and stock price volatilities of the comparator groups of companies to simulate stockholder returns over the performance periods and their resulting impact on the payout percentages based on the contractual terms of the performance units.

As of December 31, 2020 and 2019, 1.8 million and 2.0 million performance units were outstanding with weighted-average grant date fair values per unit of $207.52 and $185.64 per unit, respectively. During the year ended December 31, 2020, 0.6 million performance units with a weighted-average grant date fair value per unit of $249.07 were granted, and 0.1 million performance units with a weighted-average grant date fair value per unit of $199.86 were forfeited.

The total fair values of performance units paid during the years ended December 31, 2020, 2019 and 2018 were $230 million, $176 million and $133 million, respectively, based on the number of performance units earned multiplied by the closing stock price of our common stock on the last day of the performance period.

As of December 31, 2020, $127 million of unrecognized compensation cost was related to nonvested performance units, which is expected to be recognized over a weighted-average period of one year.

Defined contribution plan	12 Months Ended
Defined contribution plan	Dec. 31, 2020
Retirement Benefits [Abstract]
Defined contribution plan	Defined contribution planThe Company has defined contribution plans to which certain employees of the Company and participating subsidiaries may defer compensation for income tax purposes. Participants are eligible to receive matching contributions based on their contributions, in addition to other Company contributions. Defined contribution plan expenses were $231 million, $220 million and $173 million for the years ended December 31, 2020, 2019 and 2018, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

Income taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income taxes

Income before income taxes included the following (in millions):


	Years ended December 31,
	2020		2019		2018
Domestic	$	4,087	$	4,371	$	4,856
Foreign	4,046		4,767		4,689
Total income before income taxes	$	8,133	$	9,138	$	9,545

The provision for income taxes included the following (in millions):


	Years ended December 31,
	2020		2019		2018
Current provision:
Federal	$	921	$	1,284	$	1,270
State	34		39		17
Foreign	277		277		227
Total current provision	1,232		1,600		1,514
Deferred (benefit) provision:
Federal	(321)		(276)		(317)
State	9		(22)		(7)
Foreign	(51)		(6)		(39)
Total deferred benefit	(363)		(304)		(363)
Total provision for income taxes	$	869	$	1,296	$	1,151

Deferred income taxes reflect the tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, tax credit carryforwards and the tax effects of net operating loss (NOL) carryforwards. Significant components of our deferred tax assets and liabilities were as follows (in millions):


	December 31,
	2020		2019
Deferred income tax assets:
NOL and credit carryforwards	$	794	$	800
Accrued expenses	561		457
Expenses capitalized for tax	144		170
Stock-based compensation	92		91

Other	301		269
Total deferred income tax assets	1,892		1,787
Valuation allowance	(571)		(517)
Net deferred income tax assets	1,321		1,270

Deferred income tax liabilities:
Acquired intangible assets	(903)		(1,288)
Debt	(282)		(210)
Fixed assets	(148)		(53)
Other	(189)		(233)
Total deferred income tax liabilities	(1,522)		(1,784)
Total deferred income taxes, net	$	(201)	$	(514)

Valuation allowances are provided to reduce the amounts of our deferred tax assets to an amount that is more likely than not to be realized based on an assessment of positive and negative evidence, including estimates of future taxable income necessary to realize future deductible amounts.

The valuation allowance increased in 2020, primarily driven by the Company’s expectation that some state R&D credits will not be utilized and that certain foreign net operating losses will expire unused.

As of December 31, 2020, we had $20 million of federal tax credit carryforwards available to reduce future federal income taxes and have provided no valuation allowance for those federal tax credit carryforwards. The federal tax credit carryforwards expire between 2023 and 2035. We had $681 million of state tax credit carryforwards available to reduce future state income taxes and have provided a valuation allowance for $585 million of those state tax credit carryforwards.

As of December 31, 2020, we had $143 million of federal NOL carryforwards available to reduce future federal income taxes and have provided a valuation allowance for $6 million of those federal NOL carryforwards. The federal NOL carryforwards, for which no valuation allowance has been provided, expire between 2021 and 2035. We had $167 million of state NOL carryforwards available to reduce future state income taxes and have provided a valuation allowance for all of the state NOL carryforwards. We had $1.9 billion of foreign NOL carryforwards available to reduce future foreign income taxes and have provided a valuation allowance for $754 million of those foreign NOL carryforwards. For the foreign NOLs with no valuation allowance provided, $861 million has no expiry; and the remainder will expire between 2021 and 2030.

The reconciliations of the total gross amounts of UTBs were as follows (in millions):


	Years ended December 31,
	2020		2019		2018
Beginning balance	$	3,287	$	3,061	$	2,953
Additions based on tax positions related to the current year	165		215		173
Additions based on tax positions related to prior years	3		22		13
Reductions for tax positions of prior years	(35)		(11)		(17)

Settlements	(68)		—		(61)
Ending balance	$	3,352	$	3,287	$	3,061

Substantially all of the UTBs as of December 31, 2020, if recognized, would affect our effective tax rate. During the year ended December 31, 2020, we effectively settled certain issues with the IRS. As a result, we remeasured our UTBs accordingly.

Interest and penalties related to UTBs are included in our provision for income taxes. During the years ended December 31, 2020, 2019 and 2018, we recognized $116 million, $198 million and $137 million, respectively, of interest and penalties through the income tax provision in the Consolidated Statements of Income. The decrease in interest expense for the year ended December 31, 2020 was primarily due to lower interest rates during 2020. As of December 31, 2020 and 2019, accrued interest and penalties associated with UTBs were $783 million and $667 million, respectively.

The reconciliations between the federal statutory tax rate applied to income before income taxes and our effective tax rate were as follows:


	Years ended December 31,
	2020		2019		2018
Federal statutory tax rate	21.0	%	21.0	%	21.0	%
Foreign earnings	(4.7)	%	(4.5)	%	(4.3)	%
Foreign-derived intangible income	(0.7)	%	(0.7)	%	(0.4)	%
Credits, Puerto Rico Excise Tax	(2.9)	%	(2.6)	%	(2.5)	%
2017 Tax Act, net impact on intercompany sales	—	%	—	%	(1.8)	%
Interest on uncertain tax positions	1.1	%	1.6	%	1.2	%
Credits, primarily federal R&D	(1.4)	%	(1.0)	%	(0.8)	%
Audit settlements	(1.0)	%	—	%	(0.3)	%
Other, net	(0.7)	%	0.4	%	—	%
Effective tax rate	10.7	%	14.2	%	12.1	%

The effective tax rates for the years ended December 31, 2020, 2019 and 2018 differ from the federal statutory rate primarily due to impacts of the jurisdictional mix of income and expenses. Substantially all of the benefit to our effective tax rate from foreign earnings results from the Company’s operations in Puerto Rico, a territory of the United States that is treated as a foreign jurisdiction for U.S. tax purposes. Our operations in Puerto Rico are subject to tax incentive grants through 2035. Additionally, the Company’s operations conducted in Singapore are subject to a tax incentive grant through 2034. Our foreign earnings are also subject to U.S. tax at a reduced rate of 10.5%.

The U.S. territory of Puerto Rico imposes an excise tax on the gross intercompany purchase price of goods and services from our manufacturing site in Puerto Rico. The rate of 4% is effective through December 31, 2027. We account for the excise tax as a manufacturing cost that is capitalized in inventory and expensed in cost of sales when the related products are sold. For U.S. income tax purposes, the excise tax results in foreign tax credits that are generally recognized in our provision for income taxes when the excise tax is incurred.

Income taxes paid during the years ended December 31, 2020, 2019 and 2018, were $1.4 billion, $1.9 billion and $1.9 billion, respectively.

One or more of our legal entities file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and certain foreign jurisdictions. Our income tax returns are routinely examined by tax authorities in those jurisdictions. Significant disputes may arise with tax authorities involving issues regarding the timing and amount of deductions, the use of tax credits and allocations of income and expenses among various tax jurisdictions because of differing interpretations of tax laws, regulations and relevant facts. In 2017, we received a Revenue Agent Report (RAR) and a modified RAR from the Internal Revenue Service (IRS) for the years 2010, 2011 and 2012 proposing significant adjustments that primarily relate to the allocation of profits between certain of our entities in the United States and the U.S. territory of Puerto Rico. We disagree with the proposed adjustments and calculations and have been pursuing resolution with the IRS administrative appeals office. However, we have been unable to reach resolution at the administrative appeals level, and we anticipate that we will receive a Notice of Deficiency, which we would expect to vigorously contest through the judicial process. In addition, in 2020, we received an RAR and a modified RAR from the IRS for the years 2013, 2014 and 2015 also proposing significant adjustments that primarily relate to the allocation of profits between certain of our entities in the United States and the U.S. territory of Puerto Rico similar to those proposed for the years 2010, 2011 and 2012. We disagree with the 2013, 2014 and 2015 proposed adjustments and calculations and are pursuing resolution with the IRS administrative appeals office. The IRS audit for years 2016, 2017 and 2018 is expected to start in the near term. We are also currently under examination by a number of other state and foreign tax jurisdictions.

Final resolution of these complex matters is not likely within the next 12 months. We believe our accrual for income tax liabilities is appropriate based on past experience, interpretations of tax law, application of the tax law to our facts and judgments about potential actions by tax authorities; however, due to the complexity of the provision for income taxes and uncertain resolution of these matters, the ultimate outcome of any tax matters may result in payments substantially greater than amounts accrued and could have a material adverse impact on our consolidated financial statements.

We are no longer subject to U.S. federal income tax examinations for years ended on or before December 31, 2009.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Earnings per share

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Earnings per share

The computation of basic earnings per share (EPS) is based on the weighted-average number of our common shares outstanding. The computation of diluted EPS is based on the weighted-average number of our common shares outstanding and dilutive potential common shares, which primarily include shares that may be issued under our stock option, restricted stock and performance unit award programs (collectively, dilutive securities), as determined by using the treasury stock method.

The computations for basic and diluted EPS were as follows (in millions, except per-share data):


	Years ended December 31,
	2020		2019		2018
Income (Numerator):
Net income for basic and diluted EPS	$	7,264	$	7,842	$	8,394

Shares (Denominator):
Weighted-average shares for basic EPS	586		605		661
Effect of dilutive securities	4		4		4
Weighted-average shares for diluted EPS	590		609		665

Basic EPS	$	12.40	$	12.96	$	12.70
Diluted EPS	$	12.31	$	12.88	$	12.62

For each of the three years ended December 31, 2020, the number of antidilutive employee stock-based awards excluded from the computation of diluted EPS was not significant.

Collaborations	12 Months Ended
Collaborations	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Collaborations	Collaborations A collaborative arrangement is a contractual arrangement that involves a joint operating activity. Such arrangements involve two or more parties that are both (i) active participants in the activity and (ii) exposed to significant risks and rewards dependent on the commercial success of the activity. From time to time, we enter into collaborative arrangements for the R&D, manufacture and/or commercialization of products and/or product candidates. These collaborations generally provide for nonrefundable upfront license fees, development and commercial-performance milestone payments, cost sharing, royalty payments and/or profit sharing. Our collaboration arrangements are performed with no guarantee of either technological or commercial success, and each arrangement is unique in nature. See Note 1, Summary of significant accounting policies, for additional discussion of revenues recognized for these types of arrangements. Operating expenses for costs incurred pursuant to these arrangements are reported in their respective expense line items in the Consolidated Statements of Income, net of any payments due to or reimbursements due from our collaboration partners, with such reimbursements being recognized at the time the party becomes obligated to pay. Our significant arrangements are discussed below. BeiGene, Ltd. On January 2, 2020, we acquired a 20.5% stake in BeiGene, Ltd. (BeiGene), for approximately $2.8 billion in cash as part of a collaboration to expand our oncology presence in China. Under the collaboration, BeiGene commenced selling XGEVA® and will commercialize KYPROLIS® and BLINCYTO® (blinatumomab) in China, and Amgen will share profits and losses equally during the initial product-specific commercialization periods; thereafter, product rights may revert to Amgen, and Amgen will pay royalties to BeiGene on sales in China of such products for a specified period. In addition, we will jointly develop a portion of our oncology portfolio with BeiGene sharing in global R&D costs by providing cash and development services up to $1.25 billion. Upon regulatory approval, BeiGene will assume commercialization rights in China for a specified period, and Amgen and BeiGene will share profits equally until certain of these product rights revert to Amgen. Upon return of the product rights, Amgen will pay royalties to BeiGene on sales in China for a specified period. For product sales outside of China, Amgen will also pay BeiGene royalties. During the year ended December 31, 2020, net costs recovered from BeiGene for oncology product candidates were $225 million and were recorded as an offset to R&D expense in the Consolidated Statements of Income. Profit share payments and product sales between Amgen and BeiGene were not material for the year ended December 31, 2020. As of December 31, 2020, the amount owed from BeiGene for net costs recovered was $113 million, which is included in Other current assets in the Consolidated Balance Sheets. In connection with this collaboration, we acquired an ownership interest in BeiGene. See Note 9, Investments. Novartis Pharma AG We are in a collaboration with Novartis Pharma AG (Novartis) to jointly develop and commercialize Aimovig® (erenumab-aooe). In the United States, Amgen and Novartis jointly develop and collaborate on the commercialization of Aimovig®. Amgen, as the principal, recognizes product sales of Aimovig® in the United States, shares U.S. commercialization costs with Novartis and pays Novartis a significant royalty on net sales in the United States. Novartis holds global co-development rights and exclusive commercial rights outside the United States and Japan for Aimovig®. Novartis pays Amgen double-digit royalties on net sales of the product in the Novartis exclusive territories and funds a portion of global R&D expenses. In addition, Novartis will make a payment to Amgen of up to $100 million if certain commercial and expenditure thresholds are achieved with respect to Aimovig® in the United States. Amgen manufactures and supplies Aimovig® worldwide. The migraine collaboration will continue for the commercial life of the product unless terminated in accordance with its terms. We are currently involved in litigation with Novartis over our collaboration agreements for the development and commercialization of Aimovig®. See Note 19, Contingencies and commitments. During the years ended December 31, 2020 and 2019, net costs recovered from Novartis for migraine products were $192 million and $187 million, respectively, and were recorded primarily in SG&A expense in the Consolidated Statements of Income. During the year ended December 31, 2018, net costs paid to Novartis for migraine products were $44 million and were recorded primarily in SG&A expense in the Consolidated Statements of Income. During the years ended December 31, 2020, 2019, and 2018, royalties due to Novartis for Aimovig® were $139 million, $115 million and $43 million, respectively, and were recorded in Cost of sales in the Consolidated Statements of Income. During the years ended December 31, 2020, 2019 and 2018, royalties due from Novartis for Aimovig® were not material. As a result of certain regulatory and commercial events, we received milestone payments from Novartis of $295 million during the year ended December 31, 2018, which was recorded in Other revenues in the Consolidated Statements of Income. Bayer HealthCare LLC We are in a licensing arrangement with Bayer HealthCare LLC (Bayer) for Nexavar®. Nexavar® is currently marketed and sold in more than 100 countries around the world for the treatment of unresectable liver cancer and advanced kidney cancer. In the United States, Nexavar® is also approved for the treatment of patients with locally recurrent or metastatic, progressive, differentiated thyroid carcinoma refractory to radioactive iodine treatment. In 2020, we amended the terms of our agreement with Bayer, which transferred all our operational responsibilities outside the United States to Bayer, including commercial and medical affairs activities. Prior to the amendment of the agreement, we shared equally in the profits outside the United States, excluding Japan. In lieu of this profit share, Bayer now pays us a royalty on sales of Nexavar® at a percentage rate in the low 30s. The rights to develop and market Nexavar® in Japan are reserved to Bayer. In the United States, Bayer pays us a royalty on sales of Nexavar® at a percentage rate in the high 30s. The agreement with Bayer will terminate at the later of the date when patents expire that were issued in connection with product candidates discovered under the agreement or on the last day that we or Bayer market or sell products commercialized under the agreement anywhere in the world. Patents related to Nexavar® began to expire in 2020. As a result of the 2020 amendment to the collaboration agreement, royalties due from Bayer for Nexavar® were $217 million and net profits were not material for the year ended December 31, 2020. During the years ended December 31, 2019 and 2018, royalties due from Bayer for Nexavar® were $79 million and $91 million, respectively. During the years ended December 31, 2019 and 2018, Amgen recorded Nexavar® net profits of $210 million and $164 million, respectively. Royalties and profit share due from Nexavar® were recorded in Other revenues in the Consolidated Statements of Income. Net R&D expenses related to the agreement were not material for the years ended December 31, 2020, 2019 and 2018. Other In addition to the collaborations discussed above, we have various other collaborations that are not individually significant to our business at this time. Pursuant to the terms of those agreements, we may be required to pay additional amounts or we may receive additional amounts upon the achievement of various development and commercial milestones, which in the aggregate could be significant. We may also incur or have reimbursed to us significant R&D costs if the related product candidate were to advance to late-stage clinical trials. In addition, if any products related to these collaborations are approved for sale, we may be required to pay significant royalties or we may receive significant royalties on future sales. The payment of these amounts, however, is contingent upon the occurrence of various future events, which have a high degree of uncertainty of occurrence.

Investments

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Investments

Available-for-sale investments

The amortized cost, gross unrealized gains, gross unrealized losses and fair values of interest-bearing securities, all of which are considered available-for-sale, by type of security were as follows (in millions):


Types of securities as of December 31, 2020	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair values
U.S. Treasury notes	$	129	$	1	$	—	$	130
U.S. Treasury bills	4,948		—		—		4,948
Corporate debt securities:
Financial	—		—		—		—
Industrial	—		—		—		—
Other	—		—		—		—
Residential-mortgage-backed securities	—		—		—		—

Money market mutual funds	4,765		—		—		4,765
Other short-term interest-bearing securities	2		—		—		2
Total available-for-sale investments	$	9,844	$	1	$	—	$	9,845


Types of securities as of December 31, 2019	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair values
U.S. Treasury notes	$	359	$	1	$	—	$	360
U.S. Treasury bills	—		—		—		—
Corporate debt securities:
Financial	1,108		13		—		1,121
Industrial	824		10		—		834
Other	195		3		—		198
Residential-mortgage-backed securities	181		1		—		182

Money market mutual funds	5,250		—		—		5,250
Other short-term interest-bearing securities	289		—		—		289


Total available-for-sale investments	$	8,206	$	28	$	—	$	8,234

The fair values of available-for-sale investments by location in the Consolidated Balance Sheets were as follows (in millions):


	December 31,
Consolidated Balance Sheets locations	2020		2019
Cash and cash equivalents	$	5,464	$	5,360
Marketable securities	4,381		2,874

Total available-for-sale investments	$	9,845	$	8,234

Cash and cash equivalents in the above table excludes bank account cash of $802 million and $677 million as of December 31, 2020 and 2019, respectively.

The fair values of available-for-sale investments by contractual maturity, except for mortgage- and asset-backed securities that do not have a single maturity date, were as follows (in millions):


	December 31,
Contractual maturities	2020		2019
Maturing in one year or less	$	9,795	$	5,629
Maturing after one year through three years	50		2,304
Maturing after three years through five years	—		119


Residential-mortgage-backed securities	—		182
Total available-for-sale investments	$	9,845	$	8,234

For the years ended December 31, 2020, 2019 and 2018, realized gains on interest-bearing securities were $37 million, $92 million and $29 million, respectively, and realized losses on interest-bearing securities were $4 million, $36 million and $394 million, respectively. Realized gains and losses on interest-bearing securities are recorded in Interest and other income, net, in the Consolidated Statements of Income. The cost of securities sold is based on the specific-identification method.

The primary objective of our investment portfolio is to maintain safety of principal, prudent levels of liquidity and acceptable levels of risk. Our investment policy limits interest-bearing security investments to certain types of debt and money market instruments issued by institutions with investment-grade credit ratings, and it places restrictions on maturities and concentration by asset class and issuer.

We review our available-for-sale investments for declines in fair value below our cost basis each quarter or whenever circumstances indicate that the cost basis of an asset may not be recoverable and assess whether the decline was due to credit-related factors or other factors. Our evaluation is based on a number of factors, including the extent to which the fair value is below our cost basis as well as adverse conditions related specifically to the security, such as any changes to the credit rating of the security and the intent to sell or whether we will more likely than not be required to sell the security before recovery of its amortized cost basis. Our assessment of whether a security is impaired could change in the future based on new developments or changes in assumptions related to that particular security.

Equity securities

We held investments in equity securities with readily determinable fair values of $477 million and $303 million as of December 31, 2020 and 2019, respectively, which are included in Other assets in the Consolidated Balance Sheets. For the years ended December 31, 2020, 2019 and 2018, net unrealized gains on publicly traded securities were $174 million, $112 million and $24 million, respectively. Realized gains and losses on publicly traded securities for the years ended December 31, 2020, 2019 and 2018, were not material.

We held investments of $203 million and $176 million in equity securities without readily determinable fair values as of December 31, 2020 and 2019, respectively, which are included in Other assets in the Consolidated Balance Sheets. Gains and losses recognized on these securities, including adjustments to the carrying values of these securities, were not material for the years ended December 31, 2020, 2019 and 2018.

Equity Method Investments

Limited partnership investments

We held limited partnership investments of $496 million and $320 million as of December 31, 2020 and 2019, respectively, which are included in Other assets in the Consolidated Balance Sheets. These investments, primarily investment funds of early-stage biotechnology companies, are accounted for by using the equity method of accounting and are measured by using our proportionate share of the net asset values of the underlying investments held by the limited partnerships as a practical expedient. These investments are typically redeemable only through distributions upon liquidation of the underlying assets. As of December 31, 2020, unfunded additional commitments to be made for these investments during the next several years were not material. For the years ended December 31, 2020, 2019 and 2018 net gains recognized from our limited partnership investments were $241 million, $27 million and $91 million, respectively.

BeiGene

On January 2, 2020, we acquired a 20.5% ownership interest in BeiGene for $2.8 billion, of which $2.6 billion was attributed to the fair value of equity securities upon closing, with the remainder attributed to prepaid R&D. Our equity investment in BeiGene is included in Other assets in the Consolidated Balance Sheets. The fair value of equity securities acquired exceeded our proportionate share of the carrying value of the underlying net assets of BeiGene by approximately $2.4 billion. This investment is accounted for by using the equity method of accounting, which requires us to identify and allocate amounts to the items that give rise to the basis difference and to amortize these items over their useful lives. This amortization, along with our share of the results of operations of BeiGene, is included in Interest and other income, net, in our Consolidated Statements of Income. Recognition occurs one quarter in arrears, which began in the second quarter of 2020. The basis difference was allocated to finite-lived intangible assets, indefinite-lived intangible assets, equity-method goodwill and related deferred taxes. The finite-lived intangible assets are being amortized over a period ranging from 8 to 15 years.

During the year ended December 31, 2020, we recognized an increase in the carrying value of our investment by purchasing additional shares to maintain our ownership interest for an aggregate cost of $569 million and recognized $34 million for the impact of other BeiGene ownership transactions. The carrying value of the investment during the year ended December 31, 2020, was reduced for our share of BeiGene’s net losses of $229 million and amortization of the basis difference of $109 million.

As of December 31, 2020, the carrying value and fair value of our approximately 20.5% ownership interest in BeiGene totaled $2.9 billion and $4.9 billion, respectively. We believe that as of December 31, 2020, the carrying value of our equity investment in BeiGene is fully recoverable. For information on a collaboration agreement we entered into with BeiGene in connection with this investment, see Note 8, Collaborations.

Inventories

12 Months Ended

Dec. 31, 2020

Inventory Disclosure [Abstract]

Inventories

Inventories consisted of the following (in millions):


	December 31,
	2020		2019
Raw materials	$	486	$	358
Work in process	2,437		2,227
Finished goods	970		999
Total inventories	$	3,893	$	3,584

Property, plant and equipment

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Property, plant and equipment

Property, plant and equipment consisted of the following (dollar amounts in millions):


		December 31,
	Useful life (in years)	2020		2019
Land	—	$	259	$	263
Buildings and improvements	10-40	3,857		3,757
Manufacturing equipment	8-12	2,865		2,655
Laboratory equipment	8-12	1,257		1,236
Fixed equipment	12	2,406		2,338
Capitalized software	3-5	1,216		1,154
Other	5-10	1,091		975
Construction in progress	—	915		907
Property, plant and equipment, gross		13,866		13,285
Less accumulated depreciation and amortization		(8,977)		(8,357)
Property, plant and equipment, net		$	4,889	$	4,928

During the years ended December 31, 2020, 2019 and 2018, we recognized depreciation and amortization expense associated with our property, plant and equipment of $640 million, $635 million and $630 million, respectively.

Geographic information

Certain geographic information with respect to property, plant and equipment, net (long-lived assets), was as follows (in millions):


	December 31,
	2020		2019
United States	$	2,473	$	2,433
Puerto Rico	1,331		1,402
ROW	1,085		1,093
Total property, plant and equipment, net	$	4,889	$	4,928

Goodwill and intangible assets

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and other intangible assets

Goodwill

The changes in the carrying amounts of goodwill were as follows (in millions):


	December 31,
	2020		2019
Beginning balance	$	14,703	$	14,699
Addition from acquisitions	—		26
Currency translation adjustments	(14)		(22)
Ending balance	$	14,689	$	14,703

Other intangible assets

Other intangible assets consisted of the following (in millions):


	December 31,
	2020						2019
	Gross carrying amounts		Accumulated amortization		Other intangible assets, net		Gross carrying amounts		Accumulated amortization		Other intangible assets, net
Finite-lived intangible assets:
Developed-product-technology rights	$	25,591	$	(10,564)	$	15,027	$	25,575	$	(8,322)	$	17,253
Licensing rights	3,743		(2,791)		952		3,761		(2,398)		1,363
Marketing-related rights	1,367		(1,041)		326		1,382		(965)		417
R&D technology rights	1,317		(1,065)		252		1,273		(947)		326
Total finite-lived intangible assets	32,018		(15,461)		16,557		31,991		(12,632)		19,359
Indefinite-lived intangible assets:
IPR&D	30		—		30		54		—		54
Total other intangible assets	$	32,048	$	(15,461)	$	16,587	$	32,045	$	(12,632)	$	19,413

Developed-product-technology rights consists of rights related to marketed products acquired in acquisitions. Licensing rights consists primarily of contractual rights acquired in acquisitions to receive future milestone, royalty and profit-sharing payments; capitalized payments to third parties for milestones related to regulatory approvals to commercialize products; and up-front payments associated with royalty obligations for marketed products. Marketing-related rights consists primarily of rights related to the sale and distribution of marketed products. R&D technology rights pertains to technologies used in R&D that have alternative future uses.

IPR&D consists of R&D projects acquired in a business combination that are not complete at the time of acquisition due to remaining technological risks and/or lack of receipt of required regulatory approvals. All IPR&D projects have major risks and uncertainties associated with the timely and successful completion of the development and commercialization of product candidates, including our ability to confirm safety and efficacy based on data from clinical trials, our ability to obtain necessary regulatory approvals and our ability to successfully complete these tasks within budgeted costs. We are not permitted to market a human therapeutic without obtaining regulatory approvals, and such approvals require the completion of clinical trials that demonstrate that a product candidate is safe and effective. In addition, the availability and extent of coverage and reimbursement from third-party payers, including government healthcare programs and private insurance plans as well as competitive product launches, affect the revenues a product can generate. Consequently, the eventual realized values, if any, of acquired IPR&D projects may vary from their estimated fair values. We review IPR&D projects for impairment annually, whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable and upon the establishment of technological feasibility or regulatory approval.During the years ended December 31, 2020, 2019 and 2018, we recognized amortization associated with our finite-lived intangible assets of $2.8 billion, $1.4 billion and $1.3 billion, respectively. Amortization of intangible assets is included primarily in Cost of sales in the Consolidated Statements of Income. The total estimated amortization for our finite-lived intangible assets for the years ending December 31, 2021, 2022, 2023, 2024 and 2025, are $2.6 billion, $2.5 billion, $2.4 billion, $2.4 billion and $2.2 billion, respectively.

Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

On January 1, 2019, we adopted a new accounting standard that amends the guidance for the accounting and reporting of leases. Certain required disclosures have been made on a prospective basis in accordance with the standard’s guidance. See Note 1, Summary of significant accounting policies.

We lease certain facilities and equipment related primarily to administrative, R&D and sales and marketing activities. Leases with terms of 12 months or less are expensed on a straight-line basis over the term and are not recorded in the Consolidated Balance Sheets.

Most leases include one or more options to renew, with renewal terms that may extend the lease term up to seven years. The exercise of lease renewal options is at our sole discretion. In addition, some of our lease agreements include rental payments adjusted periodically for inflation. Our lease agreements neither contain residual value guarantees nor impose significant restrictions or covenants. We sublease certain real estate to third parties. Our sublease portfolio consists of operating leases from former R&D and administrative space.

The following table summarizes information related to our leases, all of which are classified as operating, included in our Consolidated Balance Sheets (in millions):


	December 31,
Consolidated Balance Sheets locations	2020		2019
Assets:
Other assets	$	408	$	469
Liabilities:
Accrued liabilities	$	153	$	140
Other noncurrent liabilities	306		388
Total lease liabilities	$	459	$	528

The components of net lease costs were as follows (in millions):


	Years ended December 31,
Lease costs	2020		2019
Operating(1)	$	223	$	204






Sublease income	(34)		(33)
Total net lease costs	$	189	$	171

____________

(1) Includes short-term leases and variable lease costs, which were not material for the years ended December 31, 2020 and 2019.

Maturities of lease liabilities as of December 31, 2020, were as follows (in millions):


Maturity dates	Amounts
2021	$	164
2022	132
2023	105
2024	36
2025	15
Thereafter	36
Total lease payments(1)	488
Less imputed interest	(29)
Present value of lease liabilities	$	459

____________

(1) Includes future rental commitments for abandoned leases of $133 million. We expect to receive total future rental income of $107 million related to noncancelable subleases for abandoned facilities.

The weighted-average remaining lease terms and weighted-average discount rates were as follows:


	December 31,
	2020		2019
Weighted-average remaining lease term (in years)	3.7		4.1
Weighted-average discount rate	3.1	%	3.3	%

Cash and noncash information related to our leases was as follows (in millions):


	Years ended December 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	177	$	148


ROU assets obtained in exchange for lease obligations:
Operating leases	$	101	$	163

As of December 31, 2020, we have entered into leases that have not yet commenced, with total undiscounted future lease payments of $339 million. These leases will commence in 2021 with lease terms from 30 months to 15 years.

Rental expense on operating leases under the prior lease guidance for the year ended December 31, 2018, was $166 million.

