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Financial Instruments (Tables)
 3 Months Ended
Apr. 04, 2021
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, using a Market Approach:
April 4, 2021December 31, 2020
(MILLIONS)TotalLevel 1Level 2TotalLevel 1Level 2
Financial assets:
Short-term investments
Classified as equity securities with readily determinable fair values:
Money market funds$1,427 $— $1,427 $567 $— $567 
Classified as available-for-sale debt securities:
Government and agency—non-U.S.
6,169 — 6,169 7,719 — 7,719 
Government and agency—U.S.
1,221 — 1,221 982 — 982 
Corporate and other
902 — 902 1,008 — 1,008 
8,292 — 8,292 9,709 — 9,709 
Total short-term investments9,719 — 9,719 10,276 — 10,276 
Other current assets
Derivative assets:
Interest rate contracts
5 — 5 18 — 18 
Foreign exchange contracts
389 — 389 234 — 234 
Total other current assets394 — 394 251 — 251 
Long-term investments
Classified as equity securities with readily determinable fair values(a)
3,123 3,046 77 2,809 2,776 32 
Classified as available-for-sale debt securities:
Government and agency—non-U.S.
9 — 9 6 — 6 
Government and agency—U.S.
66 — 66 121 — 121 
Corporate and other
— — — — — — 
75 — 75 128 — 128 
Total long-term investments3,198 3,046 152 2,936 2,776 160 
Other noncurrent assets
Derivative assets:
Interest rate contracts
21 — 21 117 — 117 
Foreign exchange contracts
106 — 106 5 — 5 
Total derivative assets127 — 127 122 — 122 
Insurance contracts(b)
726 — 726 693 — 693 
Total other noncurrent assets853 — 853 814 — 814 
Total assets$14,165 $3,046 $11,119 $14,278 $2,776 $11,501 
Financial liabilities:
Other current liabilities
Derivative liabilities:
Foreign exchange contracts
$239 $— $239 $501 $— $501 
Total other current liabilities239 — 239 501 — 501 
Other noncurrent liabilities
Derivative liabilities:
Foreign exchange contracts
494 — 494 599 — 599 
Total other noncurrent liabilities494 — 494 599 — 599 
Total liabilities$732 $— $732 $1,100 $— $1,100 
(a)Long-term equity securities of $168 million as of April 4, 2021 and $190 million as of December 31, 2020 were held in restricted trusts for employee benefit plans.
(b)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).
Schedule of Financial Liabilities Not Measured At Fair Value On a Recurring Basis
Carrying values and estimated fair values using a market approach:
April 4, 2021December 31, 2020
(MILLIONS)Carrying ValueEstimated Fair Value at Level 2Carrying ValueEstimated Fair Value at Level 2
Financial Liabilities
Long-term debt, excluding the current portion$35,347 $40,504 $37,133 $45,533 
Investments by Classification Type
The following summarizes our investments by classification type:
(MILLIONS)April 4, 2021December 31, 2020
Short-term investments
Equity securities with readily determinable fair values(a)
$1,427 $567 
Available-for-sale debt securities8,292 9,709 
Held-to-maturity debt securities2,180 161 
Total Short-term investments$11,899 $10,437 
Long-term investments
Equity securities with readily determinable fair values$3,123 $2,809 
Available-for-sale debt securities75 128 
Held-to-maturity debt securities31 37 
Private equity securities at cost(b)
467 432 
Total Long-term investments$3,696 $3,406 
Equity-method investments16,532 16,856 
Total long-term investments and equity-method investments$20,228 $20,262 
Held-to-maturity cash equivalents$60 $89 
(a)As of April 4, 2021 and December 31, 2020, includes money market funds primarily invested in U.S. Treasury and government debt.
(b)Represent investments in the life sciences sector.
Schedule of Held-to-maturity Securities
At April 4, 2021, our debt investment portfolio consisted of debt securities issued across diverse governments, corporate and financial institutions, which are investment-grade. The contractual or estimated maturities, are as follows:
April 4, 2021December 31, 2020
Gross UnrealizedMaturities (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.
$6,209 $23 $(54)$6,178 $6,169 $9 $— $7,593 $136 $(4)$7,725 
Government and agency––U.S.
