v3.25.4
Fair value measurements (Tables)
 12 Months Ended
Dec. 28, 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 years ended December 28, 2025 and December 29, 2024, net of tax:
December 28, 2025December 29, 2024
(Dollars in Millions)SalesCost of
Products
Sold		R&D
Expense		Interest
(Income)
Expense		Other
(Income)
Expense		SalesCost 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$———338————64—
Derivatives designated as hedging instruments———(338)————(64)—
Gain (Loss) on net investment hedging relationship:
Cross currency interest rate swaps contracts:
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing$———193————148—
Amount of gain or (loss) recognized in AOCI———193————148—
Gain (Loss) on cash flow hedging relationship:
Forward foreign exchange contracts:
Amount of gain or (loss) reclassified from AOCI into income441(52)—(19)242633—6
Amount of gain or (loss) recognized in AOCI11715(109)—(44)(7)(156)80—21
Cross currency interest rate swaps contracts:
Amount of gain or (loss) reclassified from AOCI into income———326————247—
Amount of gain or (loss) recognized in AOCI$———1,187————(597)—
As of December 28, 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 included		Carrying Amount of the Hedged LiabilityCumulative Amount of Fair Value Hedging
Adjustment Included in the Carrying
Amount of the Hedged Liability
(Dollars in Millions)December 28, 2025December 29, 2024December 28, 2025December 29, 2024
Long-term Debt$8,318$7,935$(694)$(1,132)
Schedule of Effect of Derivatives not Designated as Hedging Instruments
The following table is the effect of derivatives not designated as hedging instrument for the fiscal years ended
December 28, 2025 and December 29, 2024:
(Dollars in Millions)Location of Gain /(Loss)
Recognized in Income on
Derivative		Gain/(Loss)
Recognized In
Income on Derivative
Derivatives Not Designated as Hedging InstrumentsDecember 28, 2025December 29, 2024
Foreign Exchange ContractsOther (income) expense$(265)8
Schedule of Effect of Net Investment Hedges
The following table is the effect of net investment hedges for the fiscal years ended December 28, 2025 and
December 29, 2024:
Gain/(Loss)
Recognized In
Accumulated OCI
Location of Gain or
(Loss) Reclassified
from Accumulated
Other Comprehensive
Income Into Income
Gain/(Loss)
Reclassified from
Accumulated OCI
Into Income
(Dollars in Millions)December 28, 2025December 29, 2024December 28, 2025December 29, 2024
Debt$(1,190)282Interest (income) expense——
Cross Currency interest rate swaps$277955Interest (income) expense——
Summary of Activity Related to Equity Investments
The following table is a summary of the activity related to equity investments for the fiscal years ended December 28, 2025 and December 29, 2024:
December 29, 2024December 28, 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$451230(16)665665
Equity Investments without readily determinable value$773253(116)910910
December 31, 2023December 29, 2024
(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*$4,473(17)(4,005)451451
Equity Investments without readily determinable value$696(197)274773773
(1)Recorded in Other Income/Expense
(2)Other includes impact of currency
*    The December 31, 2023 balance includes the 9.5% remaining stake in Kenvue. A debt-for-equity exchange was completed in the fiscal second quarter of 2024.
Financial Assets and Liabilities at Fair Value
The Company’s significant financial assets and liabilities measured at fair value as of the fiscal year ended December 28, 2025 and December 29, 2024 were as follows:
20252024
(Dollars in Millions)Level 1Level 2Level 3Total
Total(1)
Derivatives designated as hedging instruments:     
Assets:     
Forward foreign exchange contracts $—686—686660
Interest rate contracts(2)
—589—5891,484
Total$—1,275—1,2752,144
Liabilities:     
Forward foreign exchange contracts—413—413794
Interest rate contracts(2)
—5,848—5,8483,753
Total$—6,261—6,2614,547
Derivatives not designated as hedging instruments:     
Assets:     
Forward foreign exchange contracts $—38—3850
Liabilities:     
Forward foreign exchange contracts—46—4617
Available For Sale Other Investments:
Equity investments(3)
665——665451
Debt securities(4)
—2,854—2,8547,216
Other Liabilities
Contingent Consideration(5)
$7537531,217
Gross to Net Derivative Reconciliation20252024
(Dollars in Millions)
Total Gross Assets$1,3132,194
Credit Support Agreements (CSA)(1,308)(2,172)
Total Net Asset522
Total Gross Liabilities6,3074,564
Credit Support Agreements (CSA)(5,903)(4,412)
Total Net Liabilities$404152
Summarized information about changes in liabilities for contingent consideration is as follows:
202520242023
(Dollars in Millions)
Beginning Balance
$1,2171,0921,120
Changes in estimated fair value(6)
(387)8829
Additions(7)
—112—
Payments/Other
(77)(75)(57)
Ending Balance(5)
$7531,2171,092
(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 as cash equivalents and current marketable securities.
(5)Includes $753 million, $1,217 million and $1,092 million, classified as non-current other liabilities as of December 28, 2025,
December 29, 2024 and December 31, 2023, respectively.
(6)In fiscal year 2025, the Company recorded a reduction of $364 million to the CVR liability associated with the 2022 Abiomed acquisition based on the reduced probability of the achievement of certain developmental and commercial milestones by the dates required in the CVR agreement. The remaining CVR balance is $0.4 billion.
(7)In fiscal year 2024, the Company recorded $105 million of contingent consideration related to Proteologix.
As of December 28, 2025 and December 29, 2024, cash and cash equivalents includes money market funds of $5,993 million and $6,123 million, respectively, which would be considered level 1 in the fair value hierarchy