Other current assets and accrued liabilities

12 Months Ended

Dec. 31, 2020

Payables and Accruals [Abstract]

Other current assets and accrued liabilities

Other current assets consisted of the following (in millions):


	December 31,
	2020		2019
Prepaid expenses	$	1,156	$	939
Corporate partner receivables	583		485
Tax receivables	216		186
Other	124		278
Total other current assets	$	2,079	$	1,888

Accrued liabilities consisted of the following (in millions):


	December 31,
	2020		2019
Sales deductions	$	4,801	$	3,880
Employee compensation and benefits	1,098		981
Dividends payable	1,018		946
Income taxes payable	828		557
Sales returns reserve	474		564
Other	1,922		1,583
Total accrued liabilities	$	10,141	$	8,511

Financing arrangements

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Financing arrangements

Our borrowings consisted of the following (in millions):


	December 31,
	2020		2019
4.50% notes due 2020 (4.50% 2020 Notes)	—		300
2.125% notes due 2020 (2.125% 2020 Notes)	—		750
Floating Rate Notes due 2020	—		300
2.20% notes due 2020 (2.20% 2020 Notes)	—		700
3.45% notes due 2020 (3.45% 2020 Notes)	—		900
4.10% notes due 2021 (4.10% 2021 Notes)	—		1,000
1.85% notes due 2021 (1.85% 2021 Notes)	—		750
3.875% notes due 2021 (3.875% 2021 Notes)	—		1,750
1.25% €1,250 million notes due 2022 (1.25% 2022 euro Notes)	1,527		1,402
2.70% notes due 2022 (2.70% 2022 Notes)	500		500
2.65% notes due 2022 (2.65% 2022 Notes)	1,500		1,500
3.625% notes due 2022 (3.625% 2022 Notes)	750		750
0.41% CHF700 million bonds due 2023 (0.41% 2023 Swiss franc Bonds)	791		725
2.25% notes due 2023 (2.25% 2023 Notes)	750		750
3.625% notes due 2024 (3.625% 2024 Notes)	1,400		1,400
1.90% notes due 2025 (1.90% 2025 Notes)	500		—
3.125% notes due 2025 (3.125% 2025 Notes)	1,000		1,000
2.00% €750 million notes due 2026 (2.00% 2026 euro Notes)	916		841
2.60% notes due 2026 (2.60% 2026 Notes)	1,250		1,250
5.50% £475 million notes due 2026 (5.50% 2026 pound sterling Notes)	649		630
2.20% notes due 2027 (2.20% 2027 Notes)	1,750		—
3.20% notes due 2027 (3.20% 2027 Notes)	1,000		1,000
4.00% £700 million notes due 2029 (4.00% 2029 pound sterling Notes)	957		928
2.45% notes due 2030 (2.45% 2030 Notes)	1,250		—
2.30% notes due 2031 (2.30% 2031 Notes)	1,250		—
6.375% notes due 2037 (6.375% 2037 Notes)	478		552
6.90% notes due 2038 (6.90% 2038 Notes)	254		291
6.40% notes due 2039 (6.40% 2039 Notes)	333		466
3.15% notes due 2040 (3.15% 2040 Notes)	2,000		—
5.75% notes due 2040 (5.75% 2040 Notes)	373		412
4.95% notes due 2041 (4.95% 2041 Notes)	600		600
5.15% notes due 2041 (5.15% 2041 Notes)	729		974
5.65% notes due 2042 (5.65% 2042 Notes)	415		487
5.375% notes due 2043 (5.375% 2043 Notes)	185		261
4.40% notes due 2045 (4.40% 2045 Notes)	2,250		2,250
4.563% notes due 2048 (4.563% 2048 Notes)	1,415		1,415
3.375% notes due 2050 (3.375% 2050 Notes)	2,250		—
4.663% notes due 2051 (4.663% 2051 Notes)	3,541		3,541
2.77% notes due 2053 (2.77% 2053 Notes)	940		—
Other notes due 2097	100		100
Unamortized bond discounts, premiums and issuance costs, net	(1,188)		(868)
Fair value adjustments	566		296
Other	5		—
Total carrying value of debt	32,986		29,903
Less current portion	(91)		(2,953)
Total long-term debt	$	32,895	$	26,950

There are no material differences between the effective interest rates and the coupon rates of any of our borrowings, except for the 4.563% 2048 Notes, the 4.663% 2051 Notes and the 2.77% 2053 Notes, which have effective interest rates of 6.3%, 5.6% and 5.2%, respectively.

Under the terms of all of our outstanding notes, except our Other notes due 2097, in the event of a change-in-control triggering event we may be required to purchase all or a portion of these debt securities at prices equal to 101% of the principal amounts of the notes plus accrued and unpaid interest. In addition, all of our outstanding notes—except our 0.41% 2023 Swiss franc Bonds and Other notes due 2097—may be redeemed at any time at our option—in whole or in part—at the principal amounts of the notes being redeemed plus accrued and unpaid interest and make-whole amounts, which are defined by the terms of the notes. Certain of the redeemable notes do not require the payment of make-whole amounts if redeemed during a specified period of time immediately prior to the maturity of the notes. Such time periods range from one month to six months prior to maturity.

Debt issuances

During the year ended December 31, 2020, we issued debt securities in the following offerings:

•In February 2020, we issued $5.0 billion of debt consisting of $500 million of the 1.90% 2025 Notes, $750 million of the 2.20% 2027 Notes, $1.25 billion of the 2.45% 2030 Notes, $1.25 billion of the 3.15% 2040 Notes and $1.25 billion of the 3.375% 2050 Notes.

•In May 2020, we issued $4.0 billion of debt consisting of $1.0 billion of the 2.20% 2027 Notes, $750 million of the 3.15% 2040 Notes and $1.0 billion of the 3.375% 2050 Notes, which represents a further issuance of, and which forms a single series with, each of the corresponding series of notes issued in February 2020, and $1.25 billion of the 2.30% 2031 Notes.

We did not issue any debt or debt securities during the years ended December 31, 2019 and 2018.

Debt repayments/redemptions

We made debt repayments/redemptions during the years ended December 31, 2020, 2019 and 2018 as follows:

•In 2020, we repaid/redeemed $6.5 billion of debt, including the repayment at maturity of the $300 million aggregate principal amount of the 4.50% 2020 Notes, the $750 million aggregate principal amount of the 2.125% 2020 Notes, the $300 million Floating Rate Notes due 2020 and the $700 million aggregate principal amount of the 2.20% 2020 Notes. In connection with the redemption of the $900 million aggregate principal amount of the 3.45% 2020 Notes, the $1.0 billion aggregate principal balance of the 4.10% 2021 Notes, the $750 million aggregate principal balance of the 1.85% 2021 Notes and the $1.75 billion aggregate principal balance of the 3.875% 2021 Notes, we paid a total of $96 million in make-whole amounts plus associated accrued and unpaid interest, all of which was recognized in Interest expense, net, in the Consolidated Statements of Income.

•In 2019, we repaid $4.5 billion of debt, including the $1.4 billion aggregate principal amount of the 2.20% 2019 Notes, the $1.0 billion aggregate principal amount of the 5.70% 2019 Notes, the €675 million aggregate principal amount ($864 million upon settlement of the related cross-currency swap) of the 2.125% 2019 euro Notes, the $700 million aggregate principal amount of the 1.90% 2019 Notes and the $550 million Floating Rate Notes due 2019.

•In 2018, we repaid $1.1 billion of debt, including the $500 million aggregate principal amount of the 6.15% 2018 Notes and the €550 million aggregate principal amount of the 4.375% 2018 Notes revalued at $621 million upon maturity.

Interest rate swaps

To achieve a desired mix of fixed-rate and floating-rate debt, we entered into interest rate swap contracts that effectively converted fixed-rate interest coupons for certain of our debt issuances to floating LIBOR-based coupons over the lives of the respective notes. These interest rate swap contracts qualified and are designated as fair value hedges.

In connection with the redemption of certain of the notes discussed above, associated interest rate swap contracts with an aggregate notional value of $3.65 billion were terminated. In addition, because of historically low interest rates, during the year ended December 31, 2020, we terminated interest rate swaps with an aggregate notional amount of $5.2 billion that hedged the 3.625% 2024 Notes, the 2.60% 2026 Notes, the 4.663% 2051 Notes and portions of the 3.625% 2022 Notes and the 3.125% 2025 Notes, which resulted in the receipt of $576 million of cash and reduced counterparty credit risk. Immediately following the terminations of these contracts, we entered into new interest rate swap agreements at then-current interest rates on the same $5.2 billion principal amount of notes. See Note 18, Derivative instruments.

The effective interest rates on notes for which we have entered into interest rate swap contracts and the related notional amounts of these contracts were as follows (dollar amounts in millions):


	December 31, 2020			December 31, 2019
Notes	Notional amounts		Effective interest rates	Notional amounts		Effective interest rates
3.45% 2020 Notes	$	—	LIBOR + 1.1%	$	900	LIBOR + 1.1%
4.10% 2021 Notes	—		LIBOR + 1.7%	1,000		LIBOR + 1.7%
3.875% 2021 Notes	—		LIBOR + 2.0%	1,750		LIBOR + 2.0%
3.625% 2022 Notes	750		LIBOR + 2.7%	750		LIBOR + 1.6%
3.625% 2024 Notes	1,400		LIBOR + 3.2%	1,400		LIBOR + 1.4%
3.125% 2025 Notes	1,000		LIBOR + 1.8%	1,000		LIBOR + 0.9%
2.60% 2026 Notes	1,250		LIBOR + 1.8%	1,250		LIBOR + 0.3%
4.663% 2051 Notes(1)	1,500		LIBOR + 2.6%	1,500		LIBOR + 0.0%
Total notional amounts	$	5,900		$	9,550

____________

(1) Excludes an additional 1.5% of interest for the difference between the coupon rate paid to noteholders and the fixed rate received under the interest rate swap contracts.

Debt exchange

In 2020, we completed a private offering to exchange portions of certain outstanding senior notes due 2037 through 2043 (collectively, Old Notes), listed below, for the $940 million principal amount of the newly issued 2.77% 2053 Notes (the Exchange Offer).

The following principal amounts of each series of Old Notes were validly tendered and subsequently cancelled in connection with the Exchange Offer (in millions):


	Principal amount exchanged
6.375% 2037 Notes	$	74
6.90% 2038 Notes	37
6.40% 2039 Notes	133
5.75% 2040 Notes	39
5.15% 2041 Notes	245
5.65% 2042 Notes	72
5.375% 2043 Notes	76

The 2.77% 2053 Notes bear interest at a lower fixed coupon rate while requiring higher principal repayment at a later maturity date as compared to those of the Old Notes that were exchanged. There were no other significant changes to the terms between the Old Notes and the 2.77% 2053 Notes. In connection with the Exchange Offer, $85 million was paid to holders of the Old Notes (the cash consideration).

The Exchange Offer was accounted for as a debt modification, and accordingly, deferred financing costs and discounts associated with the Old Notes, the cash consideration and the $264 million discount associated with the 2.77% 2053 Notes are being accreted over the term of these newly issued notes and recorded as Interest expense, net, in the Consolidated Statements of Income.

Cross-currency swaps

In order to hedge our exposure to foreign currency exchange rate risk associated with certain of our long-term notes denominated in foreign currencies, we entered into cross-currency swap contracts. The terms of these contracts effectively convert the interest payments and principal repayments on our 1.25% 2022 euro Notes, 0.41% 2023 Swiss franc Bonds, 2.00% 2026 euro Notes, 5.50% 2026 pound sterling Notes and 4.00% 2029 pound sterling Notes from euros, pounds sterling and Swiss francs to U.S. dollars. These cross-currency swap contracts have been designated as cash flow hedges. For information regarding the terms of these contracts, see Note 18, Derivative instruments.

Shelf registration statement and other facilities

As of December 31, 2020, we have a commercial paper program that allows us to issue up to $2.5 billion of unsecured commercial paper to fund our working-capital needs. As of December 31, 2020 and 2019, we had no amounts outstanding under our commercial paper program.

In 2019, we amended and restated our $2.5 billion syndicated, unsecured, revolving credit agreement, which is available for general corporate purposes or as a liquidity backstop to our commercial paper program. The commitments under the revolving credit agreement may be increased by up to $750 million with the agreement of the banks. Each bank that is a party to the agreement has an initial commitment term of five years. This term may be extended for up to two additional one-year periods with the agreement of the banks. Annual commitment fees for this agreement are 0.09% of the unused portion of the facility based on our current credit rating. Generally, we would be charged interest for any amounts borrowed under this facility, based on our current credit rating, at (i) LIBOR plus 1% or (ii) the highest of (A) the syndication agent bank base commercial lending rate, (B) the overnight federal funds rate plus 0.50% or (C) one-month LIBOR plus 1%. The agreement contains provisions relating to the determination of successor rates to address the possible phase-out or unavailability of designated reference rates. As of December 31, 2020 and 2019, no amounts were outstanding under this facility.

In February 2020, we filed a shelf registration statement with the U.S. Securities and Exchange Commission that allows us to issue unspecified amounts of debt securities; common stock; preferred stock; warrants to purchase debt securities, common stock, preferred stock or depository shares; rights to purchase common stock or preferred stock; securities purchase contracts; securities purchase units; and depository shares. Under this shelf registration statement, all of the securities available for issuance may be offered from time to time with terms to be determined at the time of issuance. This shelf registration statement expires in February 2023.

Certain of our financing arrangements contain nonfinancial covenants. In addition, our revolving credit agreement includes a financial covenant, which requires us to maintain a specified minimum interest coverage ratio of (i) the sum of consolidated net income, interest expense, provision for income taxes, depreciation expense, amortization expense, unusual or nonrecurring charges and other noncash items (Consolidated EBITDA) to (ii) Consolidated Interest Expense, each as defined and described in the credit agreement. We were in compliance with all applicable covenants under these arrangements as of December 31, 2020.

Contractual maturities of debt obligations

The aggregate contractual maturities of all borrowings due subsequent to December 31, 2020, are as follows (in millions):


Maturity dates	Amounts
2021	$	—
2022	4,277
2023	1,541
2024	1,400
2025	1,500
Thereafter	24,890
Total	$	33,608

Interest costs

Interest costs are expensed as incurred except to the extent such interest is related to construction in progress, in which case interest is capitalized. Interest costs capitalized for the years ended December 31, 2020, 2019 and 2018, were not material. Interest paid, including the ongoing impact of interest rate and cross-currency swap contracts, during the years ended December 31, 2020, 2019 and 2018, were $1.2 billion, $1.3 billion and $1.5 billion, respectively.

Stockholders' equity

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Stockholders' equity

Stockholders’ equity

Stock repurchase program

Activity under our stock repurchase program, on a trade date basis, was as follows (in millions):


	Years ended December 31,
	2020			2019			2018
	Shares	Dollars		Shares*	Dollars		Shares*	Dollars
First quarter	4.3	$	933	15.9	$	3,031	56.4	$	10,787
Second quarter	2.6	591		13.1	2,349		18.2	3,190
Third quarter	3.0	752		6.2	1,170		8.7	1,713
Fourth quarter	5.3	1,221		5.1	1,090		11.1	2,165
Total stock repurchases	15.2	$	3,497	40.2	$	7,640	94.5	$	17,855

* Total shares do not add due to rounding.

In December 2019, our Board of Directors increased the amount authorized under our stock repurchase program by an additional $4.0 billion. As of December 31, 2020, $3.0 billion remained available under our stock repurchase program.

Dividends

Our Board of Directors declared quarterly dividends per share of $1.60, $1.45 and $1.32, which were paid in each of the four quarters of 2020, 2019 and 2018, respectively.

Historically, we have declared dividends in December of each year, which were paid in the first quarter of the following fiscal year and in March, July and October, which were paid in the second, third and fourth quarters, respectively, of the same fiscal year. Additionally, on December 16, 2020, the Board of Directors declared a quarterly cash dividend of $1.76 per share of common stock, which will be paid on March 8, 2021, to all stockholders of record as of the close of business on February 15, 2021.

Accumulated other comprehensive loss

The components of AOCI were as follows (in millions):


	Foreign currency translation		Cash flow hedges		Available-for-sale securities		Other		AOCI
Balance as of December 31, 2017	$	(529)	$	(6)	$	(144)	$	—	$	(679)
Cumulative effect of change in accounting principle, net of tax	—		—		(9)		—		(9)
Foreign currency translation adjustments	(141)		—		—		—		(141)
Unrealized gains (losses)	—		61		(556)		—		(495)
Reclassification adjustments to income	—		262		365		—		627
Other losses	—		—		—		(2)		(2)
Income taxes	—		(76)		6		—		(70)
Balance as of December 31, 2018	(670)		241		(338)		(2)		(769)

Foreign currency translation adjustments	(48)		—		—		—		(48)
Unrealized gains	—		127		424		—		551
Reclassification adjustments to income	—		(211)		(56)		—		(267)
Other losses	—		—		—		(5)		(5)
Income taxes	—		18		(8)		—		10
Balance as of December 31, 2019	(718)		175		22		(7)		(528)

Foreign currency translation adjustments	9		—		—		—		9
Unrealized (losses) gains	—		(61)		6		—		(55)
Reclassification adjustments to income	—		(501)		(33)		—		(534)
Other losses	—		—		—		(7)		(7)
Income taxes	—		124		6		—		130
Balance as of December 31, 2020	$	(709)	$	(263)	$	1	$	(14)	$	(985)

With respect to the table above, income tax expenses or benefits for unrealized gains and losses and the related reclassification adjustments to income for cash flow hedges were a $14 million benefit and a $110 million benefit in 2020, a $28 million expense and a $46 million benefit in 2019 and a $21 million expense and a $55 million expense in 2018, respectively. Income tax expenses or benefits for unrealized gains and losses and the related reclassification adjustments to income for available-for-sale securities were a $1 million expense and a $7 million benefit in 2020, a $22 million expense and a $14 million benefit in 2019 and a $9 million benefit and a $3 million expense in 2018, respectively.

Reclassifications out of AOCI and into earnings were as follows (in millions):


	Years ended December 31,
Components of AOCI	2020		2019		2018		Consolidated Statements of Income locations
Cash flow hedges:
Foreign currency contract gains (losses)	$	178	$	101	$	(21)	Product sales
Cross-currency swap contract gains (losses)	323		110		(241)		Interest and other income, net

	501		211		(262)		Income before income taxes
	(110)		(46)		55		Provision for income taxes
	$	391	$	165	$	(207)	Net income
Available-for-sale securities:
Net realized gains (losses)	$	33	$	56	$	(365)	Interest and other income, net
	(7)		(14)		3		Provision for income taxes
	$	26	$	42	$	(362)	Net income

Other

In addition to common stock, our authorized capital includes 5 million shares of preferred stock, $0.0001 par value. As of December 31, 2020 and 2019, no shares of preferred stock were issued or outstanding.

Fair value measurement

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Fair value measurement

To estimate the fair value of our financial assets and liabilities, we use valuation approaches within a hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing an asset or liability and are developed based on the best information available in the circumstances. The fair value hierarchy is divided into three levels based on the source of inputs as follows:


Level 1	—	Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access
Level 2	—	Valuations for which all significant inputs are observable either directly or indirectly—other than Level 1 inputs
Level 3	—	Valuations based on inputs that are unobservable and significant to the overall fair value measurement

The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used for measuring fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level of input used that is significant to the overall fair value measurement.

The fair values of each major class of the Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in millions):


Fair value measurement as of December 31, 2020, using:	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets:
Available-for-sale securities:
U.S. Treasury notes	$	130	$	—	$	—	$	130
U.S. Treasury bills	4,948		—		—		4,948
Corporate debt securities:
Financial	—		—		—		—
Industrial	—		—		—		—
Other	—		—		—		—
Residential-mortgage-backed securities	—		—		—		—

Money market mutual funds	4,765		—		—		4,765
Other short-term interest-bearing securities	—		2		—		2
Equity securities	477		—		—		477
Derivatives:
Foreign currency contracts	—		28		—		28
Cross-currency swap contracts	—		255		—		255
Interest rate swap contracts	—		66		—		66
Total assets	$	10,320	$	351	$	—	$	10,671
Liabilities:
Derivatives:
Foreign currency contracts	$	—	$	237	$	—	$	237
Cross-currency swap contracts	—		318		—		318
Interest rate swap contracts	—		15		—		15
Contingent consideration obligations	—		—		33		33
Total liabilities	$	—	$	570	$	33	$	603


Fair value measurement as of December 31, 2019, using:	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets:
Available-for-sale securities:
U.S. Treasury notes	$	360	$	—	$	—	$	360
U.S. Treasury bills	—		—		—		—
Corporate debt securities:
Financial	—		1,121		—		1,121
Industrial	—		834		—		834
Other	—		198		—		198
Residential-mortgage-backed securities	—		182		—		182

Money market mutual funds	5,250		—		—		5,250
Other short-term interest-bearing securities	—		289		—		289
Equity securities	303		—		—		303
Derivatives:
Foreign currency contracts	—		224		—		224
Cross-currency swap contracts	—		66		—		66
Interest rate swap contracts	—		259		—		259
Total assets	$	5,913	$	3,173	$	—	$	9,086
Liabilities:
Derivatives:
Foreign currency contracts	$	—	$	31	$	—	$	31
Cross-currency swap contracts	—		315		—		315
Interest rate swap contracts	—		—		—		—
Contingent consideration obligations	—		—		61		61
Total liabilities	$	—	$	346	$	61	$	407

Interest-bearing and equity securities

The fair values of our U.S. Treasury securities, money market mutual funds and equity securities are based on quoted market prices in active markets, with no valuation adjustment.

We estimate the fair values of our corporate debt securities by taking into consideration valuations obtained from third-party pricing services. The pricing services use industry-standard valuation models, including both income- and market-based approaches, for which all significant inputs are observable either directly or indirectly to estimate fair value. The inputs include reported trades of and broker-dealer quotes on the same or similar securities; issuer credit spreads; benchmark securities; and other observable inputs.

We estimate the fair values of our residential-mortgage-backed securities by taking into consideration valuations obtained from third-party pricing services. The pricing services use industry-standard valuation models, including both income- and market-based approaches, for which all significant inputs are observable either directly or indirectly to estimate fair value. The inputs include reported trades of and broker-dealer quotes on the same or similar securities; issuer credit spreads; benchmark securities; prepayment or default projections based on historical data; and other observable inputs.

We value our other short-term interest-bearing securities at amortized cost, which approximates fair value given their near-term maturity dates.

Derivatives

All of our foreign currency forward and option derivative contracts have maturities of three years or less, and all are with counterparties that have minimum credit ratings of A– or equivalent by Standard & Poor’s Financial Services (S&P), Moody’s Investors Service, Inc. (Moody’s) or Fitch Ratings, Inc. (Fitch). We estimate the fair values of these contracts by taking into consideration valuations obtained from a third-party valuation service that uses an income-based industry-standard valuation model for which all significant inputs are observable either directly or indirectly. These inputs include foreign currency exchange rates, LIBOR, swap rates and obligor credit default swap rates. In addition, inputs for our foreign currency option contracts include implied volatility measures. These inputs, when applicable, are at commonly quoted intervals. See Note 18, Derivative instruments.

Our cross-currency swap contracts are with counterparties that have minimum credit ratings of A– or equivalent by S&P, Moody’s or Fitch. We estimate the fair values of these contracts by taking into consideration valuations obtained from a third-party valuation service that uses an income-based industry-standard valuation model for which all significant inputs are observable either directly or indirectly. These inputs include foreign currency exchange rates, LIBOR, swap rates, obligor credit default swap rates and cross-currency basis swap spreads. See Note 18, Derivative instruments.

Our interest rate swap contracts are with counterparties that have minimum credit ratings of A– or equivalent by S&P, Moody’s or Fitch. We estimate the fair values of these contracts by using an income-based industry-standard valuation model for which all significant inputs are observable either directly or indirectly. These inputs include LIBOR, swap rates and obligor credit default swap rates. See Note 18, Derivative instruments.

During the years ended December 31, 2020 and 2019, there were no transfers of assets or liabilities between fair value measurement levels, and there were no material remeasurements to the fair values of assets and liabilities that are not measured at fair value on a recurring basis. During the year ended December 31, 2018, we discontinued the internal development of a program that resulted in an impairment of an IPR&D asset of $330 million, which was recognized in Other operating expenses in the Consolidated Statements of Income and included in Other items, net, in the Consolidated Statements of Cash Flows.

Summary of the fair values of other financial instruments

Cash equivalents

The fair values of cash equivalents approximate their carrying values due to the short-term nature of such financial instruments.

Borrowings

We estimated the fair values of our borrowings by using Level 2 inputs. As of December 31, 2020 and 2019, the aggregate fair values of our borrowings were $39.4 billion and $33.7 billion, respectively, and the carrying values were $33.0 billion and $29.9 billion, respectively.

Investment in BeiGene

We estimated the fair value of our investment in BeiGene by using Level 1 inputs. As of December 31, 2020, the fair value and carrying value were $4.9 billion and $2.9 billion, respectively.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivative instruments

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative instruments

The Company is exposed to foreign currency exchange rate and interest rate risks related to its business operations. To reduce our risks related to such exposures, we use or have used certain derivative instruments, including foreign currency forward, foreign currency option, cross-currency swap, forward interest rate and interest rate swap contracts. We do not use derivatives for speculative trading purposes.

Cash flow hedges

We are exposed to possible changes in the values of certain anticipated foreign currency cash flows resulting from changes in foreign currency exchange rates associated primarily with our euro-denominated international product sales. Increases and decreases in the cash flows associated with our international product sales due to movements in foreign currency exchange rates are partially offset by corresponding increases and decreases in the cash flows from our international operating expenses resulting from these foreign currency exchange rate movements. To further reduce our exposure to foreign currency exchange rate fluctuations with regard to our international product sales, we enter into foreign currency forward and option contracts to hedge a portion of our projected international product sales primarily over a three-year time horizon, with, at any given point in time, a higher percentage of nearer-term projected product sales being hedged than in successive periods.

As of December 31, 2020, 2019 and 2018, we had outstanding foreign currency forward contracts with aggregate notional amounts of $5.1 billion, $5.0 billion and $4.5 billion, respectively. As of December 31, 2018 we had outstanding foreign currency option contracts with aggregate notional amounts of $21 million, and no such outstanding contracts as of December 31, 2020 and 2019. We have designated these foreign currency forward and foreign currency option contracts, which are primarily euro based, as cash flow hedges. Accordingly, we report the unrealized gains and losses on these contracts in AOCI in the Consolidated Balance Sheets, and we reclassify them to Product sales in the Consolidated Statements of Income in the same periods during which the hedged transactions affect earnings.

To hedge our exposure to foreign currency exchange rate risk associated with certain of our long-term debt denominated in foreign currencies, we enter into cross-currency swap contracts. Under the terms of such contracts, we paid euros, pounds sterling and Swiss francs and received U.S. dollars for the notional amounts at the inception of the contracts; and based on these notional amounts, we exchange interest payments at fixed rates over the lives of the contracts by paying U.S. dollars and receiving euros, pounds sterling and Swiss francs. In addition, we will pay U.S. dollars to and receive euros, pounds sterling and Swiss francs from the counterparties at the maturities of the contracts for these same notional amounts. The terms of these contracts correspond to the related hedged debt, thereby effectively converting the interest payments and principal repayment on the debt from euros, pounds sterling and Swiss francs to U.S. dollars. We have designated these cross-currency swap contracts as cash flow hedges. Accordingly, the unrealized gains and losses on these contracts are reported in AOCI in the Consolidated Balance Sheets and reclassified to Interest and other income, net, in the Consolidated Statements of Income in the same periods during which the hedged debt affects earnings.

The notional amounts and interest rates of our cross-currency swaps as of December 31, 2020, were as follows (notional amounts in millions):


	Foreign currency				U.S. dollars
Hedged notes	Notional amounts		Interest rates		Notional amounts		Interest rates

1.25% 2022 euro Notes	€	1,250	1.3	%	$	1,388	3.2	%
0.41% 2023 Swiss franc Bonds	CHF	700	0.4	%	$	704	3.4	%
2.00% 2026 euro Notes	€	750	2.0	%	$	833	3.9	%
5.50% 2026 pound sterling Notes	£	475	5.5	%	$	747	6.0	%
4.00% 2029 pound sterling Notes	£	700	4.0	%	$	1,111	4.5	%

During the year ended December 31, 2019, our 2.125% 2019 euro Notes matured, and the related cross-currency swaps were settled.

In connection with the anticipated issuance of long-term fixed-rate debt, we occasionally enter into forward interest rate contracts in order to hedge the variability in cash flows due to changes in the applicable U.S. Treasury rate between the time we enter into these contracts and the time the related debt is issued. Gains and losses on forward interest rate contracts, which are designated as cash flow hedges, are recognized in AOCI in the Consolidated Balance Sheets and are amortized into Interest expense, net, in the Consolidated Statements of Income over the lives of the associated debt issuances. Amounts recognized in connection with forward interest rate swaps during the year ended December 31, 2020, and amounts expected to be recognized during the subsequent 12 months are not material.

The unrealized losses and gains recognized in AOCI for our derivative instruments designated as cash flow hedges were as follows (in millions):


	Years ended December 31,
Derivatives in cash flow hedging relationships	2020		2019		2018
Foreign currency contracts	$	(251)	$	148	$	348
Cross-currency swap contracts	190		(21)		(287)
Forward interest rate contracts	—		—		—
Total unrealized (losses) gains	$	(61)	$	127	$	61

Fair value hedges

To achieve a desired mix of fixed-rate and floating-rate debt, we entered into interest rate swap contracts that qualified for and were designated as fair value hedges. These interest rate swap contracts effectively convert fixed-rate coupons to floating-rate LIBOR-based coupons over the terms of the related hedge contracts. As of December 31, 2020 and 2019, we had interest rate swap contracts with aggregate notional amounts of $5.9 billion and $9.6 billion, respectively, that hedge certain portions of our long-term debt issuances.

Interest rate swaps with an aggregate notional value of $3.7 billion were terminated during the year ended December 31, 2020, in connection with the redemption of certain of our notes. The terminations of these interest rate swaps resulted in a gain of $40 million, recognized in Interest expense, net, in the Consolidated Statements of Income. Additionally, we terminated $5.2 billion aggregate notional amount of interest rate swaps, which resulted in the receipt of $576 million from the counterparties that was included in Net cash provided by operating activities in the Consolidated Statements of Cash Flows for the year ended December 31, 2020. This amount will be recognized as a reduction in Interest expense, net, in the Consolidated Statements of Income over the remaining life of the underlying notes. Immediately following the terminations of these interest rate swap contracts, we entered into new interest rate swap agreements at then-current interest rates on the same $5.2 billion principal amount of notes. See Note 15, Financing arrangements, for information on our interest rate swaps.

For interest rate swap contracts that qualify for and are designated as fair value hedges, we recognize in Interest expense, net, in the Consolidated Statements of Income the unrealized gain or loss on the derivative resulting from the change in fair value during the period, as well as the offsetting unrealized loss or gain of the hedged item resulting from the change in fair value during the period attributable to the hedged risk. If a hedging relationship involving an interest rate swap contract is terminated, the gain or loss realized on contract termination is recorded as an adjustment to the carrying value of the debt and amortized into Interest expense, net, over the remaining life of the previously hedged debt.

The hedged liabilities and related cumulative-basis adjustments for fair value hedges of those liabilities were recorded in the Consolidated Balance Sheets as follows (in millions):


	Carrying amounts of hedged liabilities(1)				Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities(2)
	December 31,				December 31,
Consolidated Balance Sheets locations	2020		2019		2020		2019
Current portion of long-term debt	$	89	$	903	$	89	$	4
Long-term debt	$	6,258	$	8,814	$	477	$	292

____________

(1)Current portion of long-term debt includes $89 million of carrying value with discontinued hedging relationships as of December 31, 2020. Long-term debt includes $525 million and $136 million of carrying value with discontinued hedging relationships as of December 31, 2020, and December 31, 2019, respectively.

(2)Current portion of long-term debt includes $89 million of hedging adjustments on discontinued hedging relationships as of December 31, 2020. Long-term debt includes $425 million and $36 million of hedging adjustments on discontinued hedging relationships as of December 31, 2020, and December 31, 2019, respectively.

Impact of hedging transactions

The following tables summarize the amounts recorded in income and expense line items and the effects thereon from fair value and cash flow hedging, including discontinued hedging relationships (in millions):


	Year ended December 31, 2020
	Product sales		Interest and other income, net		Interest (expense), net
Total amounts recorded in income and (expense) line items presented in the Consolidated Statements of Income	$	24,240	$	256	$	(1,262)
The effects of cash flow and fair value hedging:
Gains on cash flow hedging relationships reclassified out of AOCI:
Foreign currency contracts	$	178	$	—	$	—
Cross-currency swap contracts	$	—	$	323	$	—
Gains (losses) on fair value hedging relationships—interest rate swap agreements:
Hedged items(1)	$	—	$	—	$	315
Derivatives designated as hedging instruments	$	—	$	—	$	(204)


	Year ended December 31, 2019
	Product sales		Interest and other income, net		Interest (expense), net
Total amounts recorded in income and (expense) line items presented in the Consolidated Statements of Income	$	22,204	$	753	$	(1,289)
The effects of cash flow and fair value hedging:
Gains on cash flow hedging relationships reclassified out of AOCI:
Foreign currency contracts	$	101	$	—	$	—
Cross-currency swap contracts	$	—	$	110	$	—
(Losses) gains on fair value hedging relationships—interest rate swap agreements:
Hedged items(1)	$	—	$	—	$	(349)
Derivatives designated as hedging instruments	$	—	$	—	$	352


	Year ended December 31, 2018
	Product sales		Interest and other income (expense), net		Interest (expense), net
Total amounts recorded in income and (expense) line items presented in the Consolidated Statements of Income	$	22,533	$	674	$	(1,392)
The effects of cash flow and fair value hedging:
(Losses) on cash flow hedging relationships reclassified out of AOCI:
Foreign currency contracts	$	(21)	$	—	$	—
Cross-currency swap contracts	$	—	$	(241)	$	—

Gains (losses) on fair value hedging relationships—interest rate swap agreements:
Hedged items(1)	$	—	$	—	$	65
Derivatives designated as hedging instruments	$	—	$	—	$	(42)

__________

(1) Gains on hedged items do not completely offset losses on the related designated hedging instruments due to amortization of the cumulative amounts of fair value hedging adjustments included in the carrying amount of the hedged debt for discontinued hedging relationships and the recognition of gains on terminated hedges where the corresponding hedged item was paid down in the period.