1,288 — (1)1,287 1,221 66 — 1,104 — (1)1,103 
Corporate and other900 3 — 903 902 — — 1,006 2 — 1,008 
Held-to-maturity debt securities
Time deposits and other
423 — — 423 397 16 10 283 — — 283 
Government and agency––non-U.S.
1,847 — — 1,847 1,842 4 1 5 — — 5 
Total debt securities$10,667 $25 $(55)$10,637 $10,531 $94 $11 $9,991 $138 $(5)$10,124 
Schedule of Available-for-sale Securities
At April 4, 2021, our debt investment portfolio consisted of debt securities issued across diverse governments, corporate and financial institutions, which are investment-grade. The contractual or estimated maturities, are as follows:
April 4, 2021December 31, 2020
Gross UnrealizedMaturities (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.
$6,209 $23 $(54)$6,178 $6,169 $9 $— $7,593 $136 $(4)$7,725 
Government and agency––U.S.
1,288 — (1)1,287 1,221 66 — 1,104 — (1)1,103 
Corporate and other900 3 — 903 902 — — 1,006 2 — 1,008 
Held-to-maturity debt securities
Time deposits and other
423 — — 423 397 16 10 283 — — 283 
Government and agency––non-U.S.
1,847 — — 1,847 1,842 4 1 5 — — 5 
Total debt securities$10,667 $25 $(55)$10,637 $10,531 $94 $11 $9,991 $138 $(5)$10,124 
Contractual Maturities of Available-for-sale and Held-to-maturity Debt Securities
At April 4, 2021, our debt investment portfolio consisted of debt securities issued across diverse governments, corporate and financial institutions, which are investment-grade. The contractual or estimated maturities, are as follows:
April 4, 2021December 31, 2020
Gross UnrealizedMaturities (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.
$6,209 $23 $(54)$6,178 $6,169 $9 $— $7,593 $136 $(4)$7,725 
Government and agency––U.S.
1,288 — (1)1,287 1,221 66 — 1,104 — (1)1,103 
Corporate and other900 3 — 903 902 — — 1,006 2 — 1,008 
Held-to-maturity debt securities
Time deposits and other
423 — — 423 397 16 10 283 — — 283 
Government and agency––non-U.S.
1,847 — — 1,847 1,842 4 1 5 — — 5 
Total debt securities$10,667 $25 $(55)$10,637 $10,531 $94 $11 $9,991 $138 $(5)$10,124 
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 Ended
(MILLIONS)April 4,
2021		March 29,
2020
Net (gains)/losses recognized during the period on equity securities(a)
$(401)$255 
Less: Net (gains)/losses recognized during the period on equity securities sold during the period(28)(19)
Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date(b)
$(372)$274 
(a)Reported in Other (income)/deductions––net. See Note 4.
(b)Included in net unrealized gains are observable price changes on equity securities without readily determinable fair values. Since January 1, 2018, there were cumulative impairments and downward adjustments of $87 million and upward adjustments of $61 million. Impairments, downward and upward adjustments were not significant in the first quarters of 2021 and 2020.
Schedule of Short-term Borrowings
Short-term borrowings include:
(MILLIONS)April 4,
2021		December 31, 2020
Commercial paper$416 $556 
Current portion of long-term debt, principal amount3,679 2,004 
Other short-term borrowings, principal amount(a)
260 145 
Total short-term borrowings, principal amount
4,355 2,705 
Net fair value adjustments related to hedging and purchase accounting— — 
Net unamortized discounts, premiums and debt issuance costs(3)(2)
Total Short-term borrowings, including current portion of long-term debt, carried at historical proceeds, as adjusted
$4,352 $2,703 
(a)Includes cash collateral. See Note 7F.
Schedule of 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)April 4,
2021		December 31, 2020
Total long-term debt, principal amount$34,032 $35,774 
Net fair value adjustments related to hedging and purchase accounting1,512 1,562 
Net unamortized discounts, premiums and debt issuance costs(200)(207)
Other long-term debt4 4 
Total long-term debt, carried at historical proceeds, as adjusted$35,347 $37,133 
Current portion of long-term debt, carried at historical proceeds, as adjusted (not included above)
$3,676 $2,002 
Schedule of Derivative Instruments
The following summarizes the fair value of the derivative financial instruments and notional amounts (including those reported as part of discontinued operations):
April 4, 2021December 31, 2020
Fair ValueFair Value
(MILLIONS)NotionalAssetLiabilityNotionalAssetLiability
Derivatives designated as hedging instruments:
Foreign exchange contracts(a)
$22,799 $408 $654 $24,369 $145 $1,005 
Interest rate contracts
450 26 — 1,950 135 — 
435 654 280 1,005 
Derivatives not designated as hedging instruments:
Foreign exchange contracts
$14,726 86 78 $15,063 94 95 
Total$521 $732 $373 $1,100 
(a)The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $5.1 billion as of April 4, 2021 and $5.0 billion as of December 31, 2020.
