v3.26.3
Financial Instruments (Tables)
 9 Months Ended
Sep. 27, 2026
Fair Value Disclosures [Abstract]  
Schedule of Financial Assets and Liabilities Measured At Fair Value On a Recurring Basis
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis and Fair Value Hierarchy:
September 27, 2026December 31, 2025
(MILLIONS)TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Financial assets:
Short-term investments
Equity securities with readily determinable fair value(a)
$1,650 $— $1,650 $— $2,596 $— $2,596 $— 
Available-for-sale debt securities:
Government and agency—non-U.S.
4,498 — 4,498 — 4,859 — 4,859 — 
Government and agency—U.S.
2,553 — 2,553 — 3,030 — 3,030 — 
Corporate and other
2,068 — 2,068 — 1,294 — 1,294 — 
9,118 — 9,118 — 9,183 — 9,183 — 
Total short-term investments10,768 — 10,768 — 11,779 — 11,779 — 
Other current assets
Derivative assets:
Interest rate contracts
7 — 7 — — — — — 
Foreign exchange contracts
481 — 481 — 416 — 416 — 
Total other current assets488 — 488 — 416 — 416 — 
Long-term investments
Equity securities with readily determinable fair values(b)
484 484 — — 642 642 — — 
Available-for-sale debt securities:
Government and agency—non-U.S.
— — — — 1 — 1 — 
Corporate and other
— — — — — — — — 
— — — — 1 — 1 — 
Total long-term investments484 484 — — 642 642 1 — 
Other noncurrent assets
Derivative assets:
Interest rate contracts
— — — — 52 — 52 — 
Foreign exchange contracts
148 — 148 — 64 — 64 — 
Total derivative assets148 — 148 — 116 — 116 — 
Insurance contracts(c)
1,103 — 1,103 — 999 — 999 — 
Total other noncurrent assets1,251 — 1,251 — 1,115 — 1,115 — 
Total assets$12,992 $484 $12,508 $— $13,953 $642 $13,311 $— 
Financial liabilities:
Other current liabilities
Derivative liabilities:
Interest rate contracts$— $— $— $— $16 $— $16 $— 
Foreign exchange contracts
240 — 240 — 412 — 412 — 
Contingent consideration liabilities(d)
73 — — 73 95 — — 95 
Total other current liabilities313 — 240 73 523 — 428 95 
Other noncurrent liabilities
Derivative liabilities:
Interest rate contracts737 — 737 — 215 — 215 — 
Foreign exchange contracts
652 — 652 — 815 — 815 — 
Contingent consideration liabilities(d)
2,308 — — 2,308 1,695 — — 1,695 
Total other noncurrent liabilities3,697 — 1,389 2,308 2,725 — 1,030 1,695 
Total liabilities$4,010 $— $1,629 $2,381 $3,248 $— $1,458 $1,790 
(a)Includes money market funds primarily invested in U.S. Treasury and government debt.
(b)Long-term equity securities of $122 million as of September 27, 2026 and $146 million as of December 31, 2025 were held in restricted trusts for U.S. non-qualified employee benefit plans.
(c)Includes life insurance policies held in restricted trusts for U.S. non-qualified employee benefit plans. The underlying invested assets in these contracts are marketable securities, which are carried at fair value, with changes in fair value recognized in Other (income)/deductions—net (see Note 4).
(d)Includes the fair value of contingent consideration associated with the acquisition of Metsera and certain prior business combinations. Fair value is estimated by using a probability-weighted discounted cash flow approach (see Notes 1D and 16D in our 2025 Form 10-K and Note 2A for additional information on contingent consideration liabilities).
Schedule of Changes in Contingent Consideration Liabilities
The following provides the changes in our contingent consideration liabilities valued using significant unobservable inputs:
Nine Months Ended
(MILLIONS)September 27,
2026		September 28,
2025
Fair value, beginning$1,790 $517 
Changes in estimated fair value(a)
709 57 
Additions— — 
Settlements and other
(118)(54)
Transfer into/(out of) Level 3— — 
Fair value, ending$2,381 $520 
(a)Reported in Other (income)/deductions––net. See Note 4. The amount in the first nine months of 2026 is primarily related to our acquisition of Metsera.