No portions of our cash flow hedge contracts were excluded from the assessment of hedge effectiveness. As of December 31, 2020, we expected to reclassify $136 million of net losses on our foreign currency and cross-currency swap contracts out of AOCI and into earnings during the next 12 months.

Derivatives not designated as hedges

To reduce our exposure to foreign currency fluctuations in certain assets and liabilities denominated in foreign currencies, we enter into foreign currency forward contracts that are not designated as hedging transactions. Most of these exposures are hedged on a month-to-month basis. As of December 31, 2020, 2019 and 2018, the total notional amounts of these foreign currency forward contracts were $1.0 billion, $1.2 billion and $737 million, respectively. Gains and losses recognized in earnings for our derivative instruments not designated as hedging instruments were not material for the years ended December 31, 2020, 2019 and 2018.

The fair values of derivatives included in the Consolidated Balance Sheets were as follows (in millions):


	Derivative assets			Derivative liabilities
December 31, 2020	Consolidated Balance Sheets locations	Fair values		Consolidated Balance Sheets locations	Fair values
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current assets/ Other assets	$	28	Accrued liabilities/ Other noncurrent liabilities	$	237
Cross-currency swap contracts	Other current assets/ Other assets	255		Accrued liabilities/ Other noncurrent liabilities	318
Interest rate swap contracts	Other current assets/ Other assets	66		Accrued liabilities/ Other noncurrent liabilities	15
Total derivatives designated as hedging instruments		349			570
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets	—		Accrued liabilities	—
Total derivatives not designated as hedging instruments		—			—
Total derivatives		$	349		$	570

	Derivative assets			Derivative liabilities
December 31, 2019	Consolidated Balance Sheets locations	Fair values		Consolidated Balance Sheets locations	Fair values
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current assets/ Other assets	$	223	Accrued liabilities/ Other noncurrent liabilities	$	31
Cross-currency swap contracts	Other current assets/ Other assets	66		Accrued liabilities/ Other noncurrent liabilities	315
Interest rate swap contracts	Other current assets/ Other assets	259		Accrued liabilities/ Other noncurrent liabilities	—
Total derivatives designated as hedging instruments		548			346
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets	1		Accrued liabilities	—
Total derivatives not designated as hedging instruments		1			—
Total derivatives		$	549		$	346

Our derivative contracts that were in liability positions as of December 31, 2020, contain certain credit-risk-related contingent provisions that would be triggered if (i) we were to undergo a change in control and (ii) our, or the surviving entity’s, creditworthiness deteriorates, which is generally defined as having either a credit rating that is below investment grade or a materially weaker creditworthiness after the change in control. If these events were to occur, the counterparties would have the right but not the obligation to close the contracts under early-termination provisions. In such circumstances, the counterparties could request immediate settlement of these contracts for amounts that approximate the then current fair values of the contracts. In addition, our derivative contracts are not subject to any type of master netting arrangement, and amounts due either to or from a counterparty under the contracts may be offset against other amounts due either to or from the same counterparty only if an event of default or termination, as defined, were to occur.The cash flow effects of our derivative contracts in the Consolidated Statements of Cash Flows are included in Net cash provided by operating activities, except for the settlement of notional amounts of cross-currency swaps, which are included in Net cash used in financing activities.

Contingencies and commitments

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Contingencies and commitments

Contingencies

In the ordinary course of business, we are involved in various legal proceedings, government investigations and other matters that are complex in nature and have outcomes that are difficult to predict. See Part I, Item 1A. Risk Factors—Our business may be affected by litigation and government investigations. We describe our legal proceedings and other matters that are significant or that we believe could become significant in this footnote.

We record accruals for loss contingencies to the extent that we conclude it is probable that a liability has been incurred and the amount of the related loss can be reasonably estimated. We evaluate, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase or decrease in the amount of the liability that has been accrued previously.

Our legal proceedings involve various aspects of our business and a variety of claims, some of which present novel factual allegations and/or unique legal theories. In each of the matters described in this filing, in which we could incur a liability, our opponents seek an award of a not-yet-quantified amount of damages or an amount that is not material. In addition, a number of the matters pending against us are at very early stages of the legal process, which in complex proceedings of the sort we face often extend for several years. As a result, none of the matters described in this filing, in which we could incur a liability, have progressed sufficiently through discovery and/or the development of important factual information and legal issues to enable us to estimate a range of possible loss, if any, or such amounts are not material. While it is not possible to accurately predict or determine the eventual outcomes of these matters, an adverse determination in one or more of these matters currently pending could have a material adverse effect on our consolidated results of operations, financial position or cash flows.

Certain recent developments concerning our legal proceedings and other matters are discussed below:

Abbreviated New Drug Application (ANDA) Patent Litigation

KYPROLIS® ANDA Patent Litigation

Onyx Therapeutics, Inc. v. Cipla Limited, et al.

Between October 2016 and April 2018, Onyx Therapeutics, Inc. (Onyx Therapeutics, a wholly-owned subsidiary of Amgen), filed separate lawsuits in the U.S. District Court for the District of Delaware (the Delaware District Court) against: (1) Cipla Limited and Cipla USA, Inc. (collectively, Cipla); (2) Sagent Pharmaceuticals, Inc. (Sagent); (3) Breckenridge Pharmaceutical, Inc. (Breckenridge); and (4) Fresenius Kabi, USA LLC, Fresenius Kabi USA, Inc., Fresenius Kabi Pharmaceuticals Holding, Inc. and Fresenius Kabi Oncology Limited; (5) Teva Pharmaceuticals USA, Inc. and Teva Pharmaceutical Industries Ltd.; (6) MSN Laboratories Private Limited and MSN Pharmaceuticals, Inc. (collectively, MSN); (7) Dr. Reddy’s Laboratories, Ltd. and Dr. Reddy’s Laboratories, Inc. (collectively, DRL); (8) Qilu Pharma, Inc. and Qilu Pharmaceutical Co. Ltd. (collectively, Qilu); (9) Apotex Inc. and Apotex Corp. (Apotex); (10) InnoPharma, Inc. (InnoPharma); and (11) Aurobindo Pharma USA, Inc., each for infringement of one or more of our following patents, which are listed in the Approved Drug Products with Therapeutic Equivalence Evaluations (the Orange Book) for KYPROLIS®: U.S. Patent Nos. 7,232,818 (the ’818 Patent), 7,417,042 (the ’042 Patent), 7,491,704 (the ’704 Patent), 7,737,112 (the ’112 Patent), 8,129,346 (the ’346 Patent), 8,207,125 (the ’125 Patent), 8,207,126 (the ’126 Patent), 8,207,127 (the ’127 Patent) and 8,207,297 (the ’297 Patent). Each of these lawsuits was based on each defendant’s submission of an ANDA seeking U.S. Food and Drug Administration (FDA) approval to market a generic version of KYPROLIS®. In each lawsuit, Onyx Therapeutics sought an order of the Delaware District Court making any FDA approval of the respective defendant’s ANDA effective no earlier than the expiration of the applicable patents. The Delaware District Court consolidated these lawsuits for purposes of discovery into a single case, Onyx Therapeutics, Inc. v. Cipla Limited, et al.

In January 2017, by stipulation with Onyx Therapeutics, Fresenius Kabi Pharmaceuticals Holding, Inc. and Fresenius Kabi Oncology Limited were dismissed from the lawsuit, leaving Fresenius Kabi, USA LLC and Fresenius Kabi USA, Inc. (collectively, Fresenius) as the remaining Fresenius defendants. In September 2017 and February 2018, respectively, by joint stipulation with Onyx Therapeutics, Teva Pharmaceutical Industries Ltd. and Teva Pharmaceuticals USA, Inc. were each dismissed from the lawsuit, and in February 2018, Qilu was dismissed from the lawsuit by joint stipulation between Onyx Therapeutics and Qilu. Between April and July of 2018, the Delaware District Court entered orders on stipulations between Onyx Therapeutics and each of Apotex, DRL, Sagent, Fresenius, Breckenridge, Aurobindo Pharma USA, Inc., Cipla and InnoPharma, respectively, that each defendant infringes the ’042, ’112, ’125, ’126 and ’127 Patents. Onyx Therapeutics provided those defendants, either through a stipulated order or other agreement, a covenant that it would not assert patent infringement of the ’818,’704,’346 and ’297 Patents against certain of the respective defendants’ ANDA applications and products. In June 2018, the Delaware District Court entered an order on a stipulation between Onyx Therapeutics and MSN that MSN infringes the ’112 Patent. In December 2018, Apotex, DRL, Fresenius, InnoPharma, Sagent, Breckenridge, Aurobindo Pharma USA, Inc. and Cipla amended their responses to the complaints to add the defense of unclean hands and to seek declarations of unenforceability of the asserted patents based on allegations of inequitable conduct. In January 2019, MSN amended its responses to the complaints to add the defense of unclean hands.

On January 11, 2019, Onyx Therapeutics filed a separate lawsuit in the Delaware District Court against Breckenridge for infringement of the ’042, ’112 and ’125 Patents in connection with its ANDA that seeks approval to market generic versions of KYPROLIS®. On March 4, 2019, the Delaware District Court entered an order on a stipulation between Onyx Therapeutics and Breckenridge, providing that Breckenridge infringes the asserted claims of the ’042, ’112 and ’125 Patents, and consolidated this lawsuit against Breckenridge into the existing consolidated case, Onyx Therapeutics, Inc. v. Cipla Limited, et al., for all purposes.

On May 6, 2019, the Delaware District Court commenced trial in the Onyx Therapeutics, Inc. v. Cipla Limited, et al. consolidated case. During trial, the Delaware District Court signed consent judgments filed by Onyx Therapeutics and each of Aurobindo Pharma USA, Inc., InnoPharma, Sagent, Apotex, Fresenius, DRL and Breckenridge, in which the parties stipulated to entry of: (1) judgment dismissing with prejudice all of the parties’ claims, counterclaims, affirmative defenses and demands; and (2) an injunction prohibiting infringement of the ’042, ’112 and ’125 Patents by the manufacture, use, sale, offer to sell or importation into the United States of the applicable defendant’s carfilzomib product unless specifically authorized pursuant to the applicable confidential settlement agreement. During trial, the Delaware District Court also entered a consent judgment between Onyx Therapeutics and MSN, in which the parties stipulated to entry of: (1) judgment dismissing with prejudice all of the parties’ claims, counterclaims, affirmative defenses and demands; and (2) an injunction prohibiting infringement of the ’112 Patent by the manufacture, use, sale, offer to sell or importation into the United States of MSN’s carfilzomib product unless specifically authorized pursuant to the confidential settlement agreement. On May 16, 2019, trial concluded between Onyx Therapeutics and the lone remaining defendant, Cipla.

On May 8, 2020, consistent with its May 4, 2020 decision and order, the Delaware District Court entered final judgment in favor of Onyx Therapeutics and against Cipla on infringement, validity and enforceability of claims 23 and 24 of the ’042 Patent, claim 1 of the ’125 Patent and claim 31 of the ’112 Patent. The Delaware District Court entered judgment in favor of Cipla and against Onyx Therapeutics on Cipla’s counterclaim for invalidity of claim 32 of the ’112 Patent and ordered that the effective date of any final approval by the FDA of Cipla’s ANDA must be after expiration of the three asserted patents (the ’042, ’125 and ’112 Patents) and any regulatory exclusivity to which Onyx Therapeutics may become entitled. The final judgment includes an injunction prohibiting Cipla from making, using, offering to sell, selling or importing into the United States Cipla’s carfilzomib product during the term of the three asserted patents. On May 29, 2020, Cipla filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit (the Federal Circuit Court). The Federal Circuit Court has set the hearing date on Cipla’s appeal for March 5, 2021.

Otezla® ANDA Patent Litigation

Amgen Inc. v. Sandoz Inc., et al.

Beginning in June 2018, Celgene filed 19 separate lawsuits in the U.S. District Court for the District of New Jersey (the New Jersey District Court) against Alkem Laboratories Ltd. (Alkem); Amneal Pharmaceuticals LLC; Annora Pharma Private Ltd. and Hetero USA Inc. (collectively, Hetero); Aurobindo Pharma Ltd. and Aurobindo Pharma USA Inc. (collectively, Aurobindo); Cipla Limited (Cipla Ltd); DRL; Emcure Pharmaceuticals Ltd. and Heritage Pharmaceuticals Inc. (collectively, Emcure); Glenmark Pharmaceuticals Ltd. (Glenmark); Macleods Pharmaceuticals Ltd. (Macleods); Mankind Pharma Ltd. (Mankind); MSN Laboratories Private Limited; Pharmascience Inc. (Pharmascience); Prinston Pharmaceutical Inc. (Prinston); Sandoz Inc.; Shilpa Medicare Ltd. (Shilpa); Teva Pharmaceuticals USA, Inc. and Actavis LLC (collectively, Actavis); Torrent Pharmaceuticals Ltd. (Torrent); Unichem Laboratories, Ltd. (Unichem); and Zydus Pharmaceuticals (USA) Inc., each for infringement of one or more of the following patents: U.S. Patent Nos. 6,962,940 (the ’940 Patent), 7,208,516 (the ’516 Patent), 7,427,638 (the ’638 Patent), 7,659,302 (the ’302 Patent), 7,893,101 (the ’101 Patent), 8,455,536 (the ’536 Patent), 8,802,717 (the ’717 Patent), 9,018,243 (the ’243 Patent) and 9,872,854 (the ’854 Patent), which are listed in the Orange Book for Otezla®. Each of the defendants is seeking to market a generic version of Otezla® before expiration of the asserted patents. The New Jersey District Court consolidated these 19 lawsuits for discovery and case management purposes into a single case, Celgene Corp. v. Sandoz Inc., et al. Each lawsuit seeks an order of the New Jersey District Court making any FDA approval of the respective defendant’s ANDA effective no earlier than the expiration of the applicable patents.

In August 2018, Celgene filed amended complaints against Alkem, Amneal Pharmaceuticals LLC, Aurobindo, Cipla Ltd, DRL, Glenmark, Pharmascience, Sandoz Inc., Actavis, Unichem and Zydus Pharmaceuticals (USA) Inc. additionally asserting U.S. Patent No. 9,724,330 (the ’330 Patent), which is listed in the Orange Book for Otezla®. Between October 15 and November 27, 2018, Celgene filed amended complaints against Alkem, Amneal Pharmaceuticals LLC, Hetero, Aurobindo, Cipla Ltd, DRL, Emcure, Glenmark, Macleods, Mankind, MSN Laboratories Private Limited, Pharmascience, Prinston, Sandoz Inc., Actavis, Torrent, Unichem and Zydus Pharmaceuticals (USA) Inc. additionally asserting U.S. Patent No. 10,092,541 (the ’541 Patent), which is listed in the Orange Book for Otezla®. Between March 1 and April 4, 2019, Celgene filed amended complaints against Hetero, MSN Laboratories Private Limited and Emcure for infringement of one or more of the above-listed patents. On October 1, 2019, Celgene filed an amended complaint against Mankind for infringement of the ’940, ’302, ’536, ’243 and ’330 Patents. On October 8, 2019, Celgene filed a separate lawsuit against Zydus Pharmaceuticals (USA) Inc. in the New Jersey District Court for infringement of U.S. Patent Nos. 8,093,283 (the ’283 Patent) and 8,629,173 (the ’173 Patent), which are not listed in the Orange Book for Otezla®. On December 19, 2019, the New Jersey District Court consolidated this lawsuit for discovery and case management purposes into the existing consolidated case, Celgene Corp. v. Sandoz Inc., et al. Each defendant has filed an answer to the above-listed complaints and amended complaints disputing infringement and/or validity of the patents asserted against it. Along with their answers, each of Alkem, Hetero, Cipla Ltd, DRL, Emcure, Glenmark, Macleods, Mankind, Pharmascience, Sandoz Inc., Shilpa, Actavis, Torrent, Unichem and Zydus Pharmaceuticals (USA) Inc. filed declaratory judgment counterclaims asserting that some or all of the patents are not infringed and/or are invalid. In August 2019, based on a joint request by Celgene and Glenmark, the New Jersey District Court entered a consent judgment and injunction prohibiting the making, having made, using, selling, offering to sell, importing, or distributing of Glenmark’s apremilast product during the term of the ’940, ’638, ’302, ’101, ’536, ’243, ’330 and ’541 Patents, unless authorized pursuant to a confidential settlement agreement.

Following Amgen’s acquisition of the patents-in-suit and the new drug application for Otezla®, on February 14, 2020, the New Jersey District Court issued an order substituting Amgen for Celgene as plaintiff in the consolidated action and all related actions, terminating Celgene as plaintiff in the consolidated action and all related actions, and amending the case caption in the consolidated action and all related actions to reflect Amgen as the sole plaintiff.

On March 25, 2020, based on a joint request by Amgen and Unichem, the New Jersey District Court entered a consent judgment and injunction prohibiting the making, using, selling, offering to sell, or importing of Unichem’s apremilast product during the term of the ’940, ’638, ’302, ’101, ’536, ’243, ’330 and ’541 Patents, unless authorized pursuant to a confidential settlement agreement. On April 3, 2020, based on a joint request by Amgen and Hetero, the New Jersey District Court entered a consent judgment and injunction prohibiting the making, using, selling, offering to sell, or importing of Hetero’s apremilast product during the term of the ’940, ’516, ’638, ’302, ’101, ’536, ’717, ’243, ’330, ’854 and ’541 Patents, unless authorized pursuant to a confidential settlement agreement. On May 28, 2020, based on a joint request by Amgen and Emcure, the New Jersey District Court entered a consent judgment and injunction prohibiting the making, using, selling, offering to sell, or importing of Emcure’s apremilast product during the term of the ’638, ’101, ’854 and ’541 Patents unless authorized pursuant to a confidential settlement agreement. On July 7, 2020, the New Jersey District Court ordered a stipulated dismissal without prejudice of all claims, counterclaims, and affirmative defenses between Amgen and Sandoz Inc. with respect to the ’717, ’516 and ’854 Patents, leaving the ’940, ’302, ’536, ’243, ’330, ’638, ’101 and ’541 Patents asserted by Amgen against Sandoz Inc. in the litigation. On August 6, 2020, based on a joint request by Amgen and Mankind, the New Jersey District Court entered a consent judgment and injunction prohibiting the making, using, selling, offering to sell, or importing of Mankind’s apremilast product during the term of the ’940, ’302, ’536, ’243, ’330, ’638, ’101 and ’541 Patents, unless authorized pursuant to a confidential settlement agreement. On August 14, 2020, based on a joint request by Amgen and Macleods, the New Jersey District Court entered a consent judgment and injunction prohibiting the making, using, selling, offering to sell, or importing of Macleods’ apremilast product during the term of the ’638 and ’541 Patents, unless authorized pursuant to a confidential settlement agreement. On October 7, 2020, based on a joint request by Amgen and Amneal Pharmaceuticals LLC, the New Jersey District Court entered a consent judgment and injunction prohibiting the making, using, selling, offering to sell, or importing of Amneal Pharmaceuticals LLC’s apremilast product during the term of the ’101, ’940, ’638, ’302, ’536, ’243, ’330 and ’541 Patents, unless authorized pursuant to a confidential settlement agreement. On December 30, 2020, based on a joint request by Amgen and Shilpa, the New Jersey District Court entered a consent judgment and injunction prohibiting the making, using, selling, offering to sell, or importing of Shilpa’s apremilast product during the term of the ’638, ’101 and ’854 Patents, unless authorized pursuant to a confidential settlement agreement. On January 26, 2021, based on a joint request by Amgen and Actavis, the New Jersey District Court entered a consent judgment and injunction prohibiting the making, using, selling, offering to sell, or importing of Actavis’ apremilast product during the term of the ’940, ’516, ’638, ’302, ’536, ’717, ’330, ’854 and ’541 Patents, unless authorized pursuant to a confidential settlement agreement.

Trial in the consolidated action against the remaining defendants is scheduled to commence on June 14, 2021.

Sensipar® (cinacalcet) ANDA Patent Litigation

Amgen Inc. v. Amneal Pharmaceuticals LLC, et al. (formerly, Amgen Inc. v. Aurobindo Pharma Ltd. et al.)

Beginning in September 2016, Amgen filed 14 separate lawsuits in the Delaware District Court for infringement of our U.S. Patent No. 9,375,405 (the ’405 Patent) against a number of manufacturers of purported generic versions of our Sensipar® product. In February 2017, the Delaware District Court consolidated these 14 lawsuits into a single case, Amgen Inc. v. Aurobindo Pharma Ltd. et al. In June 2017, Amgen filed an additional lawsuit in the Delaware District Court for infringement of the ’405 Patent which was consolidated into Amgen Inc. v. Aurobindo Pharma Ltd. et al. in August 2017. The ’405 Patent is entitled “Rapid Dissolution Formulation of a Calcium Receptor-Active Compound” and expires in 2026. All defendants responding to the complaint denied infringement and sought judgment that the ’405 Patent is invalid and/or not infringed.

Between September and November of 2017, Amgen filed, and the Delaware District Court signed, stipulated dismissals of the lawsuit against Micro Labs Ltd. and Micro Labs USA, Inc., and the lawsuit against Apotex, as well as consent judgments filed by Amgen and each of (1) Sun Pharma Global FZE, Sun Pharmaceutical Industries, Ltd. and Sun Pharmaceutical Industries, Inc. (collectively, Sun); (2) Ajanta Pharma Limited and Ajanta Pharma USA, Inc.; (3) Hetero USA Inc., Hetero Labs Ltd. and Hetero Labs Ltd. Unit V; and (4) Breckenridge. Each consent judgment stipulated to an entry of judgment of infringement and validity of the ’405 Patent and an injunction prohibiting the manufacture, use, sale, offer to sell, importation of or distribution into the United States of the respective defendant’s cinacalcet product during the term of the ’405 Patent, unless specifically authorized pursuant to the confidential settlement agreement.

In March 2018, the Delaware District Court commenced trial on the infringement claims and defenses in the Amgen Inc. v. Aurobindo Pharma Ltd. et al. consolidated lawsuit against the defendants that remained in the lawsuit, collectively consisting of (1) Watson Laboratories, Inc. and Actavis Pharma, Inc. (collectively, Watson); (2) Amneal Pharmaceuticals LLC and Amneal Pharmaceuticals of New York, LLC (collectively, Amneal); (3) Zydus Pharmaceuticals (USA) Inc. and Cadila Healthcare Ltd. (collectively, Zydus); and (4) Piramal Healthcare UK Limited (Piramal). Just prior to trial, the Delaware District Court signed consent judgments filed by Amgen and each of Cipla, and Strides Pharma Global Pte Limited and Strides Pharma, Inc. (collectively, Strides), and a consent judgment filed by Amgen and Aurobindo. In each consent judgment, the parties stipulated to an entry of judgment of infringement and validity of the ’405 Patent and an injunction prohibiting the manufacture, use, sale, offer to sell, importation of or distribution into the United States of the applicable defendant’s cinacalcet product during the term of the ’405 Patent, unless specifically authorized pursuant to the applicable confidential settlement agreement. Just prior to trial, the Delaware District Court also entered orders dismissing each of DRL and Mylan Pharmaceuticals Inc. and Mylan Inc. (collectively, Mylan), on stipulations between Amgen and such parties, respectively, subject to the terms of confidential settlement agreements.

In July 2018, the Delaware District Court issued a trial order finding on the infringement claims and defenses in the Amgen Inc. v. Aurobindo Pharma Ltd. et al. consolidated lawsuit that Zydus infringes the ’405 Patent and that Amneal, Piramal and Watson do not infringe the ’405 Patent. In August 2018, the Delaware District Court issued an order dismissing, without prejudice, the invalidity counterclaims of Amneal, Piramal and Watson and entered judgment of noninfringement of the ’405 Patent in favor of Amneal, Piramal and Watson. In September 2018, Amgen filed a notice of appeal to the Federal Circuit Court.

In October 2018, the Delaware District Court dismissed, without prejudice, the invalidity counterclaims of Zydus and entered judgment of infringement of the ’405 Patent by Zydus in favor of Amgen, including an order that the effective date of the FDA approval of Zydus’ generic version of Sensipar® shall be no earlier than the expiry date of our ’405 Patent. Also in October 2018, Zydus filed a notice of appeal to the Federal Circuit Court, and the Federal Circuit Court consolidated the appeals of Zydus and Amgen.

In December 2018, the FDA approved Watson’s generic version of Sensipar® and Watson’s parent company, Teva Pharmaceutical Industries Ltd. (Teva), began selling its product at-risk notwithstanding that the appeals were pending at the Federal Circuit Court. On January 2, 2019, Amgen, Watson and Teva entered into a settlement agreement in which Teva agreed to stop selling its generic product until the mid-year 2021 (or earlier under certain circumstances) and to pay Amgen an undisclosed amount. On January 9, 2019, Watson and Amgen filed a motion asking the Delaware District Court to vacate its final judgment of noninfringement as to Watson and to enter a proposed consent judgment of infringement and validity of the ’405 Patent and an injunction prohibiting the making, having made, using, selling, offering to sell, or distributing Watson’s cinacalcet product in the United States or importing Watson’s cinacalcet product into the United States, consistent with the confidential settlement agreement. On January 11, 2019, the Federal Circuit Court stayed the pending appeal by Amgen of the judgment of noninfringement as to Watson in order for the Delaware District Court to rule on the motion of Watson and Amgen. On March 26, 2019, the Delaware District Court denied the joint motion for indicative ruling of Watson and Amgen. On April 10, 2019, Amgen filed an appeal to the Federal Circuit Court and the Federal Circuit Court lifted the stay of Amgen’s appeal of the judgment of noninfringement as to Watson and consolidated it with Amgen’s appeal of the Delaware District Court’s denial of the joint motion for indicative ruling. On September 13, 2019, the Federal Circuit Court denied Amgen’s motion and lifted the stay of the briefing schedule which had been stayed pending disposition of Amgen’s motion to vacate. On July 9, 2020, the Federal Circuit Court granted a motion filed by Amgen and Watson to dismiss Amgen’s appeals of the Delaware District Court’s judgment of noninfringement as to Watson and denial of the joint motion for indicative ruling.

On March 19, 2019, Amgen filed an emergency motion for an injunction pending appeal, seeking an order from the Delaware District Court enjoining defendant Piramal from making, using, selling, offering for sale or importing its generic cinacalcet product. Amgen’s motion follows an announcement that Slate Run Pharmaceuticals LLC (Slate Run), in partnership with Piramal, had begun selling Piramal’s generic cinacalcet product at-risk notwithstanding the appeals pending at the Federal Circuit Court. On April 15, 2019, the Delaware District Court signed an order enjoining Piramal and Slate Run from selling their generic cinacalcet product until certain events occur related to a decision by the Federal Circuit Court on the parties’ appeal. The order has no effect on the product that Piramal and Slate Run had already sold to third parties.

On January 7, 2020, the Federal Circuit Court issued an opinion affirming the judgment of noninfringement with respect to Piramal, affirming the judgment of infringement with respect to Zydus and vacating and remanding to the Delaware District Court for further consideration the judgment of noninfringement with respect to Amneal. On April 22, 2020, the Federal Circuit Court issued a mandate returning the case to the Delaware District Court. On September 8, 2020, the Delaware District Court entered judgment of validity and infringement of the ’405 Patent in the lawsuit filed against Amneal and, except to the extent specifically authorized in a confidential settlement agreement, enjoined Amneal from infringing the ’405 Patent by making, using, selling, offering to sell or importing Amneal’s cinacalcet product during the term of the patent.

A hearing before the Delaware District Court on the request of Piramal to recover damages for being enjoined during the pendency of Amgen’s appeal has been rescheduled for March 24, 2021. On October 14, 2020, the Delaware District Court issued an order permitting Slate Run, Piramal’s business partner, to intervene in the pending action.

ENBREL Patent Litigation

Immunex Corporation, et al. v. Sandoz Inc., et al.

In February 2016, two affiliates of Amgen Inc., Immunex Corporation and Amgen Manufacturing, Limited (collectively, Amgen), along with Hoffmann-La Roche Inc. (Roche), filed a lawsuit in the New Jersey District Court against Sandoz Inc., Sandoz International GmbH and Sandoz GmbH (collectively, Sandoz). This lawsuit stems from Sandoz’s submission of an application for FDA licensure of an etanercept product as biosimilar to Amgen’s ENBREL. Amgen and Roche have asserted infringement of five patents: U.S. Patent Nos. 8,063,182 (the ’182 Patent), 8,163,522 (the ’522 Patent), 7,915,225 (the ’225 Patent), 8,119,605 (the ’605 Patent) and 8,722,631 (the ’631 Patent). By their complaint, Amgen and Roche seek an injunction to prohibit Sandoz from commercializing its biosimilar etanercept product in the United States prior to the expiry of such patents. All Sandoz defendants responded by denying infringement and/or asserting that the patents at issue are invalid. In August 2016, and subject to the terms of a confidential stipulation, the New Jersey District Court entered a preliminary injunction prohibiting Sandoz from making, using, importing, selling or offering for sale Sandoz’s etanercept product. Sandoz’s ErelziTM, a biosimilar to ENBREL, was approved by the FDA in August 2016.

In September 2018, the New Jersey District Court entered an order that the making, using, offering to sell or selling in the United States or the importation into the United States by Sandoz of Sandoz’s biosimilar etanercept product infringes the ’182 and ’522 Patents and held a bench trial, focusing on Sandoz’s challenges to the validity of these patents.

On August 9, 2019, the New Jersey District Court issued its decision upholding the validity of the ’182 and ’522 Patents. On October 8, 2019, by stipulation of Amgen and Sandoz, the New Jersey District Court entered final judgment and a permanent injunction prohibiting Sandoz from making, using, importing, selling or offering for sale Sandoz’s etanercept product, and, on the same day, Sandoz appealed the final judgment to the Federal Circuit Court. Following a motion by Sandoz, the Federal Circuit Court ordered an expedited briefing schedule for the appeal.

On March 4, 2020, the Federal Circuit Court heard oral argument on the appeal. On July 1, 2020, the Federal Circuit Court affirmed the judgment of the New Jersey District Court upholding the validity of the ’182 and ’522 Patents. On September 29, 2020, the Federal Circuit Court denied the petition for rehearing of Sandoz filed on July 31, 2020. On January 29, 2021, Sandoz filed a petition for certiorari with the U.S. Supreme Court seeking review of the Federal Circuit Court’s affirmance of the validity of the ’182 and ’522 Patents.

Immunex Corporation, et al. v. Samsung Bioepis Co., Ltd.

On April 30, 2019, two affiliates of Amgen Inc., Immunex Corporation and Amgen Manufacturing, Limited (collectively, Amgen), along with Roche, filed a lawsuit in the New Jersey District Court against Samsung Bioepis Co., Ltd. (Bioepis). This lawsuit stems from Bioepis’ submission of an application for FDA licensure of an etanercept product as biosimilar to Amgen’s ENBREL. Amgen and Roche have asserted infringement of five patents: the ’182, ’522, ’225, ’605 and ’631 Patents. By their complaint, Amgen and Roche seek an injunction to prohibit Bioepis from commercializing its biosimilar etanercept product in the United States prior to the expiry of such patents. On August 5, 2019, Bioepis responded to the complaint, denying infringement and seeking judgment that the patents-in-suit are invalid, unenforceable and/or not infringed. On January 9, 2020 and subject to the terms of a confidential stipulation and court order of January 6, 2020, the New Jersey District Court entered a consent injunction that prohibits Bioepis from making, using, offering to sell, selling or importing into the United States Bioepis’ etanercept product. Amgen and Bioepis entered into an agreement with respect to an injunction regarding etanercept as set out in the New Jersey District Court’s order of January 6, 2020. On January 15, 2020, the New Jersey District Court entered an order administratively staying the case pursuant to a joint request of Amgen and Bioepis.

