v3.25.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 29, 2025
Fair Value Disclosures [Abstract]  
Summary of Derivative Activity
The following table is a summary of the activity related to derivatives and hedges for the fiscal second quarters ended June 29, 2025 and June 30, 2024, net of tax:


June 29, 2025June 30, 2024
(Dollars in Millions)Sales
Cost of
Products
Sold
R&D
Expense
Interest
(Income)
Expense
Other
(Income)
Expense
Sales
Cost of
Products
Sold
R&D
Expense
Interest
(Income)
Expense
Other
(Income)
Expense
The effects of fair value, net investment and cash flow hedging:
Gain (Loss) on fair value hedging relationship:
Interest rate swaps contracts:
    Hedged items$———52————(53)—
    Derivatives designated as hedging instruments———(52)————53—
Gain (Loss) on net investment hedging relationship:
Cross currency interest rate swaps contracts:
   Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing———48————33—
   Amount of gain or (loss) recognized in AOCI———48————33—
Gain (Loss) on cash flow hedging relationship:
Forward foreign exchange contracts:
   Amount of gain or (loss) reclassified from AOCI into income 2(132)(16)—(3)(1)948—3
   Amount of gain or (loss) recognized in AOCI 11466(72)—(29)26611—1
Cross currency interest rate swaps contracts:
   Amount of gain or (loss) reclassified from AOCI into income———76————42—
   Amount of gain or (loss) recognized in AOCI$———108————(38)—
The following table is a summary of the activity related to derivatives and hedges for the fiscal six months ended June 29, 2025 and June 30, 2024, net of tax:


June 29, 2025June 30, 2024
(Dollars in Millions)SalesCost of Products SoldR&D ExpenseInterest (Income) ExpenseOther (Income) ExpenseSalesCost of Products SoldR&D ExpenseInterest (Income) ExpenseOther (Income) Expense
The effects of fair value, net investment and cash flow hedging:
Gain (Loss) on fair value hedging relationship:
Interest rate swaps contracts:
 Hedged items$———240————(45)—
 Derivatives designated as hedging instruments———(240)————45—
Gain (Loss) on net investment hedging relationship:
Cross currency interest rate swaps contracts:
   Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing———98————67—
   Amount of gain or (loss) recognized in AOCI———98————67—
Gain (Loss) on cash flow hedging relationship:
Forward foreign exchange contracts:
   Amount of gain or (loss) reclassified from AOCI into income 1(122)(15)—(3)—25912—1
   Amount of gain or (loss) recognized in AOCI 14571(108)—(40)(1)4733—5
Cross currency interest rate swaps contracts:
   Amount of gain or (loss) reclassified from AOCI into income———158————91—
   Amount of gain or (loss) recognized in AOCI$———673————(243)—
The following table is the effect of net investment hedges for the fiscal second quarters ended in 2025 and 2024:
Gain/(Loss)
Recognized In
Accumulated OCI
Location of Gain or (Loss)
Reclassified from Accumulated OCI Into Income		Gain/(Loss) Reclassified From
Accumulated OCI
Into Income
(Dollars in Millions)June 29, 2025June 30, 2024June 29, 2025June 30, 2024
Debt$(803)46Interest (income) expense——
Cross Currency interest rate swaps$(700)92Interest (income) expense——

The following table is the effect of net investment hedges for the fiscal six months ended in 2025 and 2024