Investments by Classification Type
The following summarizes our investments by classification type:
(MILLIONS)September 27,
2026		 December 31, 2025
Short-term investments
Equity securities with readily determinable fair values
$1,650 $2,596 
Available-for-sale debt securities9,118 9,183 
Held-to-maturity debt securities1,680 675 
Total Short-term investments$12,448 $12,454 
Long-term investments
Equity securities with readily determinable fair values(a)
$484 $642 
Available-for-sale debt securities— 1 
Held-to-maturity debt securities53 48 
Private equity securities at cost(a)
654 696 
Equity-method investments262 235 
Total Long-term investments$1,453 $1,621 
(a)Represent investments in the life sciences sector.
Schedule of Held-to-maturity Securities
Our investment portfolio consists of investment-grade debt securities issued across diverse governments, corporate and financial institutions:
September 27, 2026December 31, 2025
Gross Unrealized
 Maturities (in Years)
Gross Unrealized
(MILLIONS)Amortized CostGainsLossesFair ValueWithin 1Over 1
to 5		Over 5Amortized CostGainsLossesFair Value
Available-for-sale debt securities
Government and agency––non-U.S.
$4,482 $18 $(3)$4,498 $4,498 $— $— $4,890 $3 $(34)$4,859 
Government and agency––U.S.
2,553 — — 2,553 2,553 — — 3,030 — — 3,030 
Corporate and other2,067 1 — 2,068 2,068 — — 1,295 — (1)1,294 
Held-to-maturity debt securities
Corporate, time deposits and other
964 — — 964 917 9 39 487 — — 487 
Government and agency––non-U.S.
768 — — 768 763 4 1 236 — — 236 
Total debt securities$10,834 $19 $(3)$10,851 $10,798 $13 $40 $9,938 $3 $(35)$9,906 
Schedule of Available-for-sale Securities
Our investment portfolio consists of investment-grade debt securities issued across diverse governments, corporate and financial institutions:
September 27, 2026December 31, 2025
Gross Unrealized
 Maturities (in Years)
Gross Unrealized
(MILLIONS)Amortized CostGainsLossesFair ValueWithin 1Over 1
to 5		Over 5Amortized CostGainsLossesFair Value
Available-for-sale debt securities
Government and agency––non-U.S.
$4,482 $18 $(3)$4,498 $4,498 $— $— $4,890 $3 $(34)$4,859 
Government and agency––U.S.
2,553 — — 2,553 2,553 — — 3,030 — — 3,030 
Corporate and other2,067 1 — 2,068 2,068 — — 1,295 — (1)1,294 
Held-to-maturity debt securities
Corporate, time deposits and other
964 — — 964 917 9 39 487 — — 487 
Government and agency––non-U.S.
768 — — 768 763 4 1 236 — — 236 
Total debt securities$10,834 $19 $(3)$10,851 $10,798 $13 $40 $9,938 $3 $(35)$9,906 
Contractual Maturities of Available-for-sale and Held-to-maturity Debt Securities
Our investment portfolio consists of investment-grade debt securities issued across diverse governments, corporate and financial institutions:
September 27, 2026December 31, 2025
Gross Unrealized
 Maturities (in Years)
Gross Unrealized
(MILLIONS)Amortized CostGainsLossesFair ValueWithin 1Over 1
to 5		Over 5Amortized CostGainsLossesFair Value
Available-for-sale debt securities
Government and agency––non-U.S.
$4,482 $18 $(3)$4,498 $4,498 $— $— $4,890 $3 $(34)$4,859 
Government and agency––U.S.
2,553 — — 2,553 2,553 — — 3,030 — — 3,030 
Corporate and other2,067 1 — 2,068 2,068 — — 1,295 — (1)1,294 
Held-to-maturity debt securities
Corporate, time deposits and other
964 — — 964 917 9 39 487 — — 487 
Government and agency––non-U.S.
768 — — 768 763 4 1 236 — — 236 
Total debt securities$10,834 $19 $(3)$10,851 $10,798 $13 $40 $9,938 $3 $(35)$9,906 
Schedule of Gains and Losses on Investment Securities
The following presents the calculation of the portion of unrealized (gains)/losses that relates to equity securities, excluding equity-method investments, held at the reporting date:
Three Months EndedNine Months Ended
(MILLIONS)September 27,
2026		September 28,
2025		September 27,
2026		September 28,
2025
Net (gains)/losses recognized during the period on equity securities(a)
$75 $(201)$121 $94 
Less: Net (gains)/losses recognized during the period on equity securities sold during the period(59)(224)(81)(1,159)
Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date
$134 $23 $202 $1,253 
(a)Reported in Other (income)/deductions––net. See Note 4.