Repatha® Patent Litigation

Amgen Inc., et al. v. Sanofi, et al.

In October 2014, Amgen initiated a series of lawsuits that were consolidated by the Delaware District Court in December 2014 into a single case against Sanofi, Sanofi-Aventis U.S. LLC and Aventisub LLC, formerly doing business as Aventis Pharmaceuticals Inc. (collectively, Sanofi) and Regeneron Pharmaceuticals, Inc. (Regeneron), addressing seven of our patents: U.S. Patent Nos. 8,563,698; 8,829,165 (the ’165 Patent); 8,859,741 (the ’741 Patent); 8,871,913; 8,871,914; 8,883,983; and 8,889,834. These patents describe and claim monoclonal antibodies to proprotein convertase subtilisin/kexin type 9 (PCSK9). By its complaints, Amgen seeks an injunction to prevent the infringing manufacture, use and sale of Sanofi and Regeneron’s alirocumab, a monoclonal antibody targeting PCSK9. In January 2016, the Delaware District Court granted Amgen’s motion to amend the complaint to add its affiliates, Amgen Manufacturing, Limited and Amgen USA Inc., as plaintiffs and to add the allegation that Sanofi and Regeneron’s infringement of Amgen’s patents is willful.

In February 2016, the Delaware District Court entered a stipulated order finding alirocumab and the drug product containing it, PRALUENT® infringe certain of Amgen’s patents, including claims 2, 7, 9, 15, 19 and 29 of the ’165 Patent and claim 7 of the ’741 Patent. In March 2016, the Delaware District Court entered judgment in favor of Amgen following a five-day jury trial and a unanimous jury verdict that these patent claims are all valid. In January 2017, the Delaware District Court denied Sanofi and Regeneron’s post-trial motions seeking a new trial and for judgment as a matter of law, and granted Amgen’s motion for a permanent injunction prohibiting the infringing manufacture, use, sale, offer for sale or import of alirocumab in the United States. Sanofi and Regeneron filed an appeal of the judgment and the permanent injunction to the Federal Circuit Court. In February 2017, following a motion by Sanofi and Regeneron, the Federal Circuit Court entered a stay of the permanent injunction during the pendency of the appeal. In October 2017, the Federal Circuit Court reversed in part the judgment of the Delaware District Court and remanded for a new trial two of the patent validity defenses (lack of written description and enablement of the claimed inventions), and affirmed the Delaware District Court’s judgment of infringement of claims 2, 7, 9, 15, 19 and 29 of the ’165 Patent and claim 7 of the ’741 Patent and the third patent validity defense (finding that the claimed inventions were not obvious to a person of ordinary skill in the field of the patents).

In March 2018, the Federal Circuit Court issued a mandate returning the case to the Delaware District Court for a new trial on two of Sanofi and Regeneron’s challenges to the validity of our patents (lack of written description and enablement of the claimed inventions) and for further consideration of a permanent injunction. In July 2018, Amgen filed a petition for certiorari with the U.S. Supreme Court seeking review of the Federal Circuit Court’s conclusion that the judgment affirming the validity of Amgen’s patents was based, in part, on an erroneous application of the law of written description. On January 7, 2019, the U.S. Supreme Court denied Amgen’s petition for certiorari. On remand, the Delaware District Court scheduled a new trial on Sanofi and Regeneron’s challenges to the validity of our patents based on lack of written description and enablement of the claimed inventions. The Delaware District Court also entered judgment on the pleadings for Sanofi and Regeneron on Amgen’s claim of willful infringement.

On February 25, 2019, a jury of the Delaware District Court unanimously upheld the validity of claims 19 and 29 of the ’165 Patent and claim 7 of the ’741 Patent. The jury also found that claims 7 and 15 of the ’165 Patent meet the enablement requirement, but are invalid for failure to meet the written description requirement. On March 18, 2019, Sanofi and Regeneron filed post-trial motions seeking to reverse judgment as a matter of law or for a new trial with respect to claims 19 and 29 of the ’165 Patent and claim 7 of the ’741 Patent, and Amgen filed a motion for a permanent injunction. On June 6, 13 and 21, 2019, the Delaware District Court held evidentiary hearings on Amgen’s motion for a permanent injunction against PRALUENT®. On August 28, 2019, the Delaware District Court ruled on the post-trial motions, denying Sanofi and Regeneron’s request for a new trial and their request to reverse the jury verdict that the ’165 Patent and the ’741 Patent provide written description support for the claimed inventions. The Delaware District Court also ruled as a matter of law that claims 19 and 29 of the ’165 Patent and claim 7 of the ’741 Patent are invalid for failing to meet the enablement requirement, overturning the jury verdict. On October 23, 2019, Amgen filed a notice of appeal to the Federal Circuit Court. On December 9, 2020, the Federal Circuit Court heard oral argument on the appeal.

Patent Disputes in the International Region

We are involved in and expect future involvement in additional disputes regarding our PCSK9 patents in other jurisdictions and regions. This includes matters filed against us and that we have filed in the United Kingdom, Germany, France, the Netherlands, Italy, Spain and Japan.

In February 2016, the European Patent Office (EPO) granted European Patent No. 2,215,124 (EP 2,215,124) to Amgen. This patent describes and claims monoclonal antibodies to PCSK9 and methods of treatment and Sanofi filed an opposition to the patent in the EPO seeking to invalidate it. In November 2016, Sanofi-Aventis Deutschland GmbH, Sanofi-Aventis Groupe S.A. and Sanofi Winthrop Industrie S.A. filed a joint opposition against Amgen’s patent, and each of Eli Lilly and Company, Regeneron and Strawman Ltd. also filed oppositions to Amgen’s patent. In November 2018, the EPO confirmed the validity of Amgen’s EP 2,215,124, which was appealed to the Technical Board of Appeal (TBA). On October 29, 2020, the TBA upheld the validity of certain claims, including claims that protect Repatha®, but ruled that broader claims encompassing PRALUENT® were invalid. As a result of the TBA’s decision, national litigations regarding PRALUENT® in Europe are in the process of being resolved.

On April 24, 2020, the Supreme Court of Japan declined to hear Sanofi K.K.’s appeals making final the Japanese High Court’s decisions that PRALUENT® infringes Amgen’s valid patent rights in Japan. On June 24, 2020, Amgen filed written answers to the invalidity trials initiated by Regeneron on February 12, 2020 before the Japan Patent Office seeking to invalidate Amgen’s Japanese patents that were previously held infringed by PRALUENT® and valid over challenges filed by Sanofi K.K. Damages proceedings against Sanofi K.K. are ongoing before the Tokyo District Court, where Sanofi K.K. has initiated new validity challenges to Amgen patents in Japan.

NEUPOGEN® (filgrastim)/Neulasta® Patent Litigation

Amgen Inc., et al. v. Pfizer Inc. et al.

In July 2018, Amgen Inc. and its wholly owned subsidiary, Amgen Manufacturing, Limited (collectively, Amgen), filed a lawsuit in the Delaware District Court against Pfizer Inc. and Hospira Inc. (collectively, Pfizer). This lawsuit stems from Pfizer’s submission of an application for FDA licensure of a filgrastim product as biosimilar to Amgen’s NEUPOGEN®. Amgen has asserted infringement of U.S. Patent No. 9,643,997 (the ’997 Patent) and seeks, among other remedies, injunctive relief to prohibit Pfizer from infringing the ’997 Patent. In July 2018, the FDA approved Pfizer’s NIVESTYMTM, a biosimilar to NEUPOGEN®, which was subsequently launched in October 2018. In August 2018, Pfizer answered the complaint and counterclaimed seeking a declaration that Pfizer does not infringe Amgen’s ’997 Patent and that the patent is invalid.

On March 22, 2019, Amgen filed an amended complaint against Pfizer in the Delaware District Court narrowing the patent claims at issue in the infringement dispute and adding a request for damages. On April 11, 2019, Pfizer answered Amgen’s amended complaint including counterclaims seeking declaratory judgments of noninfringement and invalidity. On February 18, 2020, the Delaware District Court entered an amended scheduling order moving the trial on the infringement of our ’997 Patent to May 17, 2021, to enable Amgen to seek additional discovery into Pfizer’s invalidity defenses.

On April 24, 2020, Amgen filed a separate lawsuit in the Delaware District Court against Pfizer for infringement of U.S. Patent No. 10,577,392 (the ’392 Patent) and seeks, among other remedies, damages and injunctive relief to prohibit Pfizer from infringing the ’392 Patent by the manufacture, import and sale of Pfizer’s NIVESTYMTM. On January 7, 2021, the Delaware District Court granted Pfizer’s request to stay the patent infringement lawsuit on the ’392 Patent until the co-pending patent infringement lawsuit on the ’997 Patent is resolved.

Amgen Inc., et al. v. Hospira Inc. et al.

On February 11, 2020, Amgen Inc. and its wholly owned subsidiary, Amgen Manufacturing, Limited (collectively, Amgen), filed a lawsuit in the Delaware District Court against Pfizer. This lawsuit stems from Pfizer’s submission of an application for FDA licensure of a pegfilgrastim product as biosimilar to Amgen’s Neulasta®. Amgen has asserted infringement of U.S. Patent No. 8,273,707 (the ’707 Patent) and seeks, among other remedies, injunctive relief to prohibit Pfizer from infringing the ’707 Patent. On March 4, 2020, Pfizer filed a motion requesting the Delaware District Court to dismiss the complaint by Amgen alleging noninfringement of the ’707 Patent. In June 2020, the FDA approved Pfizer’s NYVEPRIA™, a biosimilar to Amgen’s Neulasta®.

Patent Trial and Appeal Board (PTAB) Challenge

Lupin PTAB Challenge

On December 15, 2020, Lupin Limited (Lupin) filed a petition to institute inter parties review (IPR) proceeding at the U.S. Patent and Trademark Office (USPTO) of U.S. Patent No. 9,856,287 (the ’287 Patent) challenging claims of the ’287 Patent as unpatentable. Amgen’ s preliminary response is due on April 14, 2021 and the PTAB will then have no more than three months to decide whether to institute a proceeding.

Apotex PTAB Challenge

In February 2017, the PTAB of the USPTO granted Apotex’s petition to institute IPR proceeding of U.S. Patent No. 8,952,138 (the ’138 Patent), challenging claims of the ’138 Patent as unpatentable. In May 2017, Amgen filed its response. In February 2018, the PTAB issued a final decision holding all but one claim of the ’138 Patent as unpatentable and Apotex filed a request for rehearing in March 2018.

On May 20, 2019, the PTAB issued a decision denying Apotex’s request for rehearing on the PTAB’s finding and sua sponte amending the final decision with a finding that the one remaining claim in Amgen’s ’138 Patent is unpatentable. On July 22, 2019, Amgen filed a notice of appeal to the Federal Circuit Court with respect to all claims held to be unpatentable. On August 5, 2019, Apotex provided notice that it would not participate in the appeal. On September 16, 2019, the USPTO filed a notice of intervention on the appeal. On March 24, 2020, the Federal Circuit Court vacated the decision by the PTAB and remanded the case to the PTAB for proceeding consistent with the Federal Circuit Court’s decision in Arthrex Inc. v. Smith & Nephew, Inc., 941 F.3d 1320 (Fed. Cir. 2019).

On July 14, 2020, Amgen and Apotex filed a joint motion to terminate the IPR proceedings stating that there is no current dispute between the parties with respect to the ’138 Patent. On July 29, 2020, the U.S. government filed a petition for writ of certiorari with respect to the cases that the Federal Circuit Court remanded to the PTAB, including the case regarding the ’138 Patent, for proceedings consistent with its decision in Arthrex Inc. v. Smith & Nephew, Inc., 941 F.3d 1320 (Fed. Cir. 2019), requesting that such remanded cases be held pending the U.S. Supreme Court’s disposition of the petition for writ of certiorari in United States v. Arthrex, Inc., No. 19-1434. On August 25, 2020, Amgen filed its response to the U.S. government’s petition for writ of certiorari indicating that Amgen did not intend to respond unless requested by the U.S. Supreme Court.

Breach of Contract Action

Novartis Pharma AG v. Amgen Inc.

On April 4, 2019, Amgen filed a lawsuit in the U.S. District Court for the Southern District of New York (the New York Southern District Court) against Novartis Pharma AG (Novartis) seeking a declaratory judgment that Novartis materially breached two collaboration agreements Amgen and Novartis entered into in 2015 and 2017 (the 2015 Agreement and the 2017 Agreement, respectively) related to the development and commercialization of Aimovig® due to Novartis’ affiliate Sandoz GmbH entering into a contract manufacturing agreement with Alder BioPharmaceuticals, Inc. (Alder) related to eptinezumab, an expected direct competitor to Aimovig® and entrant in the calcitonin gene-related peptide (CGRP)-related migraine therapy market. Amgen seeks to terminate its collaboration agreements with Novartis and also seeks damages from Novartis for breach of contract and negligent misrepresentation. Also on April 4, 2019, Novartis initiated a separate lawsuit against Amgen in the same court seeking declaratory judgment that Novartis, alternatively, did not materially breach the collaboration agreements or, even if it did breach the collaboration agreements, such breach was not material and has been cured, and that Amgen may not terminate the collaboration agreements. On April 8, 2019, Amgen answered Novartis’ complaint and filed counterclaims seeking a declaratory judgment that Novartis materially breached the collaboration agreements due to its affiliate Sandoz GmbH entering into the contract manufacturing agreement with Alder. In its counterclaim, Amgen seeks to terminate its collaboration agreements with Novartis and also seeks damages from Novartis for breach of contract and negligent misrepresentation. On July 16, 2019, Novartis filed an amended complaint adding a claim for breach of contract alleging Novartis is owed amounts associated with 2018 budget overruns and Amgen responded with a counterclaim alleging additional breaches by Novartis of the collaboration agreements. On September 17, 2019 and October 8, 2019, Novartis and Amgen, respectively, each filed its motion for judgment on the pleadings. On February 3, 2020, Amgen was granted leave to file its amended counterclaims. On February 4, 2020, Amgen filed its amended answer to Novartis’ first amended complaint and second amended counterclaims for affirmative relief to add a fraudulent inducement claim. On February 18, 2020, Novartis filed its answer and affirmative defenses to Amgen’s second amended counterclaims.

On June 9, 2020, the New York Southern District Court entered an order granting Novartis’ motion for judgment on the pleadings that Novartis did not breach the 2017 Agreement, and denying Amgen’s motions for judgment on the pleadings seeking dismissal of Novartis’ amended complaint that Novartis did not breach the 2015 Agreement or the 2017 Agreement, and Novartis timely cured any breach. On June 23, 2020, Amgen filed a motion for clarification and/or reconsideration of the June 9, 2020 order, which was denied on September 14, 2020.

Antitrust Class Action

Sensipar® Antitrust Class Actions

From February to April 2019, four plaintiffs filed putative class action lawsuits against Amgen and various entities affiliated with Teva alleging anticompetitive conduct in connection with settlements between Amgen and manufacturers of generic cinacalcet product. Two of those actions were brought in the Delaware District Court, captioned UFCW Local 1500 Welfare Fund v. Amgen Inc., et al. (February 21, 2019) (Local 1500) and Cesar Castillo, Inc. v. Amgen Inc., et al. (February 26, 2019) (Castillo). The third action was brought in the New Jersey District Court, captioned Teamsters Local 237 Welfare Fund, et al. v. Amgen Inc., et al. (March 14, 2019) (Local 237) and the fourth action was brought in the U.S. District Court for the Eastern District of Pennsylvania (the Eastern Pennsylvania District Court), captioned KPH Healthcare Services, Inc. a/k/a Kinney Drugs, Inc. v. Amgen Inc., et al (April 10, 2019) (KPH). Each of the lawsuits is brought on behalf of a putative class of direct or indirect purchasers of Sensipar® and alleges that the plaintiffs have overpaid for Sensipar® as a result of Amgen’s conduct that allegedly improperly delayed market entry by manufacturers of generic cinacalcet products. The lawsuits focus predominantly on the settlement among Amgen, Watson and Teva of the parties’ patent infringement litigation. Each of the lawsuits seeks, among other things, treble damages, equitable relief and attorneys’ fees and costs. On April 10, 2019, the plaintiff in the KPH lawsuit filed a motion seeking to have the four lawsuits consolidated and designated as a multidistrict litigation (MDL) in the Eastern Pennsylvania District Court, and the plaintiff in the Local 1500 lawsuit filed a motion seeking to have the four lawsuits, along with Cipla Ltd. v. Amgen Inc., consolidated and designated as a MDL in the Delaware District Court.

On July 31, 2019, the MDL panel entered an order consolidating in the Delaware District Court the four class action lawsuits. On September 13, 2019, the plaintiffs filed amended complaints, and on October 15, 2019, Amgen filed its motion to dismiss both the direct purchaser plaintiffs’ consolidated class action complaint and the indirect purchaser end payor plaintiffs’ complaint. On December 6, 2019, the plaintiffs responded to Amgen’s motion to dismiss and, on January 10, 2020, Amgen filed its response. On February 6, 2020, the motions in the class action lawsuits were transferred to the U.S. Magistrate Judge for the District of Delaware (Magistrate Judge) for a recommendation. The MDL panel certified its conditional transfer order on February 6, 2020 transferring the additional class action lawsuit brought in the U.S. District Court for the Southern District of Florida, captioned MSP Recovery Claims v. Amgen Inc., et al., to the Delaware District Court.

On July 22, 2020, the Magistrate Judge issued a recommendation to the Delaware District Court that the claims against Amgen be dismissed but leave be given to plaintiffs to amend their complaints. On August 5, 2020, the plaintiffs filed objections to the Magistrate Judge’s report and recommendation. On August 19, 2020, Amgen filed a response to the plaintiffs’ objections. On November 30, 2020, the District Court adopted the Magistrate Judge’s recommendation in part and denied it in part, denying Amgen’s motion to dismiss on the grounds that plaintiffs adequately alleged reverse payment claims but granted Amgen’s motion to dismiss with respect to the other Federal antitrust claims. On December 23, 2020, Teva, Watson and Actavis filed a motion for interlocutory appeal and for a stay pending appeal and Amgen filed its joinder (the 1292 Motion). On January 5, 2021, a joint status report was filed advising the Delaware District Court that the defendants are still considering whether to withdraw the 1292 Motion and plaintiffs’ offer to stay discovery, pending further rulings on motions to dismiss the amended complaints. On January 19, 2021, a joint status report was filed pursuant to the Delaware District Court’s January 6, 2021 order along with a stipulation to defer the 1292 Motion until after rulings on the amended complaints.

Humira® Biosimilar Antitrust Class Actions

From March to May 2019, twelve purported class actions against Amgen, along with AbbVie Inc. and AbbVie Biotechnology Ltd. (collectively, AbbVie), were filed in the U.S. District Court for the Northern District of Illinois (the Illinois Northern District Court). The cases are captioned: UFCW Local 1500 Welfare Fund v. AbbVie Inc., et al. (March 18, 2019) (Local 1500); Fraternal Order of Police, Miami Lodge 20, Insurance Trust Fund v. AbbVie Inc., et al. (March 20, 2019); Mayor and City Council of Baltimore v. AbbVie Inc., et al. (March 22, 2019); Pipe Trades Services MN Welfare Fund v. AbbVie Inc., et al. (March 29, 2019); St. Paul Electrical Workers’ Health Plan v. AbbVie Inc., et al. (March 29, 2019); Welfare Plan of the International Union of Operating Engineers Locals 137, 137A, 137B, 137C and 137R v. AbbVie Inc., et al. (April 1, 2019); Law Enforcement Health Benefits, Inc. v. AbbVie, Inc., et al. (April 9, 2019) (Law Enforcement); Kentucky Laborers District Council Health and Welfare Fund v. AbbVie, Inc., et al. (April 16, 2019); Sheet Metal Workers’ Local Union No. 28 Welfare Fund v. AbbVie, Inc., et al. (April 19, 2019) (Sheet Metal Workers’); Locals 302 & 612 of The International Union of Operating Engineers-Employers Construction Industry Health And Security Trust Fund v. AbbVie Inc., et al. (April 25, 2019) (Construction Industry); Louisiana Health Service & Indemnity Co., d/b/a Blue Cross and Blue Shield of Louisiana and HMO Louisiana, Inc. v. AbbVie Inc., et al. (April 30, 2019) (Louisiana Health); and Cleveland Bakers and Teamsters Health and Welfare Fund v. AbbVie Inc., et al. (May 10, 2019) (Cleveland Bakers) (collectively, Humira® Antitrust Class Actions).

In each of the Humira® Antitrust Class Actions, the plaintiffs bring federal antitrust claims along with various state law claims under common law and antitrust, consumer protection and unfair competition statutes. In each case, the plaintiffs specifically allege that AbbVie has unlawfully monopolized the alleged market for Humira® and biosimilars of Humira®, including by creating an allegedly unlawful so-called patent thicket around Humira®. In the Local 1500, Sheet Metal Workers’ and Construction Industry cases, the plaintiffs further allege that AbbVie entered into allegedly unlawful market division agreements with Amgen and other companies that had developed Humira® biosimilars, including Bioepis, Mylan, Sandoz, Inc., Fresenius Kabi USA, LLC, Pfizer Inc. and Momenta Pharmaceuticals, Inc., in connection with the settlement of patent litigation relating to Humira®, whereby Amgen and the other defendants that have developed Humira® biosimilars were permitted to market those products in Europe as early as October 2018, while remaining off the market in the United States until 2023. In each of the Humira® Antitrust Class Actions other than the Local 1500 and Construction Industry cases, the plaintiffs allege that AbbVie and Amgen entered into an allegedly unlawful settlement agreement under which Amgen allegedly agreed to delay its entry into the U.S. market with AMGEVITATM (adalimumab), its Humira® biosimilar, in exchange for an alleged promise of exclusivity as the sole Humira® biosimilar in that market for five months, beginning in January 2023. In each of the Humira® Antitrust Class Actions, plaintiffs seek injunctive relief, treble damages and attorney’s fees on behalf of a putative class of third-party payers and/or consumers that have indirectly purchased, paid for or provided reimbursement for Humira® in the United States. Defendants’ responses to the first six complaints were stayed by the court. On June 4, 2019, the Illinois Northern District Court entered an order consolidating the twelve purported class action cases for pre-trial purposes.

On August 9, 2019, the plaintiffs filed their consolidated complaint, naming as defendants Amgen, along with AbbVie, Bioepis, Sandoz, Inc. and Fresenius Kabi USA LLC. On October 11, 2019, the defendants filed a joint motion to dismiss the consolidated complaint (as well as brief individual motions), challenging the legal sufficiency of the plaintiffs’ allegations to state any claim for relief under the law. On November 19, 2019, plaintiffs filed their opposition to the motion to dismiss. On December 20, 2019, defendants filed their reply in support of the motion to dismiss. On June 8, 2020, the Illinois Northern District Court issued an order granting the motion by the defendants to dismiss the consolidated class action complaint. On June 29, 2020, the plaintiffs filed a status report asking the Illinois Northern District Court to convert the dismissal to one with prejudice. On June 30, 2020, the Illinois Northern District Court granted the motion. On July 28, 2020, the plaintiffs filed a notice of appeal. On October 5, 2020, the plaintiffs-appellants filed their opening brief to the U.S. Court of Appeals for the Seventh Circuit. Plaintiffs-appellants amicus briefs were filed in October 2020, including one by the Federal Trade Commission and one on behalf of 20 states, each filed on October 13, 2020. On December 21, 2020, the defendants-appellees filed their opposition brief. Defendants-appellees amicus briefs, including one by the Department of Justice, were filed on December 28, 2020. The plaintiffs-appellants’ reply brief was filed on February 1, 2021, and oral argument has been scheduled for February 25, 2021.

Commitments – U.S. repatriation tax

Under the 2017 Tax Act, we elected to pay in eight annual installments the repatriation tax related primarily to prior indefinitely invested earnings of our foreign operations. The following table summarizes the remaining scheduled repatriation tax payments as of December 31, 2020 (in millions):


	Amounts
2021	$	587
2022	587
2023	1,100
2024	1,467
2025	1,834
Total remaining U.S. repatriation tax commitments	$	5,575

Quarterly financial data (unaudited)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Quarterly financial data (unaudited)

The following tables summarize the Company’s unaudited financial data on a quarterly basis. The sum of the quarterly earnings per-share amounts may not equal the amount reported for the full year because per-share amounts are computed independently for each quarter and for the full year based on respective weighted-average shares outstanding and dilutive securities.

Quarterly financial data is summarized as follows (in millions, except per-share data):


	2020 Quarters ended
	December 31		September 30		June 30		March 31
Product sales	$	6,334	$	6,104	$	5,908	$	5,894
Gross profit from product sales	$	4,737	$	4,543	$	4,420	$	4,381
Net income	$	1,615	$	2,021	$	1,803	$	1,825
Earnings per share:
Basic	$	2.78	$	3.45	$	3.07	$	3.09
Diluted	$	2.76	$	3.43	$	3.05	$	3.07

	2019 Quarters ended
	December 31		September 30		June 30		March 31
Product sales	$	5,881	$	5,463	$	5,574	$	5,286
Gross profit from product sales	$	4,628	$	4,427	$	4,562	$	4,231
Net income	$	1,703	$	1,968	$	2,179	$	1,992
Earnings per share:
Basic	$	2.87	$	3.29	$	3.59	$	3.20
Diluted	$	2.85	$	3.27	$	3.57	$	3.18

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2019

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

SCHEDULE II

AMGEN INC.

VALUATION AND QUALIFYING ACCOUNTS

Years ended December 31, 2020, 2019 and 2018

(In millions)


Allowance for doubtful accounts	Balance at beginning of period		Additions charged to costs and expenses		Other additions		Deductions		Balance at end of period
Year ended December 31, 2020	$	26	$	8	$	—	$	2	$	32
Year ended December 31, 2019	$	48	$	—	$	—	$	22	$	26
Year ended December 31, 2018	$	51	$	1	$	—	$	4	$	48