Gain/(Loss)
Recognized In
Accumulated OCI		Location of Gain or (Loss)
Reclassified from Accumulated
OCI Into Income		Gain/(Loss) Reclassified From
Accumulated OCI
Into Income
(Dollars in Millions)June 29, 2025June 30, 2024June 29, 2025June 30, 2024
Debt$(1,119)130Interest (income) expense——
Cross Currency interest rate swaps$140820Interest (income) expense——
Schedule of Derivative Financial Instruments and Classification on Consolidated Balance Sheet
As of June 29, 2025, and December 29, 2024, the following amounts were recorded on the Consolidated Balance Sheet related to cumulative basis adjustment for fair value hedges:
Line item in the Consolidated Balance Sheet in which the hedged item is includedCarrying Amount of the Hedged Liability
Cumulative Amount of Fair Value
Hedging Gain/ (Loss) Included in the
Carrying Amount of the Hedged Liability
(Dollars in Millions)June 29, 2025December 29, 2024June 29, 2025December 29, 2024
Long-term Debt$8,2097,935(820)(1,132)
Schedule of Effect of Derivatives not Designated as Hedging Instruments
The following table is the effect of derivatives not designated as hedging instruments for the fiscal second quarters ended and fiscal six months ended 2025 and 2024:
Gain/(Loss)
Recognized In
Income on Derivative		Gain/(Loss)
Recognized In
Income on Derivative
(Dollars in Millions)Location of
Gain /(Loss)
Recognized in
Income on Derivative		Fiscal Second Quarter EndedFiscal Six Months Ended
Derivatives Not Designated as Hedging InstrumentsJune 29, 2025June 30, 2024June 29, 2025June 30, 2024
Foreign Exchange ContractsOther (income) expense$(19)204345
Summary of Activity Related to Equity Investments
The following table is a summary of the activity related to equity investments:
December 29, 2024June 29, 2025
(Dollars in Millions)Carrying Value
Changes in Fair Value Reflected in Net Income (1)
(Sales)/ Purchases/Other (2)
Carrying ValueNon Current Other Assets
Equity Investments with readily determinable value$451(57)59453453
Equity Investments without readily determinable value$773(26)76823823
(1)Recorded in Other (income)/expense, net
(2)Other includes impact of currency
Financial Assets and Liabilities at Fair Value
The Company’s significant financial assets and liabilities measured at fair value as of June 29, 2025 and December 29, 2024 were as follows:
 June 29, 2025December 29, 2024
(Dollars in Millions)Level 1Level 2Level 3Total
Total(1)
Derivatives designated as hedging instruments:     
Assets:     
Forward foreign exchange contracts $—1,006—1,006660
Interest rate contracts(2)
—431—4311,484
Total —1,437—1,4372,144
Liabilities:     
Forward foreign exchange contracts —774—774794
Interest rate contracts(2)
—6,234—6,2343,753
Total —7,008—7,0084,547
Derivatives not designated as hedging instruments:     
Assets:     
Forward foreign exchange contracts —57—5750
Liabilities:     
Forward foreign exchange contracts —72—7217
Other Investments:
Equity investments(3)
453——453451
Debt securities(4)
—2,094—2,0947,216
Other Liabilities:
Contingent consideration(5)
$——1,1571,1571,217
Gross to Net Derivative ReconciliationJune 29, 2025December 29, 2024
(Dollars in Millions)
Total Gross Assets$1,4942,194
Credit Support Agreement (CSA)(1,471)(2,172)
Total Net Asset2322
Total Gross Liabilities7,0804,564
Credit Support Agreement (CSA)(6,666)(4,412)
Total Net Liabilities$414152
Summarized information about changes in liabilities for contingent consideration for the fiscal second quarters ended June 29, 2025 and June 30, 2024 is as follows:
June 29, 2025June 30, 2024
(Dollars in Millions)
Beginning Balance$1,2171,092
Changes in estimated fair value(6)
(60)44
Additions—112
Payments——
Ending Balance$1,1571,248
(1)2024 assets and liabilities are all classified as Level 2 with the exception of equity investments of $451 million, which are classified as Level 1 and contingent consideration of $1,217 million, classified as Level 3.
(2)Includes cross currency interest rate swaps and interest rate swaps.
(3)Classified as non-current other assets.
(4)Classified within cash equivalents and current marketable securities.
(5)Includes $1,107 million and $1,217 million classified as non-current other liabilities as of June 29, 2025 and December 29, 2024, respectively. Includes $50 million classified as current liabilities as of June 29, 2025.
(6)Ongoing fair value adjustment amounts are primarily recorded in Research and Development expense.
Marketable Securities
The Company's cash, cash equivalents and current marketable securities as of June 29, 2025 comprised:
(Dollars in Millions)
Carrying
Amount
Unrealized Gain
Estimated
Fair Value
Cash & Cash
Equivalents
Current
Marketable
Securities
Cash$3,246—3,2463,246—
U.S. reverse repurchase agreements8,040—8,0408,040—
Money market funds4,637—4,6374,637—
Time deposits(1)
863—863863—
   Subtotal 16,786—16,78616,786—
U.S. Gov’t securities1,673—1,6731,65914
Other sovereign securities193—1939499
Corporate debt securities228—22838190
   Subtotal available for sale debt(2)
$2,094—2,0941,791303
Total cash, cash equivalents and current marketable securities$18,880—18,88018,577303
(1)Held to maturity investments are reported at amortized cost and gains or losses are reported in earnings.
(2)Available for sale debt securities are reported at fair value with unrealized gains and losses reported net of taxes in other comprehensive income.
Schedule of Available for Sale Securities Maturities
The contractual maturities of the available for sale securities as of June 29, 2025 are as follows:
(Dollars in Millions)Cost BasisFair Value
Due within one year$2,0752,075
Due after one year through five years1919
Due after five years through ten years——
Total debt securities$2,0942,094
Financial Liabilities not Measured at Fair Value
Financial instruments not measured at fair value
The following financial liabilities are held at carrying amount on the consolidated balance sheet as of June 29, 2025:
(Dollars in Millions)
Carrying
Amount
Estimated
Fair Value
Financial Liabilities  
Current Debt$11,52611,495
Non-Current Debt  
2.95% Notes due 2027
950984
0.95% Notes due 2027
1,4781,410
4.50% Notes due 2027(1)
749757
2.90% Notes due 2028
1,4981,460
1.150% Notes due 2028 (750MM Euro 1.1704)
881843
4.55% Notes due 2028(1)
748762
4.80% Notes due 2029
1,1461,181
6.95% Notes due 2029
299334
2.70% Notes due 2029 (600MM Euro 1.1704)(1)
706708
1.30% Notes due 2030
1,6761,521
4.70% Notes due 2030(1)
9951,022
4.90% Notes due 2031
1,1461,189
3.20% Notes due 2032 (700MM Euro 1.1704)
821834
4.85% Notes due 2032(1)
1,2421,281
4.95% Notes due 2033
499517
4.375% Notes due 2033
853847
3.050% Notes due 2033 ( 700MM Euro 1.1704)(1)
822822
4.95% Notes due 2034