Schedule of Short-term Borrowings
Short-term borrowings include:
(MILLIONS) September 27,
2026		 December 31, 2025
Current portion of long-term debt, principal amount$2,605 $3,000 
Other short-term borrowings, principal amount(a)
70 157 
Total short-term borrowings, principal amount
2,675 3,157 
Net unamortized discounts, premiums and debt issuance costs(1)(3)
Total Short-term borrowings, including current portion of long-term debt, carried at historical proceeds, as adjusted
$2,674 $3,154 
(a)Primarily includes cash collateral. See Note 7F.
Schedule of Senior Unsecured Notes Issued, Principal Amounts of Senior Unsecured Long-Term Debt and Adjustments
The following summarizes the aggregate principal amount of our senior unsecured long-term debt, and adjustments to report our aggregate long-term debt:
(MILLIONS)September 27,
2026		 December 31, 2025
Total long-term debt, principal amount$60,263 $61,293 
Net fair value adjustments related to hedging and purchase accounting191 834 
Net unamortized discounts, premiums and debt issuance costs(457)(486)
Total long-term debt, carried at historical proceeds, as adjusted$59,997 $61,641 
Schedule of Derivative Instruments
The following summarizes the fair value of the derivative financial instruments and notional amounts:
September 27, 2026December 31, 2025
Fair ValueFair Value
(MILLIONS)NotionalAssetLiabilityNotionalAssetLiability
Derivatives designated as hedging instruments:
Foreign exchange contracts(a)
$23,670 $479 $723 $22,984 $325 $1,066 
Interest rate contracts9,245 7 737 6,750 52 230 
486 1,460 377 1,296 
Derivatives not designated as hedging instruments:
Foreign exchange contracts$14,971 151 169 $22,777 155 162 
Total$637 $1,629 $532 $1,458 
(a)The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $4.9 billion as of September 27, 2026 and $5.0 billion as of December 31, 2025.
Schedule of Derivative Assets
The following summarizes the fair value of the derivative financial instruments and notional amounts:
September 27, 2026December 31, 2025
Fair ValueFair Value
(MILLIONS)NotionalAssetLiabilityNotionalAssetLiability
Derivatives designated as hedging instruments:
Foreign exchange contracts(a)
$23,670 $479 $723 $22,984 $325 $1,066 
Interest rate contracts9,245 7 737 6,750 52 230 
486 1,460 377 1,296 
Derivatives not designated as hedging instruments:
Foreign exchange contracts$14,971 151 169 $22,777 155 162 
Total$637 $1,629 $532 $1,458 
(a)The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $4.9 billion as of September 27, 2026 and $5.0 billion as of December 31, 2025.
Schedule of Derivative Liabilities
The following summarizes the fair value of the derivative financial instruments and notional amounts:
September 27, 2026December 31, 2025
Fair ValueFair Value
(MILLIONS)NotionalAssetLiabilityNotionalAssetLiability
Derivatives designated as hedging instruments:
Foreign exchange contracts(a)
$23,670 $479 $723 $22,984 $325 $1,066 
Interest rate contracts9,245 7 737 6,750 52 230 
486 1,460 377 1,296 
Derivatives not designated as hedging instruments:
Foreign exchange contracts$14,971 151 169 $22,777 155 162 
Total$637 $1,629 $532 $1,458 
(a)The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $4.9 billion as of September 27, 2026 and $5.0 billion as of December 31, 2025.