Summary of significant accounting policies - (Policies)	12 Months Ended
Summary of significant accounting policies - (Policies)	Dec. 31, 2020
Accounting Policies [Abstract]
Business	Business Amgen Inc. (including its subsidiaries, referred to as “Amgen,” “the Company,” “we,” “our” or “us”) is a global biotechnology pioneer that discovers, develops, manufactures and delivers innovative human therapeutics. We operate in one business segment: human therapeutics.
Principles of consolidation	Principles of consolidation The consolidated financial statements include the accounts of Amgen as well as its majority-owned subsidiaries. We do not have any significant interests in any variable interest entities. All material intercompany transactions and balances have been eliminated in consolidation.
Use of estimates	Use of estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates.
Revenues and Arrangements with multiple performance obligations	Revenues Product sales and sales deductions Revenue from product sales is recognized upon transfer of control of a product to a customer, generally upon delivery, based on an amount that reflects the consideration to which we expect to be entitled, net of accruals for estimated rebates, wholesaler chargebacks, discounts and other deductions (collectively, sales deductions) and returns established at the time of sale. We analyze the adequacy of our accruals for sales deductions quarterly. Amounts accrued for sales deductions are adjusted when trends or significant events indicate that an adjustment is appropriate. Accruals are also adjusted to reflect actual results. Accruals for sales deductions are based primarily on estimates of the amounts earned or to be claimed on the related sales. These estimates take into consideration current contractual and statutory requirements, specific known market events and trends, internal and external historical data and forecasted customer buying patterns. Sales deductions are substantially product specific and therefore, for any given period, can be affected by the mix of products sold. Included in sales deductions are immaterial net adjustments related to prior-period sales due to changes in estimates. Historically, such amounts have represented less than 1% of the aggregate sales deductions charged against product sales. Returns are estimated through comparison of historical return data to their related sales on a production lot basis. Historical rates of return are determined for each product and are adjusted for known or expected changes in the marketplace specific to each product, when appropriate. Historically, sales return provisions have amounted to less than 1% of gross product sales. Changes in estimates for prior-period sales return provisions have historically been immaterial. Our payment terms vary by types and locations of customers and the products or services offered. Payment terms differ by jurisdiction and customer, but payment is generally required in a term ranging from 30 to 120 days from date of shipment or satisfaction of the performance obligation. For certain products or services and certain customer types, we may require payment before products are delivered or services are rendered to customers. Indirect taxes collected from customers and remitted to government authorities and that are related to sales of the Company’s products, primarily in Europe, are excluded from revenues. As a practical expedient, sales commissions are expensed when incurred because the amortization period would have been one year or less. These costs are recorded in Selling, general and administrative (SG&A) expense in the Consolidated Statements of Income. Other revenues Other revenues consist primarily of royalty income and corporate partner revenues. Royalties from licensees are based on third-party sales of licensed products and are recorded when the related third-party product sale occurs. Royalty income is estimated based on historical and forecasted sales trends. Corporate partner revenues are composed mainly of license fees and milestones earned and our share of commercial profits generated from collaborations. See Arrangements with multiple-performance obligations, discussed below. Arrangements with multiple-performance obligations From time to time, we enter into arrangements for the research and development (R&D), manufacture and/or commercialization of products and product candidates. Such arrangements may require us to deliver various rights, services and/or goods, including intellectual property rights/licenses, R&D services, manufacturing services and/or commercialization services. The underlying terms of these arrangements generally provide for consideration to Amgen in the form of nonrefundable, upfront license fees; development and commercial performance milestone payments; royalty payments; and/or profit sharing. In arrangements involving more than one performance obligation, each required performance obligation is evaluated to determine whether it qualifies as a distinct performance obligation based on whether (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available and (ii) the good or service is separately identifiable from other promises in the contract. The consideration under the arrangement is then allocated to each separate distinct performance obligation based on its respective relative stand-alone selling price. The estimated selling price of each deliverable reflects our best estimate of what the selling price would be if the deliverable was regularly sold by us on a stand-alone basis or by using an adjusted market assessment approach if selling price on a stand-alone basis is not available. The consideration allocated to each distinct performance obligation is recognized as revenue when control of the related goods or services is transferred. Consideration associated with at-risk substantive performance milestones is recognized as revenue when it is probable that a significant reversal of the cumulative revenue recognized will not occur. We utilize the sales- and usage-based royalty exception in arrangements that resulted from the license of intellectual property, recognizing revenues generated from royalties or profit sharing as the underlying sales occur.
Research and development costs	Research and development costs R&D costs are expensed as incurred and primarily include salaries, benefits and other staff-related costs; facilities and overhead costs; clinical trial and related clinical manufacturing costs; contract services and other outside costs; information systems’ costs; and amortization of acquired technology used in R&D with alternative future uses. R&D expenses also include costs and cost recoveries associated with third-party R&D arrangements, including upfront fees and milestones paid to third parties in connection with technologies that had not reached technological feasibility and did not have an alternative future use. Net payment or reimbursement of R&D costs is recognized when the obligations are incurred or as we become entitled to the cost recovery. See Note 8, Collaborations.
Selling, general and administrative costs	Selling, general and administrative costs SG&A costs are primarily composed of salaries, benefits and other staff-related costs associated with sales and marketing, finance, legal and other administrative personnel; facilities and overhead costs; outside marketing, advertising and legal expenses; the U.S. healthcare reform federal excise fee on Branded Prescription Pharmaceutical Manufacturers and Importers; and other general and administrative costs. Advertising costs are expensed as incurred and were $962 million, $789 million and $674 million during the years ended December 31, 2020, 2019 and 2018, respectively. SG&A expenses also include costs and cost recoveries associated with marketing and promotion efforts under certain collaborative arrangements. Net payment or reimbursement of SG&A costs is recognized when the obligations are incurred or we become entitled to the cost recovery. See Note 8, Collaborations.
Leases	Leases Adoption of new lease standard In February 2016, the Financial Accounting Standards Board (FASB) issued a new accounting standard that amends the guidance for the accounting and disclosure of leases. This new standard requires that lessees recognize the assets and liabilities that arise from leases on the balance sheet, including leases classified as operating leases, and that they disclose qualitative and quantitative information about leasing arrangements. The FASB subsequently issued additional amendments to address issues arising from the implementation of the new lease standard. We adopted this standard as of January 1, 2019, using the modified-retrospective method, which provides a method for recording existing leases at adoption. We used the adoption date as our date of initial application, and thus, comparative-period financial information is not presented for periods prior to the adoption date. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed us to carry forward the historical lease classification. Adoption of the new standard resulted in total lease liabilities of $510 million and right-of-use (ROU) assets of $439 million as of January 1, 2019. The difference between the initial lease liabilities and the ROU assets is primarily related to previously existing lease liabilities. The standard did not materially impact our Consolidated Statements of Income and had no impact on our Consolidated Statements of Cash Flows. Our accounting policies under the new standard are described below. See Note 13, Leases. Lease recognition At inception of a contract, we determine whether an arrangement is or contains a lease. For all leases, we determine the classification as either operating or financing. Operating leases are included in Other assets, Accrued liabilities and Other noncurrent liabilities in our Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments under the lease. Lease recognition occurs at the commencement date, and lease liability amounts are based on the present value of lease payments made during the lease term. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Because most of our leases do not provide information to determine an implicit interest rate, we use our incremental borrowing rate in determining the present value of lease payments. ROU assets also include any lease payments made prior to the commencement date less lease incentives received. Operating lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with both lease and nonlease components, which are generally accounted for together as a single lease component. In addition, for certain vehicle and equipment leases, we apply a portfolio approach to determine the lease term and discount rate.
Stock-based compensation	Stock-based compensation We have stock-based compensation plans under which various types of equity-based awards are granted, including restricted stock units (RSUs), performance units and stock options. The fair values of RSUs and stock option awards, which are subject only to service conditions with graded vesting, are recognized as compensation expense, generally on a straight-line basis over the service period, net of estimated forfeitures. The fair values of performance unit awards are recognized as compensation expense, generally on a straight-line basis from the grant date to the end of the performance period. See Note 4, Stock-based compensation.
Income taxes	Income taxes We provide for income taxes based on pretax income and applicable tax rates in the various jurisdictions in which we operate. Significant judgment is required in determining our provision for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws. Deferred income taxes are recorded for the expected tax consequences of temporary differences between the bases of assets and liabilities, as well as for loss and tax credit carryforwards for financial reporting purposes and amounts recognized for income tax purposes. We record a valuation allowance to reduce our deferred tax assets to the amount of future tax benefit that is more likely than not to be realized. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by tax authorities based on the technical merits of the position. The tax benefit recognized in the consolidated financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized. The amount of unrecognized tax benefits (UTBs) is adjusted as appropriate for changes in facts and circumstances, such as significant amendments to existing tax law, new regulations or interpretations by tax authorities, new information obtained during a tax examination or resolution of an examination. We recognize both accrued interest and penalties, where appropriate, related to UTBs in income tax expense. See Note 6, Income taxes.
Acquisitions	Acquisitions We first determine whether a set of assets acquired constitute a business and should be accounted for as a business combination. If the assets acquired are not a business, we account for the transaction as an asset acquisition. Business combinations are accounted for by using the acquisition method of accounting. Under the acquisition method, assets acquired, including in-process research and development (IPR&D) projects, and liabilities assumed are recorded at their respective fair values as of the acquisition date in our consolidated financial statements. The excess of the fair value of consideration transferred over the fair value of the net assets acquired is recorded as goodwill. Contingent consideration obligations incurred in connection with a business combination (including the assumption of an acquiree’s liability arising from an acquisition it consummated prior to our acquisition) are recorded at their fair values on the acquisition date and remeasured at their fair values each subsequent reporting period until the related contingencies are resolved. The resulting changes in fair values are recorded in earnings. In contrast, asset acquisitions are accounted for using a cost accumulation and allocation model. Under this model, the cost of the acquisition is allocated to the assets acquired and liabilities assumed. Contingent consideration obligations incurred in connection with an asset acquisition are recorded when it is probable that they will occur and they can be reasonably estimated. See Note 2, Acquisitions, and Note 17, Fair value measurement.
Cash equivalents	Cash equivalents We consider cash equivalents to be only those investments that are highly liquid, readily convertible to cash and which mature within three months from the date of purchase.
Interest-bearing securities	Interest-bearing securities We consider our interest-bearing securities investment portfolio available-for-sale, and accordingly, these investments are recorded at fair value, with unrealized gains and losses recorded in Accumulated other comprehensive income (loss) (AOCI). Investments with maturities beyond one year may be classified as short-term marketable securities in the Consolidated Balance Sheets due to their highly liquid nature and because they represent the Company’s investments that are available for current operations. See Note 9, Investments, and Note 17, Fair value measurement.
Inventories	Inventories Inventories are stated at the lower of cost or net realizable value. Cost, which includes amounts related to materials, labor and overhead, is determined in a manner that approximates the first-in, first-out method. Net realizable value is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. See Note 10, Inventories.
Derivatives	Derivatives We recognize all of our derivative instruments as either assets or liabilities at fair value in the Consolidated Balance Sheets. The accounting for changes in the fair value of a derivative instrument depends on whether the derivative has been formally designated and qualifies as part of a hedging relationship under the applicable accounting standards and, further, on the type of hedging relationship. For derivatives formally designated as hedges, we assess both at inception and quarterly thereafter whether the hedging derivatives are highly effective in offsetting changes in either the fair value or cash flows of the hedged item. Our derivatives that are not designated and do not qualify as hedges are adjusted to fair value through current earnings. See Note 17, Fair value measurement, and Note 18, Derivative instruments.
Property, plant and equipment, net	Property, plant and equipment, net Property, plant and equipment is recorded at historical cost, net of accumulated depreciation, amortization and, if applicable, impairment charges. We review our property, plant and equipment assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Depreciation is provided over the assets’ useful lives on a straight-line basis. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or lease terms. See Note 11, Property, plant and equipment.
Goodwill and other intangible assets	Goodwill and other intangible assets Finite-lived intangible assets are recorded at cost, net of accumulated amortization, and, if applicable, impairment charges. Amortization of finite-lived intangible assets is provided over their estimated useful lives on a straight-line basis or based on the pattern in which economic benefits are consumed, if reliably determinable. We review our finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. See Note 12, Goodwill and other intangible assets. The fair values of IPR&D projects acquired in a business combination that are not complete are capitalized and accounted for as indefinite-lived intangible assets until completion or abandonment of the related R&D efforts. Upon successful completion of the project, the capitalized amount is amortized over its estimated useful life. If a project is abandoned, all remaining capitalized amounts are written off immediately. There are often major risks and uncertainties associated with IPR&D projects as we are required to obtain regulatory approvals in order to be able to market the resulting products. Such approvals require completing clinical trials that demonstrate a product candidate is safe and effective. Consequently, the eventual realized value of the acquired IPR&D project may vary from its fair value at the date of acquisition, and IPR&D impairment charges may occur in future periods. Capitalized IPR&D projects are tested for impairment annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. We consider various factors for potential impairment, including the current legal and regulatory environment and the competitive landscape. Adverse clinical trial results, significant delays in obtaining marketing approval, the inability to bring a product to market and the introduction or advancement of competitors’ products could result in partial or full impairment of the related intangible assets. We perform an impairment test of goodwill annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. To date, an impairment of goodwill has not been recorded. See Note 12, Goodwill and other intangible assets.
Contingencies	Contingencies In the ordinary course of business, we are involved in various legal proceedings, government investigations and other matters that are complex in nature and have outcomes that are difficult to predict. Certain of these proceedings are discussed in Note 19, Contingencies and commitments. We record accruals for loss contingencies to the extent that we conclude that it is probable that a liability has been incurred and the amount of the related loss can be reasonably estimated. We evaluate, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase or decrease in the amount of the liability that has been accrued previously.
Foreign currency translation	Foreign currency translation The net assets of international subsidiaries whose local currencies have been determined to be the functional currencies are translated into U.S. dollars using current exchange rates. The U.S. dollar effects that arise from translating net assets of these subsidiaries at changing rates are recognized in AOCI. The subsidiaries’ earnings are translated into U.S. dollars using average exchange rates.
Equity method investments	Equity method investments The equity method of accounting is used for equity investments that give us the ability to exert significant influence, but not control, over an investee based on such factors as our ownership percentage, voting and other shareholder rights, board of director representation and the existence of other collaborative or business relationships. The equity method of accounting requires us to allocate the difference between the fair value of securities acquired and our proportionate share of the carrying value of the underlying assets (the basis difference) to various items and amortize such differences over their useful lives. Our share of the investees’ earnings or losses and amortization of basis differences, if any, are recorded one quarter in arrears in Interest and other income, net, in the Consolidated Statements of Income. We record impairment losses on our equity method investments if we deem the impairment to be other-than-temporary. We deem an impairment to be other-than-temporary based on various factors, including but not limited to, the length of time the fair value is below the carrying value, volatility of the security price and our intent and ability to retain the investment to allow for a recovery in fair value.
Other recently adopted pronouncement and Other recent accounting pronouncements	Recent accounting pronouncements In June 2016, the FASB issued a new accounting standard that amends the guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the incurred-loss model with an expected-loss model. Accordingly, these financial assets are now presented at the net amount expected to be collected. This new standard also requires that credit losses related to available-for-sale debt securities be recorded as an allowance through net income rather than reducing the carrying amount under the former other-than-temporary-impairment model. We adopted this standard as of January 1, 2020, using a modified-retrospective approach. Adoption of the standard did not have a material impact on our consolidated financial statements. In March 2020, the FASB issued a new accounting standard to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates, commonly referred to as reference rate reform. The new standard provides temporary optional expedients and exceptions to current GAAP guidance on contract modifications and hedge accounting. Specifically, a modification to transition to an alternative reference rate is treated as an event that does not require contract remeasurement or reassessment of a previous accounting treatment. Moreover, for all types of hedging relationships, an entity may change the reference rate without having to dedesignate the hedging relationship. The standard is generally effective for all contract modifications made and hedging relationships evaluated through December 31, 2022. In January 2021, the FASB issued a new accounting standard to expand on the scope of the original March 2020 standard to include derivative instruments on discounting transactions. We are currently evaluating the impact that both standards will have on our consolidated financial statements.

Acquisitions - (Tables)

12 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition


	Amounts
Cash purchase price	$	13,400
Transaction costs	40
Accumulated cost (consideration transferred)	$	13,440

Intangible assets:
Developed-product-technology rights	$	13,007
Marketing-related rights	195
Inventory	367
Deferred tax liability, net	(24)
Deferred credit	(96)
Other liabilities, net	(9)
Total assets acquired, net	$	13,440

Aggregate acquisition date consideration to acquire an entity

The aggregate share acquisition date consideration to acquire the remaining 50% ownership in K-A and the fair value of Amgen’s preacquisition investment consisted of the following (in millions):


	Amounts
Total cash paid to Kirin	$	780
Fair value of contingent consideration obligation	45
Loss on settlement of preexisting relationship	(168)
Total consideration transferred to acquire K-A	657

Fair value of Amgen’s investment in K-A	825
Total acquisition date fair value	$	1,482

Revenues (Tables)

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of revenue by product and by geographic area

Revenues were as follows (in millions):


	Year ended December 31, 2020						Year ended December 31, 2019						Year ended December 31, 2018
	U.S.		ROW		Total		U.S.		ROW		Total		U.S.		ROW		Total
Enbrel® (etanercept)	$	4,855	$	141	$	4,996	$	5,050	$	176	$	5,226	$	4,807	$	207	$	5,014
Prolia® (denosumab)	1,830		933		2,763		1,772		900		2,672		1,500		791		2,291
Neulasta® (pegfilgrastim)	2,001		292		2,293		2,814		407		3,221		3,866		609		4,475
Otezla®(1)	1,790		405		2,195		139		39		178		—		—		—
XGEVA® (denosumab)	1,405		494		1,899		1,457		478		1,935		1,338		448		1,786
Aranesp® (darbepoetin alfa)	629		939		1,568		758		971		1,729		942		935		1,877
KYPROLIS® (carfilzomib)	710		355		1,065		654		390		1,044		583		385		968
Repatha® (evolocumab)	459		428		887		376		285		661		358		192		550
Other products	4,306		2,268		6,574		3,511		2,027		5,538		4,035		1,537		5,572
Total product sales(2)	17,985		6,255		24,240		16,531		5,673		22,204		17,429		5,104		22,533
Other revenues	511		673		1,184		693		465		1,158		929		285		1,214
Total revenues	$	18,496	$	6,928	$	25,424	$	17,224	$	6,138	$	23,362	$	18,358	$	5,389	$	23,747

____________

(1) Otezla® was acquired on November 21, 2019.

(2) Hedging gains and losses, which are included in product sales, were not material for the years ended December 31, 2020, 2019 and 2018.

Revenues earned from major customers

Certain information with respect to these customers was as follows (dollar amounts in millions):


	Years ended December 31,
	2020			2019			2018
AmerisourceBergen Corporation:
Gross product sales	$	14,743		$	12,301		$	12,091
% of total gross revenues	34		%	33		%	33		%
McKesson Corporation:
Gross product sales	$	13,779		$	11,795		$	11,434
% of total gross revenues	32		%	31		%	31		%
Cardinal Health, Inc.:
Gross product sales	$	7,332		$	6,538		$	7,475
% of total gross revenues	17		%	17		%	20		%

Stock-based compensation (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Components of stock-based compensation expense recognized in the Consolidated Statements of Income

The following table reflects the components of stock-based compensation expense recognized in our Consolidated Statements of Income (in millions):


	Years ended December 31,
	2020		2019		2018
RSUs	$	178	$	168	$	165
Performance units	118		105		117
Stock options	34		35		29
Total stock-based compensation expense, pretax	330		308		311
Tax benefit from stock-based compensation expense	(72)		(67)		(67)
Total stock-based compensation expense, net of tax	$	258	$	241	$	244

Summary of RSUs

The following table summarizes information regarding our RSUs:


	Year ended December 31, 2020
	Units (in millions)	Weighted-average grant date fair value
Balance nonvested as of December 31, 2019	3.1	$	174.97
Granted	1.1	$	235.63
Vested	(1.0)	$	167.23
Forfeited	(0.2)	$	190.15
Balance nonvested as of December 31, 2020	3.0	$	198.11

Weighted-average assumptions used and the resulting weighted-average grant date fair value of stock options

The weighted-average assumptions used in the option valuation model and the resulting weighted-average grant date fair values of stock options granted were as follows:


	Years ended December 31,
	2020			2019			2018
Closing price of our common stock on grant date	$	236.36		$	177.31		$	177.46
Expected volatility (average of implied and historical volatility)	28.1		%	23.5		%	24.6		%
Expected life (in years)	5.8			5.8			5.8
Risk-free interest rate	0.4		%	2.4		%	2.8		%
Expected dividend yield	3.0		%	3.1		%	2.9		%
Fair value of stock options granted	$	42.34		$	30.47		$	34.60

Summary of stock options

The following table summarizes information regarding our stock options:


	Year ended December 31, 2020
	Options (in millions)	Weighted- average exercise price		Weighted- average remaining contractual life (in years)	Aggregate intrinsic value (in millions)
Balance unexercised as of December 31, 2019	4.8	$	157.00
Granted	1.0	$	236.36
Exercised	(0.9)	$	117.90
Expired/forfeited	(0.2)	$	178.36
Balance unexercised as of December 31, 2020	4.7	$	179.90	7.3	$	243
Vested or expected to vest as of December 31, 2020	4.5	$	178.37	7.3	$	239
Exercisable as of December 31, 2020	1.5	$	150.80	5.5	$	120

Weighted average assumptions used and the resulting weighted average grant date fair value of performance units

The weighted-average assumptions used in the payout simulation model and the resulting weighted-average grant date fair values of performance units granted were as follows:


	Years ended December 31,
	2020			2019			2018
Closing price of our common stock on grant date	$	236.36		$	177.31		$	177.93
Volatility	27.5		%	22.1		%	23.8		%
Risk-free interest rate	0.2		%	2.3		%	2.6		%
Fair value of units granted	$	249.07		$	188.40		$	189.21

Income taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of income before income tax, domestic and foreign

Income before income taxes included the following (in millions):


	Years ended December 31,
	2020		2019		2018
Domestic	$	4,087	$	4,371	$	4,856
Foreign	4,046		4,767		4,689
Total income before income taxes	$	8,133	$	9,138	$	9,545

Provision for income taxes

The provision for income taxes included the following (in millions):


	Years ended December 31,
	2020		2019		2018
Current provision:
Federal	$	921	$	1,284	$	1,270
State	34		39		17
Foreign	277		277		227
Total current provision	1,232		1,600		1,514
Deferred (benefit) provision:
Federal	(321)		(276)		(317)
State	9		(22)		(7)
Foreign	(51)		(6)		(39)
Total deferred benefit	(363)		(304)		(363)
Total provision for income taxes	$	869	$	1,296	$	1,151

Significant components of deferred tax assets and liabilities

Significant components of our deferred tax assets and liabilities were as follows (in millions):


	December 31,
	2020		2019
Deferred income tax assets:
NOL and credit carryforwards	$	794	$	800
Accrued expenses	561		457
Expenses capitalized for tax	144		170
Stock-based compensation	92		91

Other	301		269
Total deferred income tax assets	1,892		1,787
Valuation allowance	(571)		(517)
Net deferred income tax assets	1,321		1,270

Deferred income tax liabilities:
Acquired intangible assets	(903)		(1,288)
Debt	(282)		(210)
Fixed assets	(148)		(53)
Other	(189)		(233)
Total deferred income tax liabilities	(1,522)		(1,784)
Total deferred income taxes, net	$	(201)	$	(514)

Reconciliation of total gross amounts of unrecognized tax benefits (excluding interest, penalties, foreign tax credits and the federal tax benefit of state taxes related to unrecognized tax benefits)

The reconciliations of the total gross amounts of UTBs were as follows (in millions):


	Years ended December 31,
	2020		2019		2018
Beginning balance	$	3,287	$	3,061	$	2,953
Additions based on tax positions related to the current year	165		215		173
Additions based on tax positions related to prior years	3		22		13
Reductions for tax positions of prior years	(35)		(11)		(17)

Settlements	(68)		—		(61)
Ending balance	$	3,352	$	3,287	$	3,061

Reconciliation between the federal statutory tax rate and effective tax rate

The reconciliations between the federal statutory tax rate applied to income before income taxes and our effective tax rate were as follows:


	Years ended December 31,
	2020		2019		2018
Federal statutory tax rate	21.0	%	21.0	%	21.0	%
Foreign earnings	(4.7)	%	(4.5)	%	(4.3)	%
Foreign-derived intangible income	(0.7)	%	(0.7)	%	(0.4)	%
Credits, Puerto Rico Excise Tax	(2.9)	%	(2.6)	%	(2.5)	%
2017 Tax Act, net impact on intercompany sales	—	%	—	%	(1.8)	%
Interest on uncertain tax positions	1.1	%	1.6	%	1.2	%
Credits, primarily federal R&D	(1.4)	%	(1.0)	%	(0.8)	%
Audit settlements	(1.0)	%	—	%	(0.3)	%
Other, net	(0.7)	%	0.4	%	—	%
Effective tax rate	10.7	%	14.2	%	12.1	%

Earnings per share (Tables)

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Computation for basic and diluted earnings per share

The computations for basic and diluted EPS were as follows (in millions, except per-share data):


	Years ended December 31,
	2020		2019		2018
Income (Numerator):
Net income for basic and diluted EPS	$	7,264	$	7,842	$	8,394

Shares (Denominator):
Weighted-average shares for basic EPS	586		605		661
Effect of dilutive securities	4		4		4
Weighted-average shares for diluted EPS	590		609		665

Basic EPS	$	12.40	$	12.96	$	12.70
Diluted EPS	$	12.31	$	12.88	$	12.62

Investments - (Tables)

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security


Types of securities as of December 31, 2020	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair values
U.S. Treasury notes	$	129	$	1	$	—	$	130
U.S. Treasury bills	4,948		—		—		4,948
Corporate debt securities:
Financial	—		—		—		—
Industrial	—		—		—		—
Other	—		—		—		—
Residential-mortgage-backed securities	—		—		—		—

Money market mutual funds	4,765		—		—		4,765
Other short-term interest-bearing securities	2		—		—		2
Total available-for-sale investments	$	9,844	$	1	$	—	$	9,845


Types of securities as of December 31, 2019	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair values
U.S. Treasury notes	$	359	$	1	$	—	$	360
U.S. Treasury bills	—		—		—		—
Corporate debt securities:
Financial	1,108		13		—		1,121
Industrial	824		10		—		834
Other	195		3		—		198
Residential-mortgage-backed securities	181		1		—		182

Money market mutual funds	5,250		—		—		5,250
Other short-term interest-bearing securities	289		—		—		289


Total available-for-sale investments	$	8,206	$	28	$	—	$	8,234

Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets

The fair values of available-for-sale investments by location in the Consolidated Balance Sheets were as follows (in millions):


	December 31,
Consolidated Balance Sheets locations	2020		2019
Cash and cash equivalents	$	5,464	$	5,360
Marketable securities	4,381		2,874

Total available-for-sale investments	$	9,845	$	8,234

Fair values of available-for-sale interest-bearing security investments by contractual maturity

The fair values of available-for-sale investments by contractual maturity, except for mortgage- and asset-backed securities that do not have a single maturity date, were as follows (in millions):


	December 31,
Contractual maturities	2020		2019
Maturing in one year or less	$	9,795	$	5,629
Maturing after one year through three years	50		2,304
Maturing after three years through five years	—		119


Residential-mortgage-backed securities	—		182
Total available-for-sale investments	$	9,845	$	8,234

Inventories (Tables)

12 Months Ended

Dec. 31, 2020

Inventory Disclosure [Abstract]

Inventories

Inventories consisted of the following (in millions):


	December 31,
	2020		2019
Raw materials	$	486	$	358
Work in process	2,437		2,227
Finished goods	970		999
Total inventories	$	3,893	$	3,584

Property, plant and equipment (Tables)

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Components of property, plant and equipment

Property, plant and equipment consisted of the following (dollar amounts in millions):


		December 31,
	Useful life (in years)	2020		2019
Land	—	$	259	$	263
Buildings and improvements	10-40	3,857		3,757
Manufacturing equipment	8-12	2,865		2,655
Laboratory equipment	8-12	1,257		1,236
Fixed equipment	12	2,406		2,338
Capitalized software	3-5	1,216		1,154
Other	5-10	1,091		975
Construction in progress	—	915		907
Property, plant and equipment, gross		13,866		13,285
Less accumulated depreciation and amortization		(8,977)		(8,357)
Property, plant and equipment, net		$	4,889	$	4,928

Property, plant and equipment by geographic information

Certain geographic information with respect to property, plant and equipment, net (long-lived assets), was as follows (in millions):


	December 31,
	2020		2019
United States	$	2,473	$	2,433
Puerto Rico	1,331		1,402
ROW	1,085		1,093
Total property, plant and equipment, net	$	4,889	$	4,928

Goodwill and other intangible assets - (Tables)

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill

The changes in the carrying amounts of goodwill were as follows (in millions):


	December 31,
	2020		2019
Beginning balance	$	14,703	$	14,699
Addition from acquisitions	—		26
Currency translation adjustments	(14)		(22)
Ending balance	$	14,689	$	14,703

Schedule of identifiable intangible assets

Other intangible assets consisted of the following (in millions):


	December 31,
	2020						2019
	Gross carrying amounts		Accumulated amortization		Other intangible assets, net		Gross carrying amounts		Accumulated amortization		Other intangible assets, net
Finite-lived intangible assets:
Developed-product-technology rights	$	25,591	$	(10,564)	$	15,027	$	25,575	$	(8,322)	$	17,253
Licensing rights	3,743		(2,791)		952		3,761		(2,398)		1,363
Marketing-related rights	1,367		(1,041)		326		1,382		(965)		417
R&D technology rights	1,317		(1,065)		252		1,273		(947)		326
Total finite-lived intangible assets	32,018		(15,461)		16,557		31,991		(12,632)		19,359
Indefinite-lived intangible assets:
IPR&D	30		—		30		54		—		54
Total other intangible assets	$	32,048	$	(15,461)	$	16,587	$	32,045	$	(12,632)	$	19,413

Leases - (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Summary information, components of lease costs, cash and noncash information on leases and other lease information

The following table summarizes information related to our leases, all of which are classified as operating, included in our Consolidated Balance Sheets (in millions):


	December 31,
Consolidated Balance Sheets locations	2020		2019
Assets:
Other assets	$	408	$	469
Liabilities:
Accrued liabilities	$	153	$	140
Other noncurrent liabilities	306		388
Total lease liabilities	$	459	$	528

The components of net lease costs were as follows (in millions):


	Years ended December 31,
Lease costs	2020		2019
Operating(1)	$	223	$	204






Sublease income	(34)		(33)
Total net lease costs	$	189	$	171

____________

(1) Includes short-term leases and variable lease costs, which were not material for the years ended December 31, 2020 and 2019.

The weighted-average remaining lease terms and weighted-average discount rates were as follows:


	December 31,
	2020		2019
Weighted-average remaining lease term (in years)	3.7		4.1
Weighted-average discount rate	3.1	%	3.3	%

Cash and noncash information related to our leases was as follows (in millions):


	Years ended December 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	177	$	148


ROU assets obtained in exchange for lease obligations:
Operating leases	$	101	$	163

Maturities of lease liabilities

Maturities of lease liabilities as of December 31, 2020, were as follows (in millions):


Maturity dates	Amounts
2021	$	164
2022	132
2023	105
2024	36
2025	15
Thereafter	36
Total lease payments(1)	488
Less imputed interest	(29)
Present value of lease liabilities	$	459

____________

Other current assets and accrued liabilities (Tables)

12 Months Ended

Dec. 31, 2020

Payables and Accruals [Abstract]

Schedule of Other Current Assets

Other current assets consisted of the following (in millions):


	December 31,
	2020		2019
Prepaid expenses	$	1,156	$	939
Corporate partner receivables	583		485
Tax receivables	216		186
Other	124		278
Total other current assets	$	2,079	$	1,888

Schedule of Accrued Liabilities

Accrued liabilities consisted of the following (in millions):


	December 31,
	2020		2019
Sales deductions	$	4,801	$	3,880
Employee compensation and benefits	1,098		981
Dividends payable	1,018		946
Income taxes payable	828		557
Sales returns reserve	474		564
Other	1,922		1,583
Total accrued liabilities	$	10,141	$	8,511

Financing arrangements (Tables)

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Carrying values and the fixed contractual coupon rates of long-term borrowings

Our borrowings consisted of the following (in millions):


	December 31,
	2020		2019
4.50% notes due 2020 (4.50% 2020 Notes)	—		300
2.125% notes due 2020 (2.125% 2020 Notes)	—		750
Floating Rate Notes due 2020	—		300
2.20% notes due 2020 (2.20% 2020 Notes)	—		700
3.45% notes due 2020 (3.45% 2020 Notes)	—		900
4.10% notes due 2021 (4.10% 2021 Notes)	—		1,000
1.85% notes due 2021 (1.85% 2021 Notes)	—		750
3.875% notes due 2021 (3.875% 2021 Notes)	—		1,750
1.25% €1,250 million notes due 2022 (1.25% 2022 euro Notes)	1,527		1,402
2.70% notes due 2022 (2.70% 2022 Notes)	500		500
2.65% notes due 2022 (2.65% 2022 Notes)	1,500		1,500
3.625% notes due 2022 (3.625% 2022 Notes)	750		750
0.41% CHF700 million bonds due 2023 (0.41% 2023 Swiss franc Bonds)	791		725
2.25% notes due 2023 (2.25% 2023 Notes)	750		750
3.625% notes due 2024 (3.625% 2024 Notes)	1,400		1,400
1.90% notes due 2025 (1.90% 2025 Notes)	500		—
3.125% notes due 2025 (3.125% 2025 Notes)	1,000		1,000
2.00% €750 million notes due 2026 (2.00% 2026 euro Notes)	916		841
2.60% notes due 2026 (2.60% 2026 Notes)	1,250		1,250
5.50% £475 million notes due 2026 (5.50% 2026 pound sterling Notes)	649		630
2.20% notes due 2027 (2.20% 2027 Notes)	1,750		—
3.20% notes due 2027 (3.20% 2027 Notes)	1,000		1,000
4.00% £700 million notes due 2029 (4.00% 2029 pound sterling Notes)	957		928
2.45% notes due 2030 (2.45% 2030 Notes)	1,250		—
2.30% notes due 2031 (2.30% 2031 Notes)	1,250		—
6.375% notes due 2037 (6.375% 2037 Notes)	478		552
6.90% notes due 2038 (6.90% 2038 Notes)	254		291
6.40% notes due 2039 (6.40% 2039 Notes)	333		466
3.15% notes due 2040 (3.15% 2040 Notes)	2,000		—
5.75% notes due 2040 (5.75% 2040 Notes)	373		412
4.95% notes due 2041 (4.95% 2041 Notes)	600		600
5.15% notes due 2041 (5.15% 2041 Notes)	729		974
5.65% notes due 2042 (5.65% 2042 Notes)	415		487
5.375% notes due 2043 (5.375% 2043 Notes)	185		261
4.40% notes due 2045 (4.40% 2045 Notes)	2,250		2,250
4.563% notes due 2048 (4.563% 2048 Notes)	1,415		1,415
3.375% notes due 2050 (3.375% 2050 Notes)	2,250		—
4.663% notes due 2051 (4.663% 2051 Notes)	3,541		3,541
2.77% notes due 2053 (2.77% 2053 Notes)	940		—
Other notes due 2097	100		100
Unamortized bond discounts, premiums and issuance costs, net	(1,188)		(868)
Fair value adjustments	566		296
Other	5		—
Total carrying value of debt	32,986		29,903
Less current portion	(91)		(2,953)
Total long-term debt	$	32,895	$	26,950

Schedule of interest rate derivatives

The effective interest rates on notes for which we have entered into interest rate swap contracts and the related notional amounts of these contracts were as follows (dollar amounts in millions):


	December 31, 2020			December 31, 2019
Notes	Notional amounts		Effective interest rates	Notional amounts		Effective interest rates
3.45% 2020 Notes	$	—	LIBOR + 1.1%	$	900	LIBOR + 1.1%
4.10% 2021 Notes	—		LIBOR + 1.7%	1,000		LIBOR + 1.7%
3.875% 2021 Notes	—		LIBOR + 2.0%	1,750		LIBOR + 2.0%
3.625% 2022 Notes	750		LIBOR + 2.7%	750		LIBOR + 1.6%
3.625% 2024 Notes	1,400		LIBOR + 3.2%	1,400		LIBOR + 1.4%
3.125% 2025 Notes	1,000		LIBOR + 1.8%	1,000		LIBOR + 0.9%
2.60% 2026 Notes	1,250		LIBOR + 1.8%	1,250		LIBOR + 0.3%
4.663% 2051 Notes(1)	1,500		LIBOR + 2.6%	1,500		LIBOR + 0.0%
Total notional amounts	$	5,900		$	9,550

____________

(1) Excludes an additional 1.5% of interest for the difference between the coupon rate paid to noteholders and the fixed rate received under the interest rate swap contracts.

Schedule of Long-term Debt Instruments Exchanged

The following principal amounts of each series of Old Notes were validly tendered and subsequently cancelled in connection with the Exchange Offer (in millions):


	Principal amount exchanged
6.375% 2037 Notes	$	74
6.90% 2038 Notes	37
6.40% 2039 Notes	133
5.75% 2040 Notes	39
5.15% 2041 Notes	245
5.65% 2042 Notes	72
5.375% 2043 Notes	76

Aggregate contractual maturities of long-term debt obligations

The aggregate contractual maturities of all borrowings due subsequent to December 31, 2020, are as follows (in millions):


Maturity dates	Amounts
2021	$	—
2022	4,277
2023	1,541
2024	1,400
2025	1,500
Thereafter	24,890
Total	$	33,608

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
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-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Stockholders' equity (Tables)

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Summary of activity under our stock repurchase program

Activity under our stock repurchase program, on a trade date basis, was as follows (in millions):


	Years ended December 31,
	2020			2019			2018
	Shares	Dollars		Shares*	Dollars		Shares*	Dollars
First quarter	4.3	$	933	15.9	$	3,031	56.4	$	10,787
Second quarter	2.6	591		13.1	2,349		18.2	3,190
Third quarter	3.0	752		6.2	1,170		8.7	1,713
Fourth quarter	5.3	1,221		5.1	1,090		11.1	2,165
Total stock repurchases	15.2	$	3,497	40.2	$	7,640	94.5	$	17,855

* Total shares do not add due to rounding.

