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Fair value measurements (Tables) | 12 Months Ended
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Dec. 29, 2024
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 29, 2024 and December 31, 2023, net of tax:
| December 29, 2024 |  | December 31, 2023
(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 | $— | — | — | 64 | — |  | — | — | — | 168 | —
Derivatives designated as hedging instruments | — | — | — | (64) | — |  | — | — | — | (168) | —
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 | $— | — | — | 148 | — |  | — | — | — | 130 | —
Amount of gain or (loss) recognized in AOCI | — | — | — | 148 | — |  | — | — | — | 130 | —
Gain (Loss) on cash flow hedging relationship: |  |  |  |  |  |  |  |  |  |  |
Forward foreign exchange contracts: |  |  |  |  |  |  |  |  |  |  |
Amount of gain or (loss) reclassified from AOCI into income | 2 | 426 | 33 | — | 6 |  | 7 | 186 | (37) | — | 8
Amount of gain or (loss) recognized in AOCI | (7) | (156) | 80 | — | 21 |  | 10 | 447 | (18) | — | 9
Cross currency interest rate swaps contracts: |  |  |  |  |  |  |  |  |  |  |
Amount of gain or (loss) reclassified from AOCI into income | — | — | — | 247 | — |  | — | — | — | 275 | —
Amount of gain or (loss) recognized in AOCI | $— | — | — | (597) | — |  | — | — | — | (156) | —
As of December 29, 2024 and December 31, 2023, 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 Liability |  | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability
(Dollars in Millions) |  | December 29, 2024 |  | December 31, 2023 |  | December 29, 2024 |  | December 31, 2023
Long-term Debt |  | $7,935 |  | $8,862 |  | $(1,132) |  | $(1,216)
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 29, 2024 and December 31, 2023:
(Dollars in Millions) |  | Location of Gain /(Loss) Recognized in Income on Derivative |  | Gain/(Loss) Recognized In Income on Derivative
Derivatives Not Designated as Hedging Instruments |  |  |  | December 29, 2024 |  | December 31, 2023
Foreign Exchange Contracts |  | Other (income) expense |  | $8 |  | (60)
Schedule of Effect of Net Investment Hedges | The following table is the effect of net investment hedges for the fiscal years ended December 29, 2024 and December 31, 2023:
|  | 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 29, 2024 |  | December 31, 2023 |  |  |  | December 29, 2024 |  | December 31, 2023
Debt |  | $282 |  | (131) |  | Interest (income) expense |  | — |  | —
Cross Currency interest rate swaps |  | $955 |  | 642 |  | Interest (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 29, 2024 and December 31, 2023:
|  | December 31, 2023 |  |  |  |  |  | December 29, 2024
(Dollars in Millions) |  | Carrying Value |  | Changes in Fair Value Reflected in Net Income(1) |  | Sales/ Purchases/ Other(2) |  | Carrying Value |  | Non-Current Other Assets
Equity Investments with readily determinable value * |  | $4,473 |  | (17) |  | (4,005) |  | 451 |  | 451
Equity Investments without readily determinable value |  | $696 |  | (197) |  | 274 |  | 773 |  | 773
|  | January 1, 2023 |  |  |  |  |  | December 31, 2023
(Dollars in Millions) |  | Carrying Value |  | Changes in Fair Value Reflected in Net Income(1) |  | Sales/ Purchases/ Other(2) |  | Carrying Value |  | Non-Current Other Assets
Equity Investments with readily determinable value * |  | $576 |  | (368) |  | 4,265 |  | 4,473 |  | 4,473
Equity Investments without readily determinable value |  | $613 |  | 1 |  | 82 |  | 696 |  | 696
(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 29, 2024 and December 31, 2023 were as follows:
|  | 2024 |  | 2023
(Dollars in Millions) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Total(1)
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |
Forward foreign exchange contracts |  | $— |  | 660 |  | — |  | 660 |  | 539
Interest rate contracts(2) |  | — |  | 1,484 |  | — |  | 1,484 |  | 988
Total |  | $— |  | 2,144 |  | — |  | 2,144 |  | 1,527
Liabilities: |  |  |  |  |  |  |  |  |  |
Forward foreign exchange contracts |  | — |  | 794 |  | — |  | 794 |  | 624
Interest rate contracts(2) |  | — |  | 3,753 |  | — |  | 3,753 |  | 5,338
Total |  | $— |  | 4,547 |  | — |  | 4,547 |  | 5,962
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |
Forward foreign exchange contracts |  | $— |  | 50 |  | — |  | 50 |  | 64
Liabilities: |  |  |  |  |  |  |  |  |  |
Forward foreign exchange contracts |  | — |  | 17 |  | — |  | 17 |  | 75
Available For Sale Other Investments: |  |  |  |  |  |  |  |  |  |
Equity investments(3) |  | 451 |  | — |  | — |  | 451 |  | 4,473
Debt securities(4) |  | — |  | 7,216 |  | — |  | 7,216 |  | 8,874
Other Liabilities |  |  |  |  |  |  |  |  |  |
Contingent Consideration(5) |  | $ |  |  |  | 1,217 |  | 1,217 |  | 1,092
Gross to Net Derivative Reconciliation |  | 2024 |  | 2023
(Dollars in Millions) |  |  |  |
Total Gross Assets |  | $2,194 |  | 1,591
Credit Support Agreements (CSA) |  | (2,172) |  | (1,575)
Total Net Asset |  | 22 |  | 16
Total Gross Liabilities |  | 4,564 |  | 6,037
Credit Support Agreements (CSA) |  | (4,412) |  | (5,604)
Total Net Liabilities |  | $152 |  | 433
Summarized information about changes in liabilities for contingent consideration is as follows:
| 2024 |  | 2023 |  | 2022
(Dollars in Millions) |  |  |  |  |
Beginning Balance | $1,092 |  | 1,120 |  | 533
Changes in estimated fair value | 88 |  | 29 |  | (194)
Additions(6) | 112 |  | — |  | 792
Payments/Other | (75) |  | (57) |  | (11)
Ending Balance(5) | $1,217 |  | 1,092 |  | 1,120
(1)2023 assets and liabilities are all classified as Level 2 with the exception of equity investments of $4,473 million, which are classified as Level 1 and contingent consideration of $1,092 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 $1,217 million, $1,092 million and $1,116 million, classified as non-current other liabilities as of December 29, 2024, December 31, 2023 and January 1, 2023, respectively. Includes $4 million classified as current liabilities as of January 1, 2023. (6)In fiscal year 2024, the Company recorded $105 million of contingent consideration related to Proteologix. In fiscal year 2022, the Company recorded $704 million of contingent consideration related to Abiomed.

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