Information about Gains/(Losses) Incurred to Hedge or Offset Operational Foreign Exchange or Interest Rate Risk
The following summarizes information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk exposures:
Gains/(Losses)
Recognized in OID(a)
Gains/(Losses)
Recognized in OCI(a)
Gains/(Losses)
Reclassified from
OCI into OID and COS(a)
Three Months Ended
(MILLIONS)Sept. 27, 2026Sept. 28, 2025Sept. 27, 2026Sept. 28, 2025Sept. 27, 2026Sept. 28, 2025
Derivative Financial Instruments in Cash Flow Hedge Relationships:
Interest rate contracts$— $— $— $— $— $— 
Foreign exchange contracts(b)
— — 99 (11)36 (187)
Amount excluded from effectiveness testing and amortized into earnings(c)
— — 5 10 6 10 
Derivative Financial Instruments in Fair Value Hedge Relationships:
Interest rate contracts(478)13 — — — — 
Hedged item 480 (13)— — — — 
Derivative Financial Instruments in Net Investment Hedge Relationships:
Foreign exchange contracts— — 12 88 — — 
Amount excluded from effectiveness testing and amortized into earnings(c)
— — 57 89 60 56 
Non-Derivative Financial Instruments in Net Investment Hedge Relationships(d):
Foreign currency short-term borrowings— — 2 — — — 
Foreign currency long-term debt— — — 5 — — 
Derivative Financial Instruments Not Designated as Hedges:
Foreign exchange contracts10 15 — — — — 
$12 $15 $175 $181 $102 $(120)
Gains/(Losses)
Recognized in OID(a)
Gains/(Losses)
Recognized in OCI(a)
Gains/(Losses)
Reclassified from
OCI into OID and COS(a)
Nine Months Ended
(MILLIONS)Sept. 27, 2026Sept. 28, 2025Sept. 27, 2026Sept. 28, 2025Sept. 27, 2026Sept. 28, 2025
Derivative Financial Instruments in Cash Flow Hedge Relationships:
Interest rate contracts$— $— $— $— $— $— 
Foreign exchange contracts(b)
— — 160 (438)14 200 
Amount excluded from effectiveness testing and amortized into earnings(c)
— — 29 42 29 42 
Derivative Financial Instruments in Fair Value Hedge Relationships:
Interest rate contracts(574)228 — — — — 
Hedged item574 (228)— — — — 
Derivative Financial Instruments in Net Investment Hedge Relationships:
Foreign exchange contracts— — 422 (1,273)— — 
Amount excluded from effectiveness testing and amortized into earnings(c)
— — 110 237 173 150 
Non-Derivative Financial Instruments in Net Investment Hedge Relationships(d):
Foreign currency short-term borrowings— — 28 — — — 
Foreign currency long-term debt— — (2)(97)— — 
Derivative Financial Instruments Not Designated as Hedges:
Foreign exchange contracts(34)103 — — — — 
$(34)$103 $747 $(1,528)$217 $392 
(a)OID = Other (income)/deductions—net, included in Other (income)/deductions—net in the condensed consolidated statements of operations. COS = Cost of Sales, included in Cost of sales in the condensed consolidated statements of operations. OCI = Other comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income/(loss).
(b)The amounts reclassified from OCI into COS were:
•a net gain of $14 million in the third quarter of 2026;
•a net loss of $6 million in the first nine months of 2026;
•a net loss of $23 million in the third quarter of 2025; and
•a net gain of $69 million in the first nine months of 2025.
The remaining amounts were reclassified from OCI into OID. Based on quarter-end foreign exchange rates that are subject to change, we expect to reclassify a pre-tax gain of $53 million within the next 12 months into income. The maximum length of time over which we are hedging our exposure to the variability in future foreign exchange cash flows is approximately 17 years and relates to foreign currency debt.
(c)The amounts reclassified from OCI were reclassified into OID.
(d)Long-term debt includes foreign currency borrowings, which are used in net investment hedges; the related carrying values as of September 27, 2026 and December 31, 2025 were $854 million and $879 million, respectively.
Schedule of Total Amount of Each Income and Expense Line in which Results of Fair Value Hedges are Recorded
The following summarizes cumulative basis adjustments to our long-term debt in fair value hedges:
September 27, 2026December 31, 2025
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to
Carrying Amount		Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to
Carrying Amount
(MILLIONS)
Carrying Amount of Hedged Assets/Liabilities(a)
Active Hedging RelationshipsDiscontinued Hedging Relationships
Carrying Amount of Hedged Assets/Liabilities(a)
Active Hedging RelationshipsDiscontinued Hedging Relationships
Long-term debt$9,839 $(737)$767 $7,110 $(163)$821 
(a)Carrying amounts exclude the cumulative amount of fair value hedging adjustments.