Components of accumulated other comprehensive income

The components of AOCI were as follows (in millions):


	Foreign currency translation		Cash flow hedges		Available-for-sale securities		Other		AOCI
Balance as of December 31, 2017	$	(529)	$	(6)	$	(144)	$	—	$	(679)
Cumulative effect of change in accounting principle, net of tax	—		—		(9)		—		(9)
Foreign currency translation adjustments	(141)		—		—		—		(141)
Unrealized gains (losses)	—		61		(556)		—		(495)
Reclassification adjustments to income	—		262		365		—		627
Other losses	—		—		—		(2)		(2)
Income taxes	—		(76)		6		—		(70)
Balance as of December 31, 2018	(670)		241		(338)		(2)		(769)

Foreign currency translation adjustments	(48)		—		—		—		(48)
Unrealized gains	—		127		424		—		551
Reclassification adjustments to income	—		(211)		(56)		—		(267)
Other losses	—		—		—		(5)		(5)
Income taxes	—		18		(8)		—		10
Balance as of December 31, 2019	(718)		175		22		(7)		(528)

Foreign currency translation adjustments	9		—		—		—		9
Unrealized (losses) gains	—		(61)		6		—		(55)
Reclassification adjustments to income	—		(501)		(33)		—		(534)
Other losses	—		—		—		(7)		(7)
Income taxes	—		124		6		—		130
Balance as of December 31, 2020	$	(709)	$	(263)	$	1	$	(14)	$	(985)

Reclassifications out of accumulated other comprehensive income

Reclassifications out of AOCI and into earnings were as follows (in millions):


	Years ended December 31,
Components of AOCI	2020		2019		2018		Consolidated Statements of Income locations
Cash flow hedges:
Foreign currency contract gains (losses)	$	178	$	101	$	(21)	Product sales
Cross-currency swap contract gains (losses)	323		110		(241)		Interest and other income, net

	501		211		(262)		Income before income taxes
	(110)		(46)		55		Provision for income taxes
	$	391	$	165	$	(207)	Net income
Available-for-sale securities:
Net realized gains (losses)	$	33	$	56	$	(365)	Interest and other income, net
	(7)		(14)		3		Provision for income taxes
	$	26	$	42	$	(362)	Net income

Fair value measurement - (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Fair value of each major class of financial assets and liabilities measured at fair value on a recurring basis

The fair values of each major class of the Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in millions):


Fair value measurement as of December 31, 2020, using:	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets:
Available-for-sale securities:
U.S. Treasury notes	$	130	$	—	$	—	$	130
U.S. Treasury bills	4,948		—		—		4,948
Corporate debt securities:
Financial	—		—		—		—
Industrial	—		—		—		—
Other	—		—		—		—
Residential-mortgage-backed securities	—		—		—		—

Money market mutual funds	4,765		—		—		4,765
Other short-term interest-bearing securities	—		2		—		2
Equity securities	477		—		—		477
Derivatives:
Foreign currency contracts	—		28		—		28
Cross-currency swap contracts	—		255		—		255
Interest rate swap contracts	—		66		—		66
Total assets	$	10,320	$	351	$	—	$	10,671
Liabilities:
Derivatives:
Foreign currency contracts	$	—	$	237	$	—	$	237
Cross-currency swap contracts	—		318		—		318
Interest rate swap contracts	—		15		—		15
Contingent consideration obligations	—		—		33		33
Total liabilities	$	—	$	570	$	33	$	603


Fair value measurement as of December 31, 2019, using:	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets:
Available-for-sale securities:
U.S. Treasury notes	$	360	$	—	$	—	$	360
U.S. Treasury bills	—		—		—		—
Corporate debt securities:
Financial	—		1,121		—		1,121
Industrial	—		834		—		834
Other	—		198		—		198
Residential-mortgage-backed securities	—		182		—		182

Money market mutual funds	5,250		—		—		5,250
Other short-term interest-bearing securities	—		289		—		289
Equity securities	303		—		—		303
Derivatives:
Foreign currency contracts	—		224		—		224
Cross-currency swap contracts	—		66		—		66
Interest rate swap contracts	—		259		—		259
Total assets	$	5,913	$	3,173	$	—	$	9,086
Liabilities:
Derivatives:
Foreign currency contracts	$	—	$	31	$	—	$	31
Cross-currency swap contracts	—		315		—		315
Interest rate swap contracts	—		—		—		—
Contingent consideration obligations	—		—		61		61
Total liabilities	$	—	$	346	$	61	$	407

Derivative instruments - (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of notional amounts and interest rates for cross-currency swaps

The notional amounts and interest rates of our cross-currency swaps as of December 31, 2020, were as follows (notional amounts in millions):


	Foreign currency				U.S. dollars
Hedged notes	Notional amounts		Interest rates		Notional amounts		Interest rates

1.25% 2022 euro Notes	€	1,250	1.3	%	$	1,388	3.2	%
0.41% 2023 Swiss franc Bonds	CHF	700	0.4	%	$	704	3.4	%
2.00% 2026 euro Notes	€	750	2.0	%	$	833	3.9	%
5.50% 2026 pound sterling Notes	£	475	5.5	%	$	747	6.0	%
4.00% 2029 pound sterling Notes	£	700	4.0	%	$	1,111	4.5	%

Effective portion of the unrealized gain (loss) recognized in Other Comprehensive Income for our derivative instruments designated as cash flow hedges

The unrealized losses and gains recognized in AOCI for our derivative instruments designated as cash flow hedges were as follows (in millions):


	Years ended December 31,
Derivatives in cash flow hedging relationships	2020		2019		2018
Foreign currency contracts	$	(251)	$	148	$	348
Cross-currency swap contracts	190		(21)		(287)
Forward interest rate contracts	—		—		—
Total unrealized (losses) gains	$	(61)	$	127	$	61

Derivatives in fair value hedging relationships

The hedged liabilities and related cumulative-basis adjustments for fair value hedges of those liabilities were recorded in the Consolidated Balance Sheets as follows (in millions):


	Carrying amounts of hedged liabilities(1)				Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities(2)
	December 31,				December 31,
Consolidated Balance Sheets locations	2020		2019		2020		2019
Current portion of long-term debt	$	89	$	903	$	89	$	4
Long-term debt	$	6,258	$	8,814	$	477	$	292

____________

Summary of amounts of income and expense line items


	Year ended December 31, 2020
	Product sales		Interest and other income, net		Interest (expense), net
Total amounts recorded in income and (expense) line items presented in the Consolidated Statements of Income	$	24,240	$	256	$	(1,262)
The effects of cash flow and fair value hedging:
Gains on cash flow hedging relationships reclassified out of AOCI:
Foreign currency contracts	$	178	$	—	$	—
Cross-currency swap contracts	$	—	$	323	$	—
Gains (losses) on fair value hedging relationships—interest rate swap agreements:
Hedged items(1)	$	—	$	—	$	315
Derivatives designated as hedging instruments	$	—	$	—	$	(204)


	Year ended December 31, 2019
	Product sales		Interest and other income, net		Interest (expense), net
Total amounts recorded in income and (expense) line items presented in the Consolidated Statements of Income	$	22,204	$	753	$	(1,289)
The effects of cash flow and fair value hedging:
Gains on cash flow hedging relationships reclassified out of AOCI:
Foreign currency contracts	$	101	$	—	$	—
Cross-currency swap contracts	$	—	$	110	$	—
(Losses) gains on fair value hedging relationships—interest rate swap agreements:
Hedged items(1)	$	—	$	—	$	(349)
Derivatives designated as hedging instruments	$	—	$	—	$	352


	Year ended December 31, 2018
	Product sales		Interest and other income (expense), net		Interest (expense), net
Total amounts recorded in income and (expense) line items presented in the Consolidated Statements of Income	$	22,533	$	674	$	(1,392)
The effects of cash flow and fair value hedging:
(Losses) on cash flow hedging relationships reclassified out of AOCI:
Foreign currency contracts	$	(21)	$	—	$	—
Cross-currency swap contracts	$	—	$	(241)	$	—

Gains (losses) on fair value hedging relationships—interest rate swap agreements:
Hedged items(1)	$	—	$	—	$	65
Derivatives designated as hedging instruments	$	—	$	—	$	(42)

__________

Fair values of derivatives included in the Consolidated Balance Sheets

The fair values of derivatives included in the Consolidated Balance Sheets were as follows (in millions):


	Derivative assets			Derivative liabilities
December 31, 2020	Consolidated Balance Sheets locations	Fair values		Consolidated Balance Sheets locations	Fair values
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current assets/ Other assets	$	28	Accrued liabilities/ Other noncurrent liabilities	$	237
Cross-currency swap contracts	Other current assets/ Other assets	255		Accrued liabilities/ Other noncurrent liabilities	318
Interest rate swap contracts	Other current assets/ Other assets	66		Accrued liabilities/ Other noncurrent liabilities	15
Total derivatives designated as hedging instruments		349			570
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets	—		Accrued liabilities	—
Total derivatives not designated as hedging instruments		—			—
Total derivatives		$	349		$	570

	Derivative assets			Derivative liabilities
December 31, 2019	Consolidated Balance Sheets locations	Fair values		Consolidated Balance Sheets locations	Fair values
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current assets/ Other assets	$	223	Accrued liabilities/ Other noncurrent liabilities	$	31
Cross-currency swap contracts	Other current assets/ Other assets	66		Accrued liabilities/ Other noncurrent liabilities	315
Interest rate swap contracts	Other current assets/ Other assets	259		Accrued liabilities/ Other noncurrent liabilities	—
Total derivatives designated as hedging instruments		548			346
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets	1		Accrued liabilities	—
Total derivatives not designated as hedging instruments		1			—
Total derivatives		$	549		$	346

Contingencies and commitments - (Tables)

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

U.S. repatriation tax commitments

The following table summarizes the remaining scheduled repatriation tax payments as of December 31, 2020 (in millions):


	Amounts
2021	$	587
2022	587
2023	1,100
2024	1,467
2025	1,834
Total remaining U.S. repatriation tax commitments	$	5,575

Quarterly financial data (unaudited) (Tables)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Quarterly financial data (unaudited)

Quarterly financial data is summarized as follows (in millions, except per-share data):


	2020 Quarters ended
	December 31		September 30		June 30		March 31
Product sales	$	6,334	$	6,104	$	5,908	$	5,894
Gross profit from product sales	$	4,737	$	4,543	$	4,420	$	4,381
Net income	$	1,615	$	2,021	$	1,803	$	1,825
Earnings per share:
Basic	$	2.78	$	3.45	$	3.07	$	3.09
Diluted	$	2.76	$	3.43	$	3.05	$	3.07

	2019 Quarters ended
	December 31		September 30		June 30		March 31
Product sales	$	5,881	$	5,463	$	5,574	$	5,286
Gross profit from product sales	$	4,628	$	4,427	$	4,562	$	4,231
Net income	$	1,703	$	1,968	$	2,179	$	1,992
Earnings per share:
Basic	$	2.87	$	3.29	$	3.59	$	3.20
Diluted	$	2.85	$	3.27	$	3.57	$	3.18

Summary of significant accounting policies - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($) segment	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Jan. 01, 2019 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of business segment \| segment	1
Change in estimate of sales deductions for prior period sales as a pct of total sales deductions (less than)	1.00%
Sales return provisions as a percentage of gross product sales (less than)	1.00%
Advertising cost	$ 962	$ 789	$ 674
Present value of lease liabilities	459	528
Operating lease, Right-of-use asset	$ 408	$ 469
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Present value of lease liabilities				$ 510
Operating lease, Right-of-use asset				$ 439
Minimum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue payment term	30 days
Maximum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue payment term	120 days

Acquisitions - Narrative (Details) $ in Millions			3 Months Ended	12 Months Ended
Acquisitions - Narrative (Details) $ in Millions	Nov. 21, 2019 USD ($)	Jul. 15, 2019 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2020 USD ($) market	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Business Acquisition [Line Items]
Goodwill				$ 14,689	$ 14,703	$ 14,699
Estimated blended statutory rate				20.00%
Kirin-Amgen, Inc. (K-A)
Business Acquisition [Line Items]
Percentage of voting interests acquired			50.00%
Ownership percentage			50.00%
Otezla
Business Acquisition [Line Items]
Approved markets \| market				50
Cash paid	$ 13,400
Adjustments to carrying value of intangible assets	119
Adjustments to deferred tax liability	24
Adjustments to deferred credit	$ 96
Otezla \| Developed Technology Rights
Business Acquisition [Line Items]
Weighted average period of amortization	8 years 6 months
Nuevolution
Business Acquisition [Line Items]
Consideration transferred		$ 183
Fair value of liabilities assumed, deferred tax liabilities		22
Fair value of assets acquired and liabilities assumed, net other assets and liabilities		29
Goodwill		$ 26
Nuevolution \| R & D Technology rights
Business Acquisition [Line Items]
Weighted average period of amortization		10 years
Finite-lived Intangible Assets Acquired		$ 150
Kirin-Amgen, Inc. (K-A)
Business Acquisition [Line Items]
Consideration transferred			$ 657
Percentage of voting interests acquired			50.00%
Ownership interest in acquiree prior to acquisition (as a percent)			50.00%
Net gain on remeasurement			$ 80
Cash paid			780
Estimated fair values of contingent consideration obligations			45
Fair value of assets acquired, cash			977
Fair value of liabilities assumed, deferred tax liabilities			102
Fair value of assets acquired and liabilities assumed, net other assets and liabilities			131
Goodwill			$ 6
Kirin-Amgen, Inc. (K-A) \| Licensing rights
Business Acquisition [Line Items]
Weighted average period of amortization			4 years
Fair value of assets acquired, licensing rights			$ 470
Assembled Workforce [Member] \| Otezla \| Marketing-Related Rights
Business Acquisition [Line Items]
Weighted average period of amortization	5 years
Inventories [Member] \| Otezla
Business Acquisition [Line Items]
Acquired assets, weighted useful life	2 years 6 months

Acquisitions - Otezla (Details) - Otezla $ in Millions	Nov. 21, 2019 USD ($)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Cash purchase price	$ 13,400
Transaction costs	40
Accumulated cost (consideration transferred)	13,440
Intangible assets:
Inventory	367
Deferred tax liability, net	(24)
Deferred credit	(96)
Other liabilities, net	(9)
Total assets acquired, net	13,440
Developed Technology Rights
Intangible assets:
Business acquired asset acquisition, Finite-lived intangible assets acquired	$ 13,007
Weighted average period of amortization	8 years 6 months
Marketing-Related Rights
Intangible assets:
Business acquired asset acquisition, Finite-lived intangible assets acquired	$ 195
Marketing-Related Rights \| Assembled Workforce [Member]
Intangible assets:
Weighted average period of amortization	5 years

Acquisitions - Aggregate Consideration Paid (Details) - USD ($) $ in Millions		3 Months Ended
	Jul. 15, 2019	Mar. 31, 2018
Nuevolution
Business Acquisition [Line Items]
Total consideration transferred to acquire K-A	$ 183
Kirin-Amgen, Inc. (K-A)
Business Acquisition [Line Items]
Total cash paid to Kirin		$ 780
Fair value of contingent consideration obligation		45
Loss on settlement of preexisting relationship		(168)
Total consideration transferred to acquire K-A		657
Fair value of Amgen’s investment in K-A		825
Total acquisition date fair value		$ 1,482
R & D Technology rights \| Nuevolution
Business Acquisition [Line Items]
Weighted average period of amortization	10 years

Revenues - Narrative (Details) $ in Millions	3 Months Ended								12 Months Ended
Revenues - Narrative (Details) $ in Millions	Dec. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2020 USD ($) segment customer	Dec. 31, 2019 USD ($) customer	Dec. 31, 2018 USD ($) customer
Revenue from Contract with Customer [Abstract]
Number of operating segments \| segment									1
Revenue from External Customer [Line Items]
Number of major customers (as defined) accounting for more than 10% of total revenue \| customer									3	3	3
Major customers (as defined) accounting for more than 10% of gross trade receivables \| customer									3	3
Combined trade receivables for all major customers (as defined) as a percentage of net trade receivables	74.00%				73.00%				74.00%	73.00%
Percentage of worldwide gross revenues derived from major customers (as defined) on a combined basis									83.00%
Total product sales									$ 25,424	$ 23,362	$ 23,747
Percentage of net trade receivables due from customers located outside the United States, primarily in Europe	28.00%				27.00%				28.00%	27.00%
US [Member]
Revenue from External Customer [Line Items]
Total product sales									$ 18,496	$ 17,224	18,358
ROW [Member]
Revenue from External Customer [Line Items]
Total product sales									6,928	6,138	5,389
Product sales [Member]
Revenue from External Customer [Line Items]
Total product sales	$ 6,334	$ 6,104	$ 5,908	$ 5,894	$ 5,881	$ 5,463	$ 5,574	$ 5,286	24,240	22,204	22,533
Product sales [Member] \| US [Member]
Revenue from External Customer [Line Items]
Total product sales									17,985	16,531	17,429
Product sales [Member] \| ROW [Member]
Revenue from External Customer [Line Items]
Total product sales									6,255	5,673	5,104
Enbrel® (etanercept) [Member]
Revenue from External Customer [Line Items]
Total product sales									4,996	5,226	5,014
Enbrel® (etanercept) [Member] \| US [Member]
Revenue from External Customer [Line Items]
Total product sales									4,855	5,050	4,807
Enbrel® (etanercept) [Member] \| ROW [Member]
Revenue from External Customer [Line Items]
Total product sales									141	176	207
Prolia® (denosumab) [Member]
Revenue from External Customer [Line Items]
Total product sales									2,763	2,672	2,291
Prolia® (denosumab) [Member] \| US [Member]
Revenue from External Customer [Line Items]
Total product sales									1,830	1,772	1,500
Prolia® (denosumab) [Member] \| ROW [Member]
Revenue from External Customer [Line Items]
Total product sales									933	900	791
Neulasta® (pegfilgrastim) [Member]
Revenue from External Customer [Line Items]
Total product sales									2,293	3,221	4,475
Neulasta® (pegfilgrastim) [Member] \| US [Member]
Revenue from External Customer [Line Items]
Total product sales									2,001	2,814	3,866
Neulasta® (pegfilgrastim) [Member] \| ROW [Member]
Revenue from External Customer [Line Items]
Total product sales									292	407	609
Otezla [Member]
Revenue from External Customer [Line Items]
Total product sales									2,195	178	0
Otezla [Member] \| US [Member]
Revenue from External Customer [Line Items]
Total product sales									1,790	139	0
Otezla [Member] \| ROW [Member]
Revenue from External Customer [Line Items]
Total product sales									405	39	0
XGEVA® (denosumab) [Member]
Revenue from External Customer [Line Items]
Total product sales									1,899	1,935	1,786
XGEVA® (denosumab) [Member] \| US [Member]
Revenue from External Customer [Line Items]
Total product sales									1,405	1,457	1,338
XGEVA® (denosumab) [Member] \| ROW [Member]
Revenue from External Customer [Line Items]
Total product sales									494	478	448
Aranesp® (darbepoetin alfa) [Member]
Revenue from External Customer [Line Items]
Total product sales									1,568	1,729	1,877
Aranesp® (darbepoetin alfa) [Member] \| US [Member]
Revenue from External Customer [Line Items]
Total product sales									629	758	942
Aranesp® (darbepoetin alfa) [Member] \| ROW [Member]
Revenue from External Customer [Line Items]
Total product sales									939	971	935
Kyprolis [Member]
Revenue from External Customer [Line Items]
Total product sales									1,065	1,044	968
Kyprolis [Member] \| US [Member]
Revenue from External Customer [Line Items]
Total product sales									710	654	583
Kyprolis [Member] \| ROW [Member]
Revenue from External Customer [Line Items]
Total product sales									355	390	385
Repatha (evolocumab) [Member]
Revenue from External Customer [Line Items]
Total product sales									887	661	550
Repatha (evolocumab) [Member] \| US [Member]
Revenue from External Customer [Line Items]
Total product sales									459	376	358
Repatha (evolocumab) [Member] \| ROW [Member]
Revenue from External Customer [Line Items]
Total product sales									428	285	192
Other products [Member]
Revenue from External Customer [Line Items]
Total product sales									6,574	5,538	5,572
Other products [Member] \| US [Member]
Revenue from External Customer [Line Items]
Total product sales									4,306	3,511	4,035
Other products [Member] \| ROW [Member]
Revenue from External Customer [Line Items]
Total product sales									2,268	2,027	1,537
Other revenues [Member]
Revenue from External Customer [Line Items]
Total product sales									1,184	1,158	1,214
Other revenues [Member] \| US [Member]
Revenue from External Customer [Line Items]
Total product sales									511	693	929
Other revenues [Member] \| ROW [Member]
Revenue from External Customer [Line Items]
Total product sales									673	465	285
AmerisourceBergen Corporation [Member] \| Product sales [Member]
Revenue from External Customer [Line Items]
Total product sales									14,743	12,301	12,091
McKesson Corporation [Member] \| Product sales [Member]
Revenue from External Customer [Line Items]
Total product sales									13,779	11,795	11,434
Cardinal Health, Inc. [Member] \| Product sales [Member]
Revenue from External Customer [Line Items]
Total product sales									$ 7,332	$ 6,538	$ 7,475

Revenues - Customer Concentration, Product Sales (Details) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2020 USD ($) customer	Dec. 31, 2019 USD ($) customer	Dec. 31, 2018 USD ($) customer
Revenue, Major Customer [Line Items]
Product sales									$ 25,424	$ 23,362	$ 23,747
Number of major customers (as defined) accounting for more than 10% of total revenue \| customer									3	3	3
Major customers (as defined) accounting for more than 10% of gross trade receivables \| customer									3	3
Product [Member]
Revenue, Major Customer [Line Items]
Product sales	$ 6,334	$ 6,104	$ 5,908	$ 5,894	$ 5,881	$ 5,463	$ 5,574	$ 5,286	$ 24,240	$ 22,204	$ 22,533
Product [Member] \| AmerisourceBergen Corporation [Member]
Revenue, Major Customer [Line Items]
Product sales									$ 14,743	$ 12,301	$ 12,091
Gross product sales to major customer (as defined) as a percentage of total gross revenues									34.00%	33.00%	33.00%
Product [Member] \| McKesson Corporation [Member]
Revenue, Major Customer [Line Items]
Product sales									$ 13,779	$ 11,795	$ 11,434
Gross product sales to major customer (as defined) as a percentage of total gross revenues									32.00%	31.00%	31.00%
Product [Member] \| Cardinal Health, Inc. [Member]
Revenue, Major Customer [Line Items]
Product sales									$ 7,332	$ 6,538	$ 7,475
Gross product sales to major customer (as defined) as a percentage of total gross revenues									17.00%	17.00%	20.00%

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Stock-based compensation (Textual) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amount by which the pool of available shares will be reduced for each stock option granted	1
The amount of common stock available under the plan for future grants and/or issuances (in shares)	23,000,000
Description of vesting of restricted stock units and stock options	RSUs and stock options generally vest in equal amounts on the second, third and fourth anniversaries of the grant date.
Total unrecognized compensation cost related to nonvested awards	$ 345
Weighted average number of years over which compensation cost related to nonvested awards is expected to be recognized	1 year 9 months 18 days
Period over which the grants of equity instruments vest	3 years
Number of common shares issued for each performance unit earned	1	1	1
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
The number of shares by which the pool of available shares will be reduced for other types of awards granted	1.9
Number of shares added back for tax withholding on full value awards	1.9
Weighted average grant date fair value, granted (in usd per share)	$ 235.63	$ 182.12	$ 179.18
Total fair value of units that vested during the year	$ 161	$ 160	$ 167
Units outstanding (in shares)	3,000,000.0	3,100,000
Weighted-average grant date fair value	$ 198.11	$ 174.97
Units granted (in shares)	1,100,000
Units, forfeited (in shares)	200,000
Weighted average grant date fair value, forfeited (in usd per share)	$ 190.15
Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period of stock options from date of grant	10 years
Total intrinsic value of stock options exercised during the year	$ 98	$ 68	53
Actual tax benefits realized from tax deductions from option exercises	$ 21	$ 15	$ 12
Performance units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
The number of shares by which the pool of available shares will be reduced for other types of awards granted	1.9
Number of shares added back for tax withholding on full value awards	1.9
Weighted average grant date fair value, granted (in usd per share)	$ 249.07	$ 188.40	$ 189.21
Total fair value of units that vested during the year	$ 230	$ 176	$ 133
Total unrecognized compensation cost related to nonvested awards	$ 127
Weighted average number of years over which compensation cost related to nonvested awards is expected to be recognized	1 year
Units outstanding (in shares)	1,800,000	2,000,000.0
Weighted-average grant date fair value	$ 207.52	$ 185.64
Units granted (in shares)	600,000
Units, forfeited (in shares)	100,000
Weighted average grant date fair value, forfeited (in usd per share)	$ 199.86

Stock-based compensation (Components of Stock-based Compensation Expense) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Components of stock-based compensation expense [Abstract]
Total stock-based compensation expense, pretax	$ 330	$ 308	$ 311
Tax benefit from stock-based compensation expense	(72)	(67)	(67)
Total stock-based compensation expense, net of tax	258	241	244
RSUs [Member]
Components of stock-based compensation expense [Abstract]
Total stock-based compensation expense, pretax	178	168	165
Performance units [Member]
Components of stock-based compensation expense [Abstract]
Total stock-based compensation expense, pretax	118	105	117
Stock options [Member]
Components of stock-based compensation expense [Abstract]
Total stock-based compensation expense, pretax	$ 34	$ 35	$ 29

Stock-based compensation (Summary of RSUs) (Details) - RSUs [Member] - $ / shares shares in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Units
Balance nonvested at beginning of period (in shares)	3.1
Granted (in shares)	1.1
Vested (in shares)	(1.0)
Forfeited (in shares)	(0.2)
Balance nonvested at end of period (in shares)	3.0	3.1
Weighted-average grant date fair value
Balance nonvested at beginning of period (in usd per share)	$ 174.97
Granted (in usd per share)	235.63	$ 182.12	$ 179.18
Vested (in usd per share)	167.23
Forfeited (in usd per share)	190.15
Balance nonvested at end of period (in usd per share)	$ 198.11	$ 174.97

Stock-based compensation Stock-based compensation (Summary of Stock Options) (Details) - Share-based Payment Arrangement, Option [Member] - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Closing price of our common stock on grant date (in usd per share)	$ 236.36	$ 177.31	$ 177.46
Volatility	28.10%	23.50%	24.60%
Expected life (in years)	5 years 9 months 18 days	5 years 9 months 18 days	5 years 9 months 18 days
Risk-free interest rate	0.40%	2.40%	2.80%
Expected dividend yield	3.00%	3.10%	2.90%
Granted (in usd per share)	$ 42.34	$ 30.47	$ 34.60

Stock-based compensation (Summary of Stock Options) (Details) - Stock options [Member] $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($) $ / shares shares
Options
Balance unexercised at beginning of period (in shares) \| shares	4.8
Granted (in shares) \| shares	1.0
Exercised (in shares) \| shares	(0.9)
Expired/forfeited (in shares) \| shares	(0.2)
Balance unexercised at end of period (in shares) \| shares	4.7
Vested or expected to vest (in shares) \| shares	4.5
Exercisable (in shares) \| shares	1.5
Weighted- average exercise price
Balance unexercised at beginning of period (in usd per share) \| $ / shares	$ 157.00
Granted (in usd per share) \| $ / shares	236.36
Exercised (in usd per share) \| $ / shares	117.90
Expired/forfeited (in usd per share) \| $ / shares	178.36
Balance unexercised at end of period (in shares) \| $ / shares	179.90
Weighted-average exercise price, vested or expected to vest (in usd per share) \| $ / shares	178.37
Weighted-average exercise price, exercisable (in usd per share) \| $ / shares	$ 150.80
Stock options information [Abstract]
Weighted-average remaining contractual life (years), unexercised	7 years 3 months 18 days
Weighted-average remaining contractual life (years), vested or expected to vest	7 years 3 months 18 days
Weighted-average remaining contractual life (years), exercisable	5 years 6 months
Aggregate intrinsic value, unexercised \| $	$ 243
Aggregate intrinsic value, vested or expected to vest \| $	239
Aggregate intrinsic value, exercisable \| $	$ 120

Stock-based compensation (Weighted-average Assumptions) (Details) - Performance units [Member] - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Weighted-average assumptions and resulting weighted-average grant date fair values [Abstract]
Closing price of our common stock on grant date (in usd per share)	$ 236.36	$ 177.31	$ 177.93
Volatility	27.50%	22.10%	23.80%
Risk-free interest rate	0.20%	2.30%	2.60%
Fair value of unit (in usd per share)	$ 249.07	$ 188.40	$ 189.21

Defined contribution plan (Details) - USD ($) $ in Millions	12 Months Ended
Defined contribution plan (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Retirement Benefits [Abstract]
Expense attributed to Retirement and Savings Plan	$ 231	$ 220	$ 173

Income taxes (Income Before Income Taxes) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Examination [Line Items]
Income before income taxes	$ 8,133	$ 9,138	$ 9,545
Domestic [Member]
Income Tax Examination [Line Items]
Income before income taxes	4,087	4,371	4,856
Foreign [Member]
Income Tax Examination [Line Items]
Income before income taxes	$ 4,046	$ 4,767	$ 4,689

Income taxes (Provision for Income Taxes) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Current provision:
Federal	$ 921	$ 1,284	$ 1,270
State	34	39	17
Foreign	277	277	227
Total current provision	1,232	1,600	1,514
Deferred (benefit) provision:
Federal	(321)	(276)	(317)
State	9	(22)	(7)
Foreign	(51)	(6)	(39)
Total deferred benefit	(363)	(304)	(363)
Total provision for income taxes	$ 869	$ 1,296	$ 1,151

Income taxes (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Deferred income tax assets:
NOL and credit carryforwards	$ 794	$ 800
Accrued expenses	561	457
Expenses capitalized for tax	144	170
Stock-based compensation	92	91
Other	301	269
Total deferred income tax assets	1,892	1,787
Valuation allowance	(571)	(517)
Net deferred income tax assets	1,321	1,270
Deferred income tax liabilities:
Acquired intangible assets	(903)	(1,288)
Debt	(282)	(210)
Deferred Tax Liabilities, Property, Plant and Equipment	(148)	(53)
Other	(189)	(233)
Total deferred income tax liabilities	(1,522)	(1,784)
Total deferred income taxes, net	$ (201)	$ (514)

Income taxes (Textual) (Details) - USD ($)	12 Months Ended
Income taxes (Textual) (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Tax Credit Carryforward [Line Items]
Interest and penalties related to unrecognized tax benefits recognized in income tax provision	$ 116,000,000	$ 198,000,000	$ 137,000,000
Accrued interest and penalties associated with unrecognized tax benefits	783,000,000	667,000,000
Income taxes paid	1,400,000,000	$ 1,900,000,000	$ 1,900,000,000
Federal [Member]
Tax Credit Carryforward [Line Items]
Tax credit carryforwards available to reduce income taxes	20,000,000
NOL carryforwards available to reduce income taxes	143,000,000
NOL carryforwards, valuation allowance	6,000,000
Federal [Member] \| Operating Losses That Expire Between 2021 and 2035 [Member]
Tax Credit Carryforward [Line Items]
NOL carryforwards, valuation allowance	0
Federal [Member] \| Expiration in tax years between 2023 and 2035 [Member]
Tax Credit Carryforward [Line Items]
Tax credit carryforwards, valuation allowance	0
State [Member]
Tax Credit Carryforward [Line Items]
Tax credit carryforwards available to reduce income taxes	681,000,000
Tax credit carryforwards, valuation allowance	585,000,000
NOL carryforwards available to reduce income taxes	167,000,000
Foreign [Member]
Tax Credit Carryforward [Line Items]
NOL carryforwards available to reduce income taxes	1,900,000,000
NOL carryforwards, valuation allowance	754,000,000
NOLs with no valuation allowance and no expiration	861,000,000
Foreign [Member] \| Operating Losses That Expire Between 2021 and 2030 [Member]
Tax Credit Carryforward [Line Items]
NOL carryforwards, valuation allowance	$ 0