847880
1.650% Notes due 2035 (1.5B Euro 1.1704)
1,7561,528
5.00% Notes due 2035(1)
1,2441,282
3.35% Notes due 2036 (800MM Euro 1.1704)

937939
3.587% Notes due 2036
905902
5.95% Notes due 2037
9941,103
3.625% Notes due 2037
1,3961,334
3.350% Notes due 2037 (1.0B Euro 1.1704)(1)
1,1751,160
3.40% Notes due 2038
993857
5.85% Notes due 2038
697761
4.50% Notes due 2040
542523
2.10% Notes due 2040
885684
4.85% Notes due 2041
298291
4.50% Notes due 2043
496459
3.55% Notes due 2044 (1.0B Euro 1.1704)
1,1031,135
3.60% Notes due 2045 (700MM Euro 1.1704)(1)
819792
3.73% Notes due 2046
1,9791,592
3.75% Notes due 2047
863798
3.50% Notes due 2048
744567
2.25% Notes due 2050
851580
5.25% Notes due 2054

843837
3.70% Notes due 2055 (1.0B Euro 1.1704)(1)
1,1721,118
2.45% Notes due 2060
1,102694
Other8588
Total Non-Current Debt$39,23537,376
(1) In the fiscal first quarter of 2025, the Company issued senior unsecured notes for approximately $9.2 billion. The net proceeds from this offering were used to fund the Intra-Cellular Therapies, Inc. acquisition which closed on April 2, 2025, and for general corporate purposes.