Schedule of Derivative Assets
The following summarizes the fair value of the derivative financial instruments and notional amounts (including those reported as part of discontinued operations):
April 4, 2021December 31, 2020
Fair ValueFair Value
(MILLIONS)NotionalAssetLiabilityNotionalAssetLiability
Derivatives designated as hedging instruments:
Foreign exchange contracts(a)
$22,799 $408 $654 $24,369 $145 $1,005 
Interest rate contracts
450 26 — 1,950 135 — 
435 654 280 1,005 
Derivatives not designated as hedging instruments:
Foreign exchange contracts
$14,726 86 78 $15,063 94 95 
Total$521 $732 $373 $1,100 
(a)The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $5.1 billion as of April 4, 2021 and $5.0 billion as of December 31, 2020.
Schedule of Derivative Liabilities
The following summarizes the fair value of the derivative financial instruments and notional amounts (including those reported as part of discontinued operations):
April 4, 2021December 31, 2020
Fair ValueFair Value
(MILLIONS)NotionalAssetLiabilityNotionalAssetLiability
Derivatives designated as hedging instruments:
Foreign exchange contracts(a)
$22,799 $408 $654 $24,369 $145 $1,005 
Interest rate contracts
450 26 — 1,950 135 — 
435 654 280 1,005 
Derivatives not designated as hedging instruments:
Foreign exchange contracts
$14,726 86 78 $15,063 94 95 
Total$521 $732 $373 $1,100 
(a)The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $5.1 billion as of April 4, 2021 and $5.0 billion as of December 31, 2020.
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 (including those reported as part of discontinued operations):
 
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)April 4,
2021		March 29,
2020		April 4,
2021		March 29,
2020		April 4,
2021		March 29,
2020
Three Months Ended      
Derivative Financial Instruments in Cash Flow Hedge Relationships:
      
Foreign exchange contracts(b)
$— $— $202 $(529)$(268)$(46)
Amount excluded from effectiveness testing and amortized into earnings(c)
— — 12 29 9 27 
Derivative Financial Instruments in Fair Value Hedge Relationships:
Interest rate contracts
(26)386 — — — — 
Hedged item
26 (386)— — — — 
Derivative Financial Instruments in Net Investment Hedge Relationships:
Foreign exchange contracts
— — 154 384 — — 
The portion of foreign exchange contracts excluded from the assessment of hedge effectiveness(c)
— — (1)147 29 41 
Non-Derivative Financial Instruments in Net Investment Hedge Relationships:(d)
Foreign currency short-term borrowings— — 38 8 — — 
Foreign currency long-term debt— — 56 45 — — 
Derivative Financial Instruments Not Designated as Hedges:
Foreign exchange contracts
42 (59)— — — — 
All other net(c)
— — — (1)— — 
$42 $(59)$460 $83 $(230)$23 
(a)OID = Other (income)/deductions—net, included in Other (income)/deductions—net in the condensed consolidated statements of income. COS = Cost of Sales, included in Cost of sales in the condensed consolidated statements of income. OCI = Other comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income.
(b)The amounts reclassified from OCI into COS were:
•a net loss of $45 million in the first quarter of 2021; and
•a net gain of $70 million in the first quarter of 2020.
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 loss of $20 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 22 years and relates to foreign currency debt.
(c)The amounts reclassified from OCI were reclassified into OID.
(d)Short-term borrowings and long-term debt include foreign currency borrowings which are used in net investment hedges. The short-term borrowings carrying value as of April 4, 2021 was $1.2 billion. The long-term debt carrying values as of April 4, 2021 and December 31, 2020 were $872 million and $2.1 billion, 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 for fair value hedges to our long-term debt:
April 4, 2021December 31, 2020
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$494 $21 $1,202 $2,016 $117 $1,149 
(a)Carrying amounts exclude the cumulative amount of fair value hedging adjustments.