Income taxes (Reconciliation of Total Gross Amounts of UTBs) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reconciliation of total gross amounts of unrecognized tax benefits (excluding interest, penalties, foreign tax credits and the federal tax benefit of state taxes related to unrecognized tax benefits)
Beginning balance	$ 3,287	$ 3,061	$ 2,953
Additions based on tax positions related to the current year	165	215	173
Additions based on tax positions related to prior years	3	22	13
Reductions for tax positions of prior years	(35)	(11)	(17)
Settlements	(68)	0	(61)
Ending balance	$ 3,352	$ 3,287	$ 3,061

Income taxes (Reconciliation of Federal Statutory Tax Rate) (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Federal statutory tax rate	21.00%	21.00%	21.00%
Foreign earnings	(4.70%)	(4.50%)	(4.30%)
Foreign-derived intangible income	(0.70%)	(0.70%)	(0.40%)
Credits, Puerto Rico Excise Tax	(2.90%)	(2.60%)	(2.50%)
2017 Tax Act, net impact on intercompany sales	0.00%	0.00%	(1.80%)
Interest on uncertain tax positions	1.10%	1.60%	1.20%
Credits, primarily federal R&D	(1.40%)	(1.00%)	(0.80%)
Audit settlements	(1.00%)	0.00%	(0.30%)
Other, net	(0.70%)	0.40%	0.00%
Effective tax rate	10.70%	14.20%	12.10%

Earnings per share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income (Numerator):
Net income for basic and diluted EPS	$ 1,615	$ 2,021	$ 1,803	$ 1,825	$ 1,703	$ 1,968	$ 2,179	$ 1,992	$ 7,264	$ 7,842	$ 8,394
Shares (Denominator):
Weighted-average shares for basic EPS									586	605	661
Effect of dilutive securities (in shares)									4	4	4
Weighted-average shares for diluted EPS									590	609	665
Basic EPS (in usd per share)	$ 2.78	$ 3.45	$ 3.07	$ 3.09	$ 2.87	$ 3.29	$ 3.59	$ 3.20	$ 12.40	$ 12.96	$ 12.70
Diluted EPS (in usd per share)	$ 2.76	$ 3.43	$ 3.05	$ 3.07	$ 2.85	$ 3.27	$ 3.57	$ 3.18	$ 12.31	$ 12.88	$ 12.62

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Collaborations - Novartis AG (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenues	$ 25,424	$ 23,362	$ 23,747
Collaborative Arrangement with Novartis AG [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Potential future milestone payment	100
Collaborative Arrangement with Novartis AG [Member] \| Other revenues [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenues			295
Collaborative Arrangement with Novartis AG [Member] \| Selling, general and administrative [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cost paid			44
Cost recoveries	192	187
Collaborative Arrangement with Novartis AG [Member] \| Cost of sales [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalties due	$ 139	$ 115	$ 43

Collaborations - Bayer HealthCare Pharmaceuticals Inc. (Details) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($) country	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenues	$ 25,424	$ 23,362	$ 23,747
US [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenues	$ 18,496	17,224	18,358
Collaborative Arrangement with Bayer [Member] \| Nexavar [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of countries product is marketed and sold \| country	100
Collaborative Arrangement with Bayer [Member] \| Nexavar [Member] \| US [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration, royalty percentage	30.00%
Collaborative Arrangement with Bayer [Member] \| Nexavar [Member] \| NonUs,ExcludingJapan [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration, royalty percentage	30.00%
Collaborative Arrangement with Bayer [Member] \| Nexavar [Member] \| Other revenues [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration profit		210	164
Collaborative Arrangement with Bayer [Member] \| Royalty [Member] \| Other revenues [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenues	$ 217	$ 79	$ 91

Collaborations - BeiGene (Details) - USD ($)		12 Months Ended
Collaborations - BeiGene (Details) - USD ($)	Jan. 02, 2020	Dec. 31, 2020
BeiGene
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Ownership percentage	20.50%	20.50%
Equity Method Investment, Aggregate Cost	$ 2,800,000,000
BeiGene
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Research and Development Arrangement, Contract to Perform for Others, Costs Incurred, Gross	$ 1,250,000,000
BeiGene \| Other current assets [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Recovery Of Direct Costs, Receivable		$ 113,000,000
BeiGene \| Research and Development Expense [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cost recoveries		$ 225,000,000

Investments - Schedule (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Debt securities
Amortized cost	$ 9,844,000,000	$ 8,206,000,000
Gross unrealized gains	1,000,000	28,000,000
Gross unrealized losses	0	0
Fair values	9,845,000,000	8,234,000,000
U.S. Treasury notes [Member]
Debt securities
Amortized cost	129,000,000	359,000,000
Gross unrealized gains	1,000,000	1,000,000
Gross unrealized losses	0	0
Fair values	130,000,000	360,000,000
U.S. Treasury bills [Member]
Debt securities
Amortized cost	4,948,000,000	0
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Fair values	4,948,000,000	0
Corporate debt securities - Financial [Member]
Debt securities
Amortized cost	0	1,108,000,000
Gross unrealized gains	0	13,000,000
Gross unrealized losses	0	0
Fair values	0	1,121,000,000
Corporate debt securities - Industrial [Member]
Debt securities
Amortized cost	0	824,000,000
Gross unrealized gains	0	10,000,000
Gross unrealized losses	0	0
Fair values	0	834,000,000
Corporate debt securities - Other [Member]
Debt securities
Amortized cost	0	195,000,000
Gross unrealized gains	0	3,000,000
Gross unrealized losses	0	0
Fair values	0	198,000,000
Residential mortgage-backed securities [Member]
Debt securities
Amortized cost	0	181,000,000
Gross unrealized gains	0	1,000,000
Gross unrealized losses	0	0
Fair values	0	182,000,000
Money market mutual funds [Member]
Debt securities
Amortized cost	4,765,000,000	5,250,000,000
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Fair values	4,765,000,000	5,250,000,000
Other short-term interest-bearing securities [Member]
Debt securities
Amortized cost	2,000,000	289,000,000
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Fair values	$ 2,000,000	$ 289,000,000

Investments - Fair Values by Classification (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Consolidated Balance Sheets locations
Marketable securities	$ 4,381	$ 2,874
Total available-for-sale investments	9,845	8,234
Available-for-sale investments [Member]
Consolidated Balance Sheets locations
Cash and cash equivalents	5,464	5,360
Marketable securities	4,381	2,874
Total available-for-sale investments	$ 9,845	$ 8,234

Investments - Available-for-sale (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Cash	$ 802	$ 677
Total realized gains	37	92	$ 29
Total realized losses	$ 4	$ 36	$ 394

Investments - Fair Values by Contractual Maturity (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Maturing in one year or less	$ 9,795	$ 5,629
Maturing after one year through three years	50	2,304
Maturing after three years through five years	0	119
Residential-mortgage-backed securities	0	182
Total available-for-sale investments	$ 9,845	$ 8,234

Investments - Equity Securities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Equity securities	$ 477	$ 303
Equity Securities, FV-NI, Unrealized Gain (Loss)	174	112	$ (24)
Equity securities without readily determinable fair value	$ 203	$ 176

Investments - Limited Partnership Investments (Details) - Limited Partnership [Member] - Fair Value Measured at Net Asset Value Per Share [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Net Investment Income [Line Items]
Investments	$ 496	$ 320
Alternative Investment, Net Gain (Loss)	$ 241	$ 27	$ 91

Investments - BeiGene (Details) - BeiGene - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Jan. 02, 2020
Net Investment Income [Line Items]
Ownership percentage	20.50%	20.50%
Equity Method Investment, Aggregate Cost		$ 2,800
Equity Method Investment, Quoted Market Value	$ 4,900	2,600
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity		$ 2,400
Equity method investment, change in carrying value	569
Equity Method Investment, Change In Carrying Value, Other	34
Company's share of profits (losses) of related party	(229)
Equity Method Investment, Amortization of Difference Between Carrying Amount and Underlying Equity	109
Approximate carrying value of the company's equity method investment	$ 2,900
Minimum [Member]
Net Investment Income [Line Items]
Finite-Lived Intangible Asset, Useful Life	8 years
Maximum [Member]
Net Investment Income [Line Items]
Finite-Lived Intangible Asset, Useful Life	15 years

Inventories (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 486	$ 358
Work in process	2,437	2,227
Finished goods	970	999
Total inventories	$ 3,893	$ 3,584

Property, plant and equipment (Schedule) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Land	$ 259	$ 263
Buildings and improvements	3,857	3,757
Manufacturing equipment	2,865	2,655
Laboratory equipment	1,257	1,236
Fixed equipment	2,406	2,338
Capitalized software	1,216	1,154
Other	1,091	975
Construction in progress	915	907
Property, plant and equipment, gross	13,866	13,285
Less accumulated depreciation and amortization	(8,977)	(8,357)
Property, plant and equipment, net	4,889	4,928
Depreciation and amortization charges associated with property, plant and equipment	$ 640	$ 635	$ 630
Buildings and improvements [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life (in years)	10 years
Buildings and improvements [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life (in years)	40 years
Manufacturing equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life (in years)	8 years
Manufacturing equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life (in years)	12 years
Laboratory equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life (in years)	8 years
Laboratory equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life (in years)	12 years
Fixed equipment [Member]
Property, Plant and Equipment [Line Items]
Useful life (in years)	12 years
Capitalized software [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life (in years)	3 years
Capitalized software [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life (in years)	5 years
Other [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life (in years)	5 years
Other [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life (in years)	10 years

Property, plant and equipment (Geographic Information) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net	$ 4,889	$ 4,928
US [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net	2,473	2,433
Puerto Rico [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net	1,331	1,402
ROW [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net	$ 1,085	$ 1,093

Goodwill and other intangible assets - Goodwill Roll Forward (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Goodwill [Roll Forward]
Beginning balance	$ 14,703	$ 14,699
Addition from acquisitions	0	26
Currency translation adjustments	(14)	(22)
Ending balance	$ 14,689	$ 14,703

Goodwill and other intangible assets - Identifiable Intangible Assets (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Finite-lived intangible assets:
Gross carrying amounts	$ 32,018	$ 31,991
Accumulated amortization	(15,461)	(12,632)
Other intangible assets, net	16,557	19,359
Indefinite-lived intangible assets:
Identifiable intangible assets	32,048	32,045
Accumulated amortization	(15,461)	(12,632)
Identifiable intangible assets, net	16,587	19,413
IPR&D [Member]
Indefinite-lived intangible assets:
Indefinite-lived intangible assets	30	54
Developed Technology Rights
Finite-lived intangible assets:
Gross carrying amounts	25,591	25,575
Accumulated amortization	(10,564)	(8,322)
Other intangible assets, net	15,027	17,253
Licensing rights
Finite-lived intangible assets:
Gross carrying amounts	3,743	3,761
Accumulated amortization	(2,791)	(2,398)
Other intangible assets, net	952	1,363
Marketing-related rights [Member]
Finite-lived intangible assets:
Gross carrying amounts	1,367	1,382
Accumulated amortization	(1,041)	(965)
Other intangible assets, net	326	417
R&D technology rights [Member]
Finite-lived intangible assets:
Gross carrying amounts	1,317	1,273
Accumulated amortization	(1,065)	(947)
Other intangible assets, net	$ 252	$ 326

Goodwill and other intangible assets - Narrative (Details) - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization charges associated with finite-lived intangible assets	$ 2.8	$ 1.4	$ 1.3
Total estimated amortization of finite-lived intangible assets for 2021	2.6
Total estimated amortization of finite-lived intangible assets for 2022	2.5
Total estimated amortization of finite-lived intangible assets for 2023	2.4
Total estimated amortization of finite-lived intangible assets for 2024	2.4
Total estimated amortization of finite-lived intangible assets for 2025	$ 2.2

Leases - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Leases - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2020	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
Renewal term		7 years
Weighted-average remaining lease term (in years)		3 years 8 months 12 days	4 years 1 month 6 days
Weighted-average discount rate		3.10%	3.30%
Total undiscounted future lease payment		$ 339
Total lease payments		$ 488
Operating lease rent expense	$ 166
Minimum [Member]
Lessee, Lease, Description [Line Items]
Leases not yet commenced lease term		30 months
Maximum [Member]
Lessee, Lease, Description [Line Items]
Leases not yet commenced lease term		15 years

Leases - Summary of Leases (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Assets:
Other assets	$ 408	$ 469
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent	us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent
Liabilities:
Accrued liabilities	$ 153	$ 140
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent	us-gaap:OtherLiabilitiesNoncurrent
Other noncurrent liabilities	$ 306	$ 388
Total lease liabilities	$ 459	$ 528

Leases - Components of Lease Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating	$ 223	$ 204
Sublease income	(34)	(33)
Total net lease costs	$ 189	$ 171

Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
2021	$ 164
2022	132
2023	105
2024	36
2025	15
Thereafter	36
Total lease payments	488
Less imputed interest	(29)
Present value of lease liabilities	459	$ 528
Abandoned Leases [Member]
Lessee, Lease, Description [Line Items]
Future rental commitments for abandoned leases	133
Expected total future rental income to be received	$ 107

Leases - Cash and Noncash Information of Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities	$ 177	$ 148
ROU assets obtained in exchange for lease obligations	$ 101	$ 163

Other current assets and accrued liabilities - Schedule of Other Assets (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Prepaid expenses	$ 1,156	$ 939
Corporate partner receivables	583	485
Tax receivables	216	186
Other	124	278
Total other current assets	$ 2,079	$ 1,888

Other current assets and accrued liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Sales deductions	$ 4,801	$ 3,880
Employee compensation and benefits	1,098	981
Dividends payable	1,018	946
Income taxes payable	828	557
Sales returns reserve	474	564
Other	1,922	1,583
Total accrued liabilities	$ 10,141	$ 8,511

Financing arrangements (Principal Amounts and Carrying Value of Long-term Borrowings) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($)	Dec. 31, 2020 EUR (€)	Dec. 31, 2020 CHF (SFr)	Dec. 31, 2020 GBP (£)	May 31, 2020 USD ($)	Feb. 29, 2020 USD ($)	Dec. 31, 2019 USD ($)
Carrying values of long-term borrowings
Unamortized bond discounts, premiums and issuance costs, net	$ (1,188)						$ (868)
Fair value adjustments	566						296
Other Long-term Debt	5						0
Total carrying value of debt	32,986						29,903
Less current portion	(91)						(2,953)
Total long-term debt	$ 32,895						26,950
0.41% 2023 Swiss franc Bonds [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	0.41%	0.41%	0.41%	0.41%
Notes [Member]
Debt Instrument [Line Items]
Face amount					$ 4,000	$ 5,000
Notes [Member] \| 4.50% notes due 2020 (4.50% 2020 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	4.50%	4.50%	4.50%	4.50%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross							300
Notes [Member] \| 2.125% notes due 2020 (2.125% 2020 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	2.125%	2.125%	2.125%	2.125%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 0						750
Notes [Member] \| Floating Rate Notes Due 2020 [Member]
Debt Instrument [Line Items]
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 0						300
Notes [Member] \| 2.20% notes due 2020 (2.20% 2020 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	2.20%	2.20%	2.20%	2.20%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 0						700
Notes [Member] \| 3.45% notes due 2020 (3.45% 2020 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	3.45%	3.45%	3.45%	3.45%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross							900
Notes [Member] \| 4.10% notes due 2021 (4.10% 2021 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	4.10%	4.10%	4.10%	4.10%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross							1,000
Notes [Member] \| 1.85% notes due 2021 (1.85% 2021 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	1.85%	1.85%	1.85%	1.85%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 0						750
Notes [Member] \| 3.875% notes due 2021 (3.875% 2021 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	3.875%	3.875%	3.875%	3.875%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross							1,750
Notes [Member] \| 1.25% notes due 2022 (1.25% 2022 euro Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	1.25%	1.25%	1.25%	1.25%
Face amount \| €		€ 1,250,000,000
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 1,527						1,402
Notes [Member] \| 2.70% notes due 2022 (2.70% 2022 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	2.70%	2.70%	2.70%	2.70%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 500						500
Notes [Member] \| 2.65% notes due 2022 (2.65% 2022 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	2.65%	2.65%	2.65%	2.65%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 1,500						1,500
Notes [Member] \| 3.625% notes due 2022 (3.625% 2022 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	3.625%	3.625%	3.625%	3.625%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 750						750
Notes [Member] \| 0.41% 2023 Swiss franc Bonds [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	0.41%	0.41%	0.41%	0.41%
Face amount \| SFr			SFr 700,000,000
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 791						725
Notes [Member] \| 2.25% notes due 2023 (2.25% 2023 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	2.25%	2.25%	2.25%	2.25%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 750						750
Notes [Member] \| 3.625% notes due 2024 (3.625% 2024 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	3.625%	3.625%	3.625%	3.625%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 1,400						1,400
Notes [Member] \| 1.90% notes due 2025 (1.90% 2025 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	1.90%	1.90%	1.90%	1.90%		1.90%
Face amount						$ 500
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 500
Notes [Member] \| 3.125% notes due 2025 (3.125% 2025 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	3.125%	3.125%	3.125%	3.125%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 1,000						1,000
Notes [Member] \| 2.00% 2026 euro Notes [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	2.00%	2.00%	2.00%	2.00%
Face amount \| €		€ 750,000,000
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 916						841
Notes [Member] \| 2.60% notes due 2026 (2.60% 2026 notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	2.60%	2.60%	2.60%	2.60%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 1,250						1,250
Notes [Member] \| 5.50% pound-sterling-denominated notes due 2026 (5.50% 2026 pound sterling Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	5.50%	5.50%	5.50%	5.50%
Face amount \| £				£ 475,000,000
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 649						630
Notes [Member] \| 2.20% notes due 2027 (2.20% 2027 notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	2.20%	2.20%	2.20%	2.20%	2.20%	2.20%
Face amount					$ 1,000	$ 750
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 1,750
Notes [Member] \| 3.20% notes due 2027 (3.20% 2027 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	3.20%	3.20%	3.20%	3.20%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 1,000						1,000
Notes [Member] \| 4.00% pound-sterling-denominated notes due 2029 (4.00% 2029 pound sterling Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	4.00%	4.00%	4.00%	4.00%
Face amount \| £				£ 700,000,000
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 957						928
Notes [Member] \| 2.45% notes due 2031 (2.45% 2031 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	2.45%	2.45%	2.45%	2.45%		2.45%
Face amount						$ 1,250
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 1,250
Notes [Member] \| 2.30% notes due 2031 (2.30% 2031 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	2.30%	2.30%	2.30%	2.30%	2.30%
Face amount					$ 1,250
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 1,250
Notes [Member] \| 6.375% notes due 2037 (6.375% 2037 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	6.375%	6.375%	6.375%	6.375%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 478						552
Notes [Member] \| 6.90% notes due 2038 (6.90% 2038 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	6.90%	6.90%	6.90%	6.90%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 254						291
Notes [Member] \| 6.40% notes due 2039 (6.40% 2039 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	6.40%	6.40%	6.40%	6.40%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 333						466
Notes [Member] \| 3.15% notes due 2040 (3.15% 2040 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	3.15%	3.15%	3.15%	3.15%	3.15%	3.15%
Face amount					$ 750	$ 1,250
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 2,000
Notes [Member] \| 5.75% notes due 2040 (5.75% 2040 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	5.75%	5.75%	5.75%	5.75%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 373						412
Notes [Member] \| 4.95% notes due 2041 (4.95% 2041 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	4.95%	4.95%	4.95%	4.95%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 600						600
Notes [Member] \| 5.15% notes due 2041 (5.15% 2041 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	5.15%	5.15%	5.15%	5.15%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 729						974
Notes [Member] \| 5.65% notes due 2042 (5.65% 2042 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	5.65%	5.65%	5.65%	5.65%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 415						487
Notes [Member] \| 5.375% notes due 2043 (5.375% 2043 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	5.375%	5.375%	5.375%	5.375%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 185						261
Notes [Member] \| 4.40% notes due 2045 (4.40% 2045 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	4.40%	4.40%	4.40%	4.40%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 2,250						2,250
Notes [Member] \| 4.563% notes due 2048 (4.563% 2048 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	4.563%	4.563%	4.563%	4.563%
Effective interest rate on note	6.30%	6.30%	6.30%	6.30%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 1,415						1,415
Notes [Member] \| Three Point Three Seven Five Percent Notes Due 2050 [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	3.375%	3.375%	3.375%	3.375%	3.375%	3.375%
Face amount					$ 1,000	$ 1,250
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 2,250
Notes [Member] \| 4.663% notes due 2051 (4.663% 2051 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	4.663%	4.663%	4.663%	4.663%
Effective interest rate on note	5.60%	5.60%	5.60%	5.60%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 3,541						3,541
Notes [Member] \| 2.77% notes due 2053 (2.77% 2053 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	2.77%	2.77%	2.77%	2.77%
Face amount	$ 940
Effective interest rate on note	5.20%	5.20%	5.20%	5.20%
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event	101.00%
Carrying values of long-term borrowings
Long-term debt, gross	$ 940						0
Notes [Member] \| Other notes due 2097 [Member]
Carrying values of long-term borrowings
Long-term debt, gross	$ 100						$ 100
Debt securities payable [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Redemption period without payment of make whole amount	1 month
Debt securities payable [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Redemption period without payment of make whole amount	6 months

Financing arrangements (Debt Issuances) (Details) - USD ($)	Dec. 31, 2020	May 31, 2020	Feb. 29, 2020
Debt Instrument [Line Items]
Commercial paper, maximum borrowing capacity	$ 2,500,000,000
Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount of notes issued		$ 4,000,000,000.0	$ 5,000,000,000.0
Notes [Member] \| 1.90% notes due 2025 (1.90% 2025 Notes) [Member]
Debt Instrument [Line Items]
Aggregate principal amount of notes issued			$ 500,000,000
Interest rate, stated percentage	1.90%		1.90%
Notes [Member] \| 2.20% notes due 2027 (2.20% 2027 notes) [Member]
Debt Instrument [Line Items]
Aggregate principal amount of notes issued		$ 1,000,000,000.0	$ 750,000,000
Interest rate, stated percentage	2.20%	2.20%	2.20%
Notes [Member] \| 2.45% notes due 2031 (2.45% 2031 Notes) [Member]
Debt Instrument [Line Items]
Aggregate principal amount of notes issued			$ 1,250,000,000
Interest rate, stated percentage	2.45%		2.45%
Notes [Member] \| 3.15% notes due 2040 (3.15% 2040 Notes) [Member]
Debt Instrument [Line Items]
Aggregate principal amount of notes issued		$ 750,000,000	$ 1,250,000,000
Interest rate, stated percentage	3.15%	3.15%	3.15%
Notes [Member] \| Three Point Three Seven Five Percent Notes Due 2050 [Member]
Debt Instrument [Line Items]
Aggregate principal amount of notes issued		$ 1,000,000,000.0	$ 1,250,000,000
Interest rate, stated percentage	3.375%	3.375%	3.375%
Notes [Member] \| 2.30% notes due 2031 (2.30% 2031 Notes) [Member]
Debt Instrument [Line Items]
Aggregate principal amount of notes issued		$ 1,250,000,000
Interest rate, stated percentage	2.30%	2.30%

Financing arrangements (Debt Repayments) (Details) € in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2019 EUR (€)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 EUR (€)
Debt Instrument [Line Items]
Repayments of debt	$ 6,450	$ 4,514		$ 1,121
Make-whole payments recognized in interest expense	1,262	1,289		1,392
Notes [Member]
Debt Instrument [Line Items]
Repayments of debt	6,500	4,500		1,100
Make-whole payments recognized in interest expense	96
Notes [Member] \| 2.20% notes due 2019 (2.20% 2019 Notes) [Member]
Debt Instrument [Line Items]
Repayments of debt		$ 1,400
Interest rate, stated percentage		2.20%	2.20%
Notes [Member] \| 5.70% notes due 2019 (5.70% 2019 Notes) [Member]
Debt Instrument [Line Items]
Repayments of debt		$ 1,000
Interest rate, stated percentage		5.70%	5.70%
Notes [Member] \| 2.125% euro-denominated notes due 2019 (2.125% 2019 euro Notes) [Member]
Debt Instrument [Line Items]
Repayments of debt		$ 864	€ 675
Interest rate, stated percentage		2.125%	2.125%
Notes [Member] \| 1.90% notes due 2019 (1.90% 2019 Notes) [Member]
Debt Instrument [Line Items]
Repayments of debt		$ 700
Interest rate, stated percentage		1.90%	1.90%
Notes [Member] \| Floating Rate Notes Due 2019 [Member]
Debt Instrument [Line Items]
Repayments of debt		$ 550
Notes [Member] \| 6.15% notes due 2018 (6.15% 2018 Notes) [Member]
Debt Instrument [Line Items]
Repayments of debt				$ 500
Interest rate, stated percentage				6.15%	6.15%
Notes [Member] \| 4.375% euro-denominated notes due 2018 (4.375% 2018 euro Notes) [Member]
Debt Instrument [Line Items]
Repayments of debt				$ 621	€ 550
Interest rate, stated percentage				4.375%	4.375%
Notes [Member] \| 4.50% notes due 2020 (4.50% 2020 Notes) [Member]
Debt Instrument [Line Items]
Repayments of debt	$ 300
Interest rate, stated percentage	4.50%
Notes [Member] \| 2.125% notes due 2020 (2.125% 2020 Notes) [Member]
Debt Instrument [Line Items]
Repayments of debt	$ 750
Interest rate, stated percentage	2.125%
Notes [Member] \| 2.20% notes due 2020 (2.20% 2020 Notes) [Member]
Debt Instrument [Line Items]
Repayments of debt	$ 700
Interest rate, stated percentage	2.20%
Notes [Member] \| 3.45% notes due 2020 (3.45% 2020 Notes) [Member]
Debt Instrument [Line Items]
Repayments of debt	$ 900
Interest rate, stated percentage	3.45%
Notes [Member] \| 4.10% notes due 2021 (4.10% 2021 Notes) [Member]
Debt Instrument [Line Items]
Repayments of debt	$ 1,000
Interest rate, stated percentage	4.10%
Notes [Member] \| 1.85% notes due 2021 (1.85% 2021 Notes) [Member]
Debt Instrument [Line Items]
Repayments of debt	$ 750
Interest rate, stated percentage	1.85%
Notes [Member] \| 3.875% notes due 2021 (3.875% 2021 Notes) [Member]
Debt Instrument [Line Items]
Repayments of debt	$ 1,750
Interest rate, stated percentage	3.875%
Notes [Member] \| Floating Rate Notes Due 2020 [Member]
Debt Instrument [Line Items]
Repayments of debt	$ 300

Financing arrangements (Interest Rate and Cross-currency Swaps) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2020 EUR (€)	Dec. 31, 2020 CHF (SFr)	Dec. 31, 2020 GBP (£)	May 31, 2020 USD ($)	Feb. 29, 2020 USD ($)
Debt Instrument [Line Items]
Net Cash Provided by (Used in) Operating Activities	$ 10,497	$ 9,150	$ 11,296
Interest rate swap contracts [Member] \| Designated as Hedging Instrument [Member]
Debt Instrument [Line Items]
Notional amount	5,900	9,600
Derivative, Notional Amount, Amount Terminated	3,650
Net Cash Provided by (Used in) Operating Activities	576
Interest Rate Swap, Two [Member] \| Interest rate swap contracts [Member] \| Designated as Hedging Instrument [Member]
Debt Instrument [Line Items]
Derivative, Notional Amount, Amount Terminated	5,200
Interest Rate Swap, Three [Member] \| Interest rate swap contracts [Member] \| Designated as Hedging Instrument [Member]
Debt Instrument [Line Items]
Notional amount	$ 5,200
0.41% 2023 Swiss franc Bonds [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	0.41%			0.41%	0.41%	0.41%
4.663% notes due 2051 (4.663% 2051 Notes) [Member]
Debt Instrument [Line Items]
Rate difference in an interest rate swap relationship	1.50%
Notes payable [Member]
Debt Instrument [Line Items]
Notional amount	$ 5,900	9,550
Notes payable [Member] \| 3.45% notes due 2020 (3.45% 2020 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	3.45%			3.45%	3.45%	3.45%
Notional amount	$ 0	$ 900
Notes payable [Member] \| 3.45% notes due 2020 (3.45% 2020 Notes) [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Derivative, effective interest rate	1.10%	1.10%		1.10%	1.10%	1.10%
Notes payable [Member] \| 4.10% notes due 2021 (4.10% 2021 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	4.10%			4.10%	4.10%	4.10%
Notional amount	$ 0	$ 1,000
Notes payable [Member] \| 4.10% notes due 2021 (4.10% 2021 Notes) [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Derivative, effective interest rate	1.70%	1.70%		1.70%	1.70%	1.70%
Notes payable [Member] \| 3.875% notes due 2021 (3.875% 2021 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	3.875%			3.875%	3.875%	3.875%
Notional amount	$ 0	$ 1,750
Notes payable [Member] \| 3.875% notes due 2021 (3.875% 2021 Notes) [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Derivative, effective interest rate	2.00%	2.00%		2.00%	2.00%	2.00%
Notes payable [Member] \| 3.625% notes due 2022 (3.625% 2022 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	3.625%			3.625%	3.625%	3.625%
Notional amount	$ 750	$ 750
Notes payable [Member] \| 3.625% notes due 2022 (3.625% 2022 Notes) [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Derivative, effective interest rate	2.70%	1.60%		2.70%	2.70%	2.70%
Notes payable [Member] \| 3.625% notes due 2024 (3.625% 2024 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	3.625%			3.625%	3.625%	3.625%
Notional amount	$ 1,400	$ 1,400
Notes payable [Member] \| 3.625% notes due 2024 (3.625% 2024 Notes) [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Derivative, effective interest rate	3.20%	1.40%		3.20%	3.20%	3.20%
Notes payable [Member] \| 3.125% notes due 2025 (3.125% 2025 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	3.125%			3.125%	3.125%	3.125%
Notional amount	$ 1,000	$ 1,000
Notes payable [Member] \| 3.125% notes due 2025 (3.125% 2025 Notes) [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Derivative, effective interest rate	1.80%	0.90%		1.80%	1.80%	1.80%
Notes payable [Member] \| 2.600% notes due 2026 (2.60% 2026 notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	2.60%			2.60%	2.60%	2.60%
Notional amount	$ 1,250	$ 1,250
Notes payable [Member] \| 2.600% notes due 2026 (2.60% 2026 notes) [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Derivative, effective interest rate	1.80%	0.30%		1.80%	1.80%	1.80%
Notes payable [Member] \| 1.25% notes due 2022 (1.25% 2022 euro Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	1.25%			1.25%	1.25%	1.25%
Notes payable [Member] \| 0.41% 2023 Swiss franc Bonds [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	0.41%			0.41%	0.41%	0.41%
Notes payable [Member] \| 2.00% 2026 euro Notes [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	2.00%			2.00%	2.00%	2.00%
Notes payable [Member] \| 4.663% notes due 2051 (4.663% 2051 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	4.663%			4.663%	4.663%	4.663%
Notional amount	$ 1,500	$ 1,500
Notes payable [Member] \| 4.663% notes due 2051 (4.663% 2051 Notes) [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Derivative, effective interest rate	2.60%	0.00%		2.60%	2.60%	2.60%
Notes [Member]
Debt Instrument [Line Items]
Face amount							$ 4,000	$ 5,000
Notes [Member] \| 2.20% notes due 2019 (2.20% 2019 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage		2.20%
Notes [Member] \| 3.45% notes due 2020 (3.45% 2020 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	3.45%			3.45%	3.45%	3.45%
Notes [Member] \| 4.10% notes due 2021 (4.10% 2021 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	4.10%			4.10%	4.10%	4.10%
Notes [Member] \| 3.875% notes due 2021 (3.875% 2021 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	3.875%			3.875%	3.875%	3.875%
Notes [Member] \| 3.625% notes due 2022 (3.625% 2022 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	3.625%			3.625%	3.625%	3.625%
Notes [Member] \| 3.625% notes due 2024 (3.625% 2024 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	3.625%			3.625%	3.625%	3.625%
Notes [Member] \| 3.125% notes due 2025 (3.125% 2025 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	3.125%			3.125%	3.125%	3.125%
Notes [Member] \| 2.600% notes due 2026 (2.60% 2026 notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	2.60%			2.60%	2.60%	2.60%
Notes [Member] \| 1.25% notes due 2022 (1.25% 2022 euro Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	1.25%			1.25%	1.25%	1.25%
Face amount \| €				€ 1,250,000,000
Notes [Member] \| 0.41% 2023 Swiss franc Bonds [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	0.41%			0.41%	0.41%	0.41%
Face amount \| SFr					SFr 700,000,000
Notes [Member] \| 2.00% 2026 euro Notes [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	2.00%			2.00%	2.00%	2.00%
Face amount \| €				€ 750,000,000
Notes [Member] \| 5.50% 2026 pound sterling Notes [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	5.50%			5.50%	5.50%	5.50%
Face amount \| £						£ 475,000,000
Notes [Member] \| 4.00% 2029 pound sterling Notes [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	4.00%			4.00%	4.00%	4.00%
Face amount \| £						£ 700,000,000
Notes [Member] \| 4.663% notes due 2051 (4.663% 2051 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	4.663%			4.663%	4.663%	4.663%
Notes [Member] \| 6.375% notes due 2037 (6.375% 2037 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	6.375%			6.375%	6.375%	6.375%
Debt Conversion, Converted Instrument, Amount	$ 74
Notes [Member] \| 2.77% notes due 2053 (2.77% 2053 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	2.77%			2.77%	2.77%	2.77%
Face amount	$ 940
Debt exchange additional cash consideration	85
Debt Instrument, Unamortized Discount	$ 264
Notes [Member] \| 6.90% notes due 2038 (6.90% 2038 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	6.90%			6.90%	6.90%	6.90%
Debt Conversion, Converted Instrument, Amount	$ 37
Notes [Member] \| 6.40% notes due 2039 (6.40% 2039 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	6.40%			6.40%	6.40%	6.40%
Debt Conversion, Converted Instrument, Amount	$ 133
Notes [Member] \| 5.75% notes due 2040 (5.75% 2040 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	5.75%			5.75%	5.75%	5.75%
Debt Conversion, Converted Instrument, Amount	$ 39
Notes [Member] \| 5.15% notes due 2041 (5.15% 2041 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	5.15%			5.15%	5.15%	5.15%
Debt Conversion, Converted Instrument, Amount	$ 245
Notes [Member] \| 5.65% notes due 2042 (5.65% 2042 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	5.65%			5.65%	5.65%	5.65%
Debt Conversion, Converted Instrument, Amount	$ 72
Notes [Member] \| 5.375% notes due 2043 (5.375% 2043 Notes) [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	5.375%			5.375%	5.375%	5.375%
Debt Conversion, Converted Instrument, Amount	$ 76

