v3.25.2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
Financial assets and liabilities measured at fair value on a recurring basis are summarized below:
June 30, 2025December 31, 2024
Dollars in millionsLevel 1Level 2Level 3Level 1Level 2Level 3
Cash and cash equivalents
Money market and other securities$— $8,189 $— $— $6,559 $— 
Marketable debt securities
Certificates of deposit— 800 — — 308 — 
Corporate debt securities— 514 — — 486 — 
U.S. Treasury securities— 36 — — 39 — 
Derivative assets— 282 — — 750 — 
Equity investments238 39 — 247 42 — 
Derivative liabilities— 301 — — 247 — 
Contingent consideration liability
Contingent value rights(a)
2 — 592 2 — 256 
(a)    Includes the fair value of contingent value rights associated with the Mirati acquisition as further described in "—Note 4. Acquisitions, Divestitures, Licensing and Other Arrangements." The fair value of contingent value rights was estimated using a probability-weighted expected return method and was based on significant unobservable inputs, including the discount rate and the estimated probability and timing of achieving a specified regulatory milestone. During the three months ended June 30, 2025, the change in fair value of $336 million reflected revised assumptions primarily related to the probability of achieving the specified regulatory milestone and was recorded within Other (income)/expense, net.
Schedule of Equity Investments
The following summarizes the carrying amount of equity investments:
Dollars in millionsJune 30,
2025		December 31,
2024
Equity investments with RDFV
$277 $289 
Equity investments without RDFV
848 863 
Limited partnerships and other equity method investments581 598 
Total equity investments$1,706 $1,750 
Debt Securities, Trading, and Equity Securities, FV-NI
The following summarizes the activity related to equity investments. Changes in fair value of equity investments are included in Other (income)/expense, net.
Three Months Ended June 30,Six Months Ended June 30,
Dollars in millions2025202420252024
Equity investments with RDFV
Net (gain)/loss recognized
$(4)$(36)$1 $(122)
Less: net (gain)/loss recognized on investments sold
2 — 5 1 
Net unrealized (gain)/loss recognized on investments still held
(6)(36)(4)(123)
Equity investments without RDFV
Upward adjustments
(11)(11)(11)(21)
Net realized (gain)/loss recognized on investments sold
— (36)19 (36)
Impairments and downward adjustments
— 4 45 29 
Limited partnerships and other equity method investments
Equity in net (income)/loss of affiliates
37 (28)46 (59)
Total equity investment (gains)/losses
$22 $(107)$100 $(209)
Schedule of Derivatives and Fair Value
The following table summarizes the fair value and the notional values of outstanding derivatives:
 June 30, 2025December 31, 2024
Asset(a)
Liability(b)
Asset(a)
Liability(b)
Dollars in millionsNotionalFair ValueNotionalFair ValueNotionalFair ValueNotionalFair Value
Designated as cash flow hedges
Foreign currency exchange contracts
$4,626 $68 $2,296 $(151)$6,428 $424 $43 $— 
Cross-currency swap contracts584 74 — — 584 26 626 (30)
Designated as net investment hedges
Foreign currency exchange contracts
— — — — 185 17 — — 
Cross-currency swap contracts308 5 398 (53)361 23 346 (7)
Designated as fair value hedges
Interest rate swap contracts3,300 49 1,255 (7)1,500 10 1,955 (20)
Not designated as hedges
Foreign currency exchange contracts2,855 69 3,077 (90)5,749 250 5,243 (173)
Total return swap contracts(c)
452 17 — — — — 443 (17)
(a)    Included in Other current assets and Other non-current assets.
(b)    Included in Other current liabilities and Other non-current liabilities.
(c)    Total return swap contracts hedge changes in fair value of certain deferred compensation liabilities.
Derivative Instruments, Gain (Loss)
The following table summarizes the financial statement classification and amount of (gain)/loss recognized on hedges:

Three Months Ended June 30, 2025Six Months Ended June 30, 2025
Dollars in millionsCost of products soldOther (income)/expense, netCost of products soldOther (income)/expense, net
Foreign exchange contracts
$13 $8 $(13)$24 
Cross-currency swap contracts— (76)— (126)
Interest rate swap contracts— — — (1)
Forward interest rate contracts
— (2)— (3)
Three Months Ended June 30, 2024Six Months Ended June 30, 2024
Dollars in millionsCost of products soldOther (income)/expense, netCost of products soldOther (income)/expense, net
Foreign currency exchange contracts$(29)$(40)$(74)$(53)
Cross-currency swap contracts— 7 — 36 
Interest rate swap contracts— 4 — 7 
Forward interest rate contracts
— (1)— (2)
The following table summarizes the effect of derivative and non-derivative instruments designated as hedges in Other comprehensive income/(loss):
Three Months Ended June 30,Six Months Ended June 30,
Dollars in millions2025202420252024
Derivatives designated as cash flow hedges
Foreign exchange contracts gain/(loss):
Recognized in Other comprehensive income/(loss)$(299)$102 $(515)$241 
Reclassified to Cost of products sold13 (29)(13)(74)
Cross-currency swap contracts gain/(loss):
Recognized in Other comprehensive income/(loss)70 (18)94 (34)
Reclassified to Other (income)/expense, net(73)10 (121)41 
Forward interest rate contract gain/(loss):
Recognized in Other comprehensive income/(loss)
— — — 131 
Reclassified to Other (income)/expense, net(2)(1)(3)(2)
Derivatives designated as net investment hedges
Cross-currency swap contracts gain/(loss):
Recognized in Other comprehensive income/(loss)(45)23 (63)50
Foreign exchange contracts gain/(loss):
Recognized in Other comprehensive income/(loss)(15)18 (78)41