Financing arrangements (Shelf Registration Statements and Other Facilities) (Details) - Line of credit [Member]	12 Months Ended
	Dec. 31, 2020 USD ($) renewal_option	Dec. 31, 2019 USD ($)
Debt Instrument [Line Items]
Maximum current borrowing capacity under a syndicated, unsecured, revolving credit agreement	$ 2,500,000,000
Amount by which borrowing capacity under a syndicated unsecured revolving credit agreement may be increased upon our request at discretion of banks	$ 750,000,000
Initial commitment term of each bank which is a party to the agreement	5 years
Number of additional term extension options \| renewal_option	2
Additional period for extension of commitment term	1 year
Annual commitment fees for syndicated, unsecured, revolving credit agreement	0.09%
Amount outstanding under syndicated, unsecured, revolving credit facility	$ 0	$ 0
Fed Funds Effective Rate Overnight Index Swap Rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Description of variable rate basis	one-month LIBOR

Financing arrangements (Contractual Maturities of Long-term Debt) (Details) $ in Millions	Dec. 31, 2020 USD ($)
Maturities of Long-term Debt [Abstract]
2021	$ 0
2022	4,277
2023	1,541
2024	1,400
2025	1,500
Thereafter	24,890
Total	$ 33,608

Financing arrangements (Interest Costs) (Details) - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
Interest paid, net of interest rate and cross currency swaps	$ 1.2	$ 1.3	$ 1.5

Stockholders' equity (Stock Repurchase Program) (Details) - USD ($) shares in Millions	3 Months Ended												12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Equity [Abstract]
Stock repurchases, Shares	5.3	3.0	2.6	4.3	5.1	6.2	13.1	15.9	11.1	8.7	18.2	56.4	15.2	40.2	94.5
Stock repurchases	$ 1,221,000,000	$ 752,000,000	$ 591,000,000	$ 933,000,000	$ 1,090,000,000	$ 1,170,000,000	$ 2,349,000,000	$ 3,031,000,000	$ 2,165,000,000	$ 1,713,000,000	$ 3,190,000,000	$ 10,787,000,000	$ 3,497,000,000	$ 7,640,000,000	$ 17,855,000,000
Stock repurchase program, additional authorized amount					$ 4,000,000,000.0									$ 4,000,000,000.0
Amount available for stock repurchases under a board approved stock repurchase plan	$ 3,000,000,000.0												$ 3,000,000,000.0

Stockholders' equity (Dividends) (Details) - $ / shares			3 Months Ended												12 Months Ended
Stockholders' equity (Dividends) (Details) - $ / shares	Mar. 08, 2021	Dec. 16, 2020	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Class of Stock [Line Items]
Common stock, dividends declared per share (in usd per share)		$ 1.76													$ 6.56	$ 5.95	$ 5.41
Common stock, dividends paid per share (in usd per share)			$ 1.60	$ 1.60	$ 1.60	$ 1.60	$ 1.45	$ 1.45	$ 1.45	$ 1.45	$ 1.32	$ 1.32	$ 1.32	$ 1.32
Forecast
Class of Stock [Line Items]
Common stock, dividends paid per share (in usd per share)	$ 1.76

Stockholders' equity (Components of AOCI) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	$ 9,673	$ 12,500	$ 25,241
Foreign currency translation adjustments	9	(48)	(141)
Ending Balance	9,409	9,673	12,500
Cumulative Effect, Period of Adoption, Adjustment [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(2)		29
Ending Balance		(2)
Foreign currency translation [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(718)	(670)	(529)
Foreign currency translation adjustments	9	(48)	(141)
Income taxes	0	0	0
Ending Balance	(709)	(718)	(670)
Cash flow hedges [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	175	241	(6)
Unrealized (losses) gains	(61)	127	61
Reclassification adjustments to income	501	211	262
Income taxes	124	18	(76)
Ending Balance	(263)	175	241
Available-for-sale securities [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	22	(338)	(144)
Unrealized (losses) gains	6	424	(556)
Reclassification adjustments to income	33	56	365
Income taxes	6	(8)	6
Ending Balance	1	22	(338)
Available-for-sale securities [Member] \| Cumulative Effect, Period of Adoption, Adjustment [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			(9)
Other [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(7)	(2)	0
Other losses	(7)	(5)	(2)
Ending Balance	(14)	(7)	(2)
AOCI [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(528)	(769)	(679)
Foreign currency translation adjustments	9	(48)	(141)
Unrealized (losses) gains	(55)	551	(495)
Reclassification adjustments to income	(534)	(267)	627
Other losses	(7)	(5)	(2)
Income taxes	130	10	(70)
Ending Balance	$ (985)	$ (528)	(769)
AOCI [Member] \| Cumulative Effect, Period of Adoption, Adjustment [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			$ (9)

Stockholders' equity (Accumulated Other Comprehensive Income (Loss), Textual) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Equity [Abstract]
Income tax expense or (benefit) for reclassification adjustments to income for available-for-sale securities	$ 7	$ 14	$ (3)
Income taxes expense or (benefit) for unrealized gains and losses for available-for-sale securities	(1)	(22)	9
Income taxes expense or (benefit) for unrealized gains and losses for cash flow hedges	14	(28)	(21)
Income tax expense or (benefit) reclassification adjustments to income for cash flow hedges	$ 110	$ 46	$ (55)

Stockholders' equity (Reclassifications out of AOCI) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Revenues									$ 25,424	$ 23,362	$ 23,747
Interest and other income, net									256	753	674
Interest expense, net									(1,262)	(1,289)	(1,392)
Income before income taxes									8,133	9,138	9,545
Provision for income taxes									(869)	(1,296)	(1,151)
Net income	$ 1,615	$ 2,021	$ 1,803	$ 1,825	$ 1,703	$ 1,968	$ 2,179	$ 1,992	7,264	7,842	8,394
Product sales [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Revenues	$ 6,334	$ 6,104	$ 5,908	$ 5,894	$ 5,881	$ 5,463	$ 5,574	$ 5,286	24,240	22,204	22,533
Reclassification out of AOCI [Member] \| Cash flow hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income before income taxes									501	211	(262)
Provision for income taxes									(110)	(46)	55
Net income									391	165	(207)
Reclassification out of AOCI [Member] \| Available-for-sale securities [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest and other income, net									33	56	(365)
Provision for income taxes									(7)	(14)	3
Net income									26	42	(362)
Reclassification out of AOCI [Member] \| Foreign currency contract [Member] \| Product sales [Member] \| Cash flow hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Revenues									178	101	(21)
Reclassification out of AOCI [Member] \| Foreign currency contract [Member] \| Cash flow hedge [Member] \| Product sales [Member] \| Cash flow hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Revenues									178	101	(21)
Reclassification out of AOCI [Member] \| Cross-currency swap contract [Member] \| Cash flow hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest and other income, net									323	110	(241)
Reclassification out of AOCI [Member] \| Cross-currency swap contract [Member] \| Cash flow hedge [Member] \| Cash flow hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest and other income, net									$ 323	$ 110	$ (241)

Stockholders' equity (Other) (Details) - $ / shares	Dec. 31, 2020	Dec. 31, 2019
Equity [Abstract]
Preferred stock shares authorized (in shares)	5,000,000
Preferred stock, par value (in usd per share)	$ 0.0001
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

Fair value measurement - (Fair Value of Financial Assets and Liabilities on Recurring Basis) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Assets:
Interest-bearing securities	$ 9,845	$ 8,234
Equity securities	477	303
Derivatives:
Total assets	10,671	9,086
Derivatives:
Contingent consideration obligations	33	61
Total liabilities	603	407
Foreign currency contracts [Member]
Derivatives:
Foreign currency and cross-currency swap contracts	28	224
Derivatives:
Foreign currency and cross-currency swap contracts	237	31
Cross-currency swap contracts [Member]
Derivatives:
Foreign currency and cross-currency swap contracts	255	66
Derivatives:
Foreign currency and cross-currency swap contracts	318	315
Interest rate swap contracts [Member]
Derivatives:
Interest rate swap contracts	66	259
Derivatives:
Interest rate swap contracts	15	0
U.S. Treasury notes [Member]
Assets:
Interest-bearing securities	130	360
U.S. Treasury bills [Member]
Assets:
Interest-bearing securities	4,948	0
Corporate debt securities - Financial [Member]
Assets:
Interest-bearing securities	0	1,121
Corporate debt securities - Industrial [Member]
Assets:
Interest-bearing securities	0	834
Corporate debt securities - Other [Member]
Assets:
Interest-bearing securities	0	198
Residential mortgage-backed securities [Member]
Assets:
Interest-bearing securities	0	182
Money market mutual funds [Member]
Assets:
Interest-bearing securities	4,765	5,250
Other short-term interest-bearing securities [Member]
Assets:
Interest-bearing securities	2	289
Quoted prices in active markets for identical assets (Level 1) [Member]
Assets:
Equity securities	477	303
Derivatives:
Total assets	10,320	5,913
Derivatives:
Contingent consideration obligations	0	0
Total liabilities	0	0
Quoted prices in active markets for identical assets (Level 1) [Member] \| Foreign currency contracts [Member]
Derivatives:
Foreign currency and cross-currency swap contracts	0	0
Derivatives:
Foreign currency and cross-currency swap contracts	0	0
Quoted prices in active markets for identical assets (Level 1) [Member] \| Cross-currency swap contracts [Member]
Derivatives:
Foreign currency and cross-currency swap contracts	0	0
Derivatives:
Foreign currency and cross-currency swap contracts	0	0
Quoted prices in active markets for identical assets (Level 1) [Member] \| Interest rate swap contracts [Member]
Derivatives:
Interest rate swap contracts	0	0
Derivatives:
Interest rate swap contracts	0	0
Quoted prices in active markets for identical assets (Level 1) [Member] \| U.S. Treasury notes [Member]
Assets:
Interest-bearing securities	130	360
Quoted prices in active markets for identical assets (Level 1) [Member] \| U.S. Treasury bills [Member]
Assets:
Interest-bearing securities	4,948	0
Quoted prices in active markets for identical assets (Level 1) [Member] \| Corporate debt securities - Financial [Member]
Assets:
Interest-bearing securities	0	0
Quoted prices in active markets for identical assets (Level 1) [Member] \| Corporate debt securities - Industrial [Member]
Assets:
Interest-bearing securities	0	0
Quoted prices in active markets for identical assets (Level 1) [Member] \| Corporate debt securities - Other [Member]
Assets:
Interest-bearing securities	0	0
Quoted prices in active markets for identical assets (Level 1) [Member] \| Residential mortgage-backed securities [Member]
Assets:
Interest-bearing securities	0	0
Quoted prices in active markets for identical assets (Level 1) [Member] \| Money market mutual funds [Member]
Assets:
Interest-bearing securities	4,765	5,250
Quoted prices in active markets for identical assets (Level 1) [Member] \| Other short-term interest-bearing securities [Member]
Assets:
Interest-bearing securities	0	0
Significant other observable inputs (Level 2) [Member]
Assets:
Equity securities	0	0
Derivatives:
Total assets	351	3,173
Derivatives:
Contingent consideration obligations	0	0
Total liabilities	570	346
Significant other observable inputs (Level 2) [Member] \| Foreign currency contracts [Member]
Derivatives:
Foreign currency and cross-currency swap contracts	28	224
Derivatives:
Foreign currency and cross-currency swap contracts	237	31
Significant other observable inputs (Level 2) [Member] \| Cross-currency swap contracts [Member]
Derivatives:
Foreign currency and cross-currency swap contracts	255	66
Derivatives:
Foreign currency and cross-currency swap contracts	318	315
Significant other observable inputs (Level 2) [Member] \| Interest rate swap contracts [Member]
Derivatives:
Interest rate swap contracts	66	259
Derivatives:
Interest rate swap contracts	15	0
Significant other observable inputs (Level 2) [Member] \| U.S. Treasury notes [Member]
Assets:
Interest-bearing securities	0	0
Significant other observable inputs (Level 2) [Member] \| U.S. Treasury bills [Member]
Assets:
Interest-bearing securities	0	0
Significant other observable inputs (Level 2) [Member] \| Corporate debt securities - Financial [Member]
Assets:
Interest-bearing securities	0	1,121
Significant other observable inputs (Level 2) [Member] \| Corporate debt securities - Industrial [Member]
Assets:
Interest-bearing securities	0	834
Significant other observable inputs (Level 2) [Member] \| Corporate debt securities - Other [Member]
Assets:
Interest-bearing securities	0	198
Significant other observable inputs (Level 2) [Member] \| Residential mortgage-backed securities [Member]
Assets:
Interest-bearing securities	0	182
Significant other observable inputs (Level 2) [Member] \| Money market mutual funds [Member]
Assets:
Interest-bearing securities	0	0
Significant other observable inputs (Level 2) [Member] \| Other short-term interest-bearing securities [Member]
Assets:
Interest-bearing securities	2	289
Significant unobservable inputs (Level 3) [Member]
Assets:
Equity securities	0	0
Derivatives:
Total assets		0
Derivatives:
Contingent consideration obligations	33	61
Total liabilities	33	61
Significant unobservable inputs (Level 3) [Member] \| Foreign currency contracts [Member]
Derivatives:
Foreign currency and cross-currency swap contracts	0	0
Derivatives:
Foreign currency and cross-currency swap contracts	0	0
Significant unobservable inputs (Level 3) [Member] \| Cross-currency swap contracts [Member]
Derivatives:
Foreign currency and cross-currency swap contracts	0	0
Derivatives:
Foreign currency and cross-currency swap contracts	0	0
Significant unobservable inputs (Level 3) [Member] \| Interest rate swap contracts [Member]
Derivatives:
Interest rate swap contracts	0	0
Derivatives:
Interest rate swap contracts	0	0
Significant unobservable inputs (Level 3) [Member] \| U.S. Treasury notes [Member]
Assets:
Interest-bearing securities	0	0
Significant unobservable inputs (Level 3) [Member] \| U.S. Treasury bills [Member]
Assets:
Interest-bearing securities	0	0
Significant unobservable inputs (Level 3) [Member] \| Corporate debt securities - Financial [Member]
Assets:
Interest-bearing securities	0	0
Significant unobservable inputs (Level 3) [Member] \| Corporate debt securities - Industrial [Member]
Assets:
Interest-bearing securities	0	0
Significant unobservable inputs (Level 3) [Member] \| Corporate debt securities - Other [Member]
Assets:
Interest-bearing securities	0	0
Significant unobservable inputs (Level 3) [Member] \| Residential mortgage-backed securities [Member]
Assets:
Interest-bearing securities	0	0
Significant unobservable inputs (Level 3) [Member] \| Money market mutual funds [Member]
Assets:
Interest-bearing securities	0	0
Significant unobservable inputs (Level 3) [Member] \| Other short-term interest-bearing securities [Member]
Assets:
Interest-bearing securities	$ 0	$ 0

Fair value measurement - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2018	Jan. 02, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Length of time hedged in foreign currency contracts	3 years
Aggregate fair value of long-term debt, including current portion	$ 39,400			$ 33,700
Carrying value of long-term debt, including current portion	32,986			$ 29,903
Other operating income (expense) [Member] \| IPR&D [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
IPR&D impairment charge		$ 330
BeiGene
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity Method Investment, Quoted Market Value	4,900		$ 2,600
Approximate carrying value of the company's equity method investment	$ 2,900

Derivative instruments - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Derivative Instruments Gain Loss [Line Items]
Net Cash Provided by (Used in) Operating Activities	$ 10,497	$ 9,150	$ 11,296
Long-term debt
Derivative Instruments Gain Loss [Line Items]
Carrying amounts of hedged liabilities	6,258	8,814
Foreign currency and cross currency swap contracts [Member]
Derivative Instruments Gain Loss [Line Items]
Amounts expected to be reclassified from AOCI into earnings over the next 12 months, foreign currency and cross-currency swaps	(136)
Interest rate swap [Member] \| Interest Expense [Member]
Derivative Instruments Gain Loss [Line Items]
Derivative, Gain on Derivative	40
Interest Rate Swap, At-Then Current Interest Rates [Member] \| Long-term debt
Derivative Instruments Gain Loss [Line Items]
Carrying amounts of hedged liabilities	5,200
Derivatives designated as hedging instruments [Member] \| Foreign currency forward contracts [Member]
Derivative Instruments Gain Loss [Line Items]
Notional amount	5,100	5,000	4,500
Derivatives designated as hedging instruments [Member] \| Foreign currency option contracts [Member]
Derivative Instruments Gain Loss [Line Items]
Notional amount			21
Derivatives designated as hedging instruments [Member] \| Interest rate swap [Member]
Derivative Instruments Gain Loss [Line Items]
Notional amount	5,900	9,600
Derivative, Notional Amount, Amount Terminated	3,650
Net Cash Provided by (Used in) Operating Activities	576
Derivative, Notional Amount, Amount Terminated Resulting In Net Cash Provided By Operating Activities	5,200
Derivatives designated as hedging instruments [Member] \| Interest rate swap [Member] \| Interest Rate Swap, Two [Member]
Derivative Instruments Gain Loss [Line Items]
Derivative, Notional Amount, Amount Terminated	5,200
Derivatives not designated as hedging instruments [Member] \| Foreign currency forward contracts [Member]
Derivative Instruments Gain Loss [Line Items]
Notional amount	$ 1,000	$ 1,200	$ 737
Notes [Member] \| Two Point One Two Five Percent Euro Notes Due 2019 [Member]
Derivative Instruments Gain Loss [Line Items]
Interest rate, stated percentage		2.125%

Derivative instruments - (Cross-currency Swaps) (Details) - Cash flow hedge [Member] - Cross-currency swap contracts [Member] € in Millions, £ in Millions, SFr in Millions, $ in Millions	Dec. 31, 2020 USD ($)	Dec. 31, 2020 EUR (€)	Dec. 31, 2020 CHF (SFr)	Dec. 31, 2020 GBP (£)
1.25% 2022 euro Notes [Member]
Derivative [Line Items]
Notional amount	$ 1,388	€ 1,250
0.41% 2023 Swiss franc Bonds [Member]
Derivative [Line Items]
Notional amount	704		SFr 700
2.00% 2026 euro Notes [Member]
Derivative [Line Items]
Notional amount	833	€ 750
5.50% 2026 pound sterling Notes [Member]
Derivative [Line Items]
Notional amount	747			£ 475
4.00% 2029 pound sterling Notes [Member]
Derivative [Line Items]
Notional amount	$ 1,111			£ 700
Euro Member Countries, Euro [Member] \| 1.25% 2022 euro Notes [Member]
Derivative [Line Items]
Interest rates	1.30%	1.30%	1.30%	1.30%
Euro Member Countries, Euro [Member] \| 2.00% 2026 euro Notes [Member]
Derivative [Line Items]
Interest rates	2.00%	2.00%	2.00%	2.00%
Switzerland, Francs [Member] \| 0.41% 2023 Swiss franc Bonds [Member]
Derivative [Line Items]
Interest rates	0.40%	0.40%	0.40%	0.40%
United Kingdom, Pounds [Member] \| 5.50% 2026 pound sterling Notes [Member]
Derivative [Line Items]
Interest rates	5.50%	5.50%	5.50%	5.50%
United Kingdom, Pounds [Member] \| 4.00% 2029 pound sterling Notes [Member]
Derivative [Line Items]
Interest rates	4.00%	4.00%	4.00%	4.00%
United States of America, Dollars [Member] \| 1.25% 2022 euro Notes [Member]
Derivative [Line Items]
Interest rates	3.20%	3.20%	3.20%	3.20%
United States of America, Dollars [Member] \| 0.41% 2023 Swiss franc Bonds [Member]
Derivative [Line Items]
Interest rates	3.40%	3.40%	3.40%	3.40%
United States of America, Dollars [Member] \| 2.00% 2026 euro Notes [Member]
Derivative [Line Items]
Interest rates	3.90%	3.90%	3.90%	3.90%
United States of America, Dollars [Member] \| 5.50% 2026 pound sterling Notes [Member]
Derivative [Line Items]
Interest rates	6.00%	6.00%	6.00%	6.00%
United States of America, Dollars [Member] \| 4.00% 2029 pound sterling Notes [Member]
Derivative [Line Items]
Interest rates	4.50%	4.50%	4.50%	4.50%

Derivative instruments - (Effective Portion of Unrealized Gain (Loss)) (Details) - Cash flow hedge [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Derivative Instruments Gain Loss [Line Items]
Total unrealized (losses) gains	$ (61)	$ 127	$ 61
Foreign currency contracts [Member]
Derivative Instruments Gain Loss [Line Items]
Total unrealized (losses) gains	(251)	148	348
Cross-currency swap contracts [Member]
Derivative Instruments Gain Loss [Line Items]
Total unrealized (losses) gains	190	(21)	(287)
Forward interest rate contracts [Member]
Derivative Instruments Gain Loss [Line Items]
Total unrealized (losses) gains	$ 0	$ 0	$ 0

Derivative instruments - (Hedged Liabilities and Cumulative Amount) (Details) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities	$ 566	$ 296
Current portion of long-term debt
Derivative [Line Items]
Carrying amounts of hedged liabilities	89	903
Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities	89	4
Carrying value with discontinued hedging relationships	89
Hedging adjustments on discontinued hedging relationships	89
Long-term debt
Derivative [Line Items]
Carrying amounts of hedged liabilities	6,258	8,814
Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities	477	292
Carrying value with discontinued hedging relationships	525	136
Hedging adjustments on discontinued hedging relationships	$ 425	$ 36

Derivative instruments - (Summary of Income and Expense Line Items) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Derivative [Line Items]
Product sales									$ 25,424	$ 23,362	$ 23,747
Interest and other income, net									256	753	674
Interest expense, net									(1,262)	(1,289)	(1,392)
Interest rate swap agreements [Member]
Derivative [Line Items]
Gains (losses) on fair value hedging relationships, Hedged Items									315	(349)	65
Gains (losses) on fair value hedging relationships, Derivatives designated as hedging instruments									(204)	352	(42)
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Cash flow hedges [Member] \| Cross-currency swap contracts [Member]
Derivative [Line Items]
Interest and other income, net									323	110	(241)
Product sales [Member]
Derivative [Line Items]
Product sales	$ 6,334	$ 6,104	$ 5,908	$ 5,894	$ 5,881	$ 5,463	$ 5,574	$ 5,286	24,240	22,204	22,533
Product sales [Member] \| Reclassification out of Accumulated Other Comprehensive Income [Member] \| Cash flow hedges [Member] \| Foreign currency contracts [Member]
Derivative [Line Items]
Product sales									$ 178	$ 101	$ (21)

Derivative instruments - (Fair Value of Derivatives) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Assets
Total derivative assets, fair value	$ 349	$ 549
Liabilities
Total derivative liabilities, fair value	570	346
Derivatives designated as hedging instruments [Member]
Assets
Total derivative assets, fair value	349	548
Liabilities
Total derivative liabilities, fair value	570	346
Derivatives designated as hedging instruments [Member] \| Foreign currency contracts [Member] \| Other current assets/Other assets [Member]
Assets
Total derivative assets, fair value	28	223
Derivatives designated as hedging instruments [Member] \| Foreign currency contracts [Member] \| Accrued liabilities/Other noncurrent liabilities [Member]
Liabilities
Total derivative liabilities, fair value	237	31
Derivatives designated as hedging instruments [Member] \| Cross-currency swap contracts [Member] \| Other current assets/Other assets [Member]
Assets
Total derivative assets, fair value	255	66
Derivatives designated as hedging instruments [Member] \| Cross-currency swap contracts [Member] \| Accrued liabilities/Other noncurrent liabilities [Member]
Liabilities
Total derivative liabilities, fair value	318	315
Derivatives designated as hedging instruments [Member] \| Interest rate swap contracts [Member] \| Other current assets/Other assets [Member]
Assets
Total derivative assets, fair value	66	259
Derivatives designated as hedging instruments [Member] \| Interest rate swap contracts [Member] \| Accrued liabilities/Other noncurrent liabilities [Member]
Liabilities
Total derivative liabilities, fair value	15	0
Derivatives not designated as hedging instruments [Member]
Assets
Total derivative assets, fair value	0	1
Liabilities
Total derivative liabilities, fair value	0	0
Derivatives not designated as hedging instruments [Member] \| Foreign currency contracts [Member] \| Other current assets [Member]
Assets
Total derivative assets, fair value	0	1
Derivatives not designated as hedging instruments [Member] \| Foreign currency contracts [Member] \| Accrued liabilities [Member]
Liabilities
Total derivative liabilities, fair value	$ 0	$ 0

Contingencies and commitments (KYPROLIS ANDA Patent Litigation) (Details) - patent		19 Months Ended
	May 08, 2020	Apr. 30, 2018
Gain Contingencies [Line Items]
Number of asserted patents	3
Onyx Therapeutics, Inc [Member] \| KYPROLIS (carfilzomib) Patent Litigation [Member]
Gain Contingencies [Line Items]
Number of patents allegedly infringed		1

Contingencies and commitments (Sandoz Patent Litigation) (Details)	1 Months Ended
	Jun. 30, 2018 lawsuit
Sandoz Inc.
Gain Contingencies [Line Items]
Number of lawsuits filed	19

Contingencies and commitments (Amneal Pharmaceuticals LLC Litigation) (Details) - Amneal Pharmaceuticals LLC	1 Months Ended
	Sep. 30, 2016 lawsuit
Gain Contingencies [Line Items]
Number of lawsuits filed	14
Number of lawsuits consolidated	14

Contingencies and commitments (Immunex and Sandoz Litigation) (Details)	1 Months Ended
	Apr. 30, 2019 affiliate	Feb. 28, 2016 patent affiliate
Immunex/Sandoz
Other Commitments [Line Items]
Gain contingency, number of affiliates		2
Number of patents allegedly infringed \| patent		5
Immunex/Samsung Bioepis Co.
Other Commitments [Line Items]
Gain contingency, number of affiliates	2

Contingencies and commitments (Repatha Patent Litigation) (Details) - Sanofi/Regeneron Patent Litigation - patent	1 Months Ended
	Mar. 31, 2018	Feb. 28, 2016	Oct. 31, 2014
Other Commitments [Line Items]
Number of patents allegedly infringed			7
Length of trial		5 days
Number of challenges	2

Contingencies and commitments (Additional Information) (Details)	1 Months Ended	3 Months Ended
	Apr. 30, 2019 agreement	May 31, 2019 complaints	Apr. 30, 2019 lawsuit claim plaintiffs	May 31, 2020 claim	Jun. 04, 2019 claim	May 20, 2019 claim
Loss Contingencies [Line Items]
Number of claims						1
Novartis Breach Of Contract Action
Loss Contingencies [Line Items]
Agreements breached \| agreement	2
Sensipar Antitrust Class Actions
Loss Contingencies [Line Items]
Loss contingency, number of plaintiffs \| plaintiffs			4
Loss contingency, number of lawsuits			2
Loss contingency, number of lawsuits filed \| lawsuit			4
Humira Biosimilar Antitrust Class Actions
Loss Contingencies [Line Items]
Number of claims				12	12
Number of complaints stayed \| complaints		6

Contingencies and commitments (U.S. Repatriation Tax Commitments) (Details) $ in Millions	Dec. 31, 2020 USD ($) installment
Commitments and Contingencies Disclosure [Abstract]
U.S. repatriation tax commitments, number of annual installments \| installment	8
U.S. repatriation tax commitments, 2021	$ 587
U.S. repatriation tax commitments, 2022	587
U.S. repatriation tax commitments, 2023	1,100
U.S. repatriation tax commitments, 2024	1,467
U.S. repatriation tax commitments, 2025	1,834
Total remaining U.S. repatriation tax commitments	$ 5,575

Quarterly financial data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Effect of Fourth Quarter Events [Line Items]
Product sales									$ 25,424	$ 23,362	$ 23,747
Gross profit from product sales	$ 4,737	$ 4,543	$ 4,420	$ 4,381	$ 4,628	$ 4,427	$ 4,562	$ 4,231
Net income	$ 1,615	$ 2,021	$ 1,803	$ 1,825	$ 1,703	$ 1,968	$ 2,179	$ 1,992	$ 7,264	$ 7,842	$ 8,394
Earnings per share:
Basic (in usd per share)	$ 2.78	$ 3.45	$ 3.07	$ 3.09	$ 2.87	$ 3.29	$ 3.59	$ 3.20	$ 12.40	$ 12.96	$ 12.70
Diluted (in usd per share)	$ 2.76	$ 3.43	$ 3.05	$ 3.07	$ 2.85	$ 3.27	$ 3.57	$ 3.18	$ 12.31	$ 12.88	$ 12.62
Product [Member]
Effect of Fourth Quarter Events [Line Items]
Product sales	$ 6,334	$ 6,104	$ 5,908	$ 5,894	$ 5,881	$ 5,463	$ 5,574	$ 5,286	$ 24,240	$ 22,204	$ 22,533

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
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Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.1,2)
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Allowance for doubtful accounts [Roll Forward]
Balance at beginning of period	$ 26	$ 48	$ 51
Additions charged to costs and expenses	8	0	1
Other additions	0	0	0
Deductions	2	22	4
Balance at end of period	$ 32	$ 26	$ 48