XML 30 R18.htm IDEA: XBRL DOCUMENT v3.20.2
Financial Instruments (Tables)
 6 Months Ended
Jun. 28, 2020
Fair Value Of Financial Instruments Measured On A Recurring Basis [Line Items]  
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents the financial assets measured at fair value using a market approach on a recurring basis by balance sheet categories and fair value hierarchy level as defined in
Note 2B
:
 
 
 
 
 
June 28, 2020
 
 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
(millions of dollars)
 
Total
 
 
Level 2
 
 
Total
 
 
Level 2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial assets measured at fair value on a recurring basis:
 
 
 
 
Short-term investments
 
 
 
 
Classified as equity securities with readily determinable fair values:
 
 
 
 
    Money market funds
(a)
 
 $
 11,411.6 
 
 
 $
 11,411.6 
 
 
 $
— 
 
 
 $
— 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total short-term investments
 
 $    
 11,411.6 
 
 
 $    
 11,411.6 
 
 
 $
        — 
 
 
 $
        — 
 
 
 
 
 
(a)
As of June 28, 2020, $11.4 billion of proceeds from the debt issuances completed in June 2020 (see
Note 5B
) are invested in money market funds and are included in
Restricted short-term investments
in the condensed consolidated balance sheet. The money market funds are primarily invested in U.S. Treasury and government debt with readily determinable fair values.
Fair Value of Financial Assets and Liabilities Not Measured on a Recurring Basis
The following table presents the financial liabilities not measured at fair value on a recurring basis, including the carrying values and estimated fair values using a market approach:
 
 
  
    June 28, 2020     December 31, 2019  
 
  
 
 
    
 
 
  
(millions of dollars)   Carrying
Value		     Estimated Fair Value     Carrying
Value		     Estimated Fair Value  
 
  
 
 
    
 
 
    
 
 
    
 
 
  
          Total     Level 2           Total      Level 2  
 
    
 
 
    
 
 
      
 
 
     
 
 
  
Financial Liabilities:
             
Long-term debt
   $   11,385.2      $     12,848.2      $     12,848.2      $         —      $         —       $         —   
 
  
 
  
Long-Term Debt The following table provides information about the senior unsecured notes issued in June 2020:
            Principal  
(millions of dollars/euros)
       Maturity Date       Issue
    Currency    		   As of 
June 28, 2020 		  
Upjohn Inc.
(a)
  
 
 
  
1.125% U.S. dollar notes
   June 22, 2022   U.S. dollar    $ 1,000   
1.650% U.S. dollar notes
   June 22, 2025   U.S. dollar     750   
2.300% U.S. dollar notes
   June 22, 2027   U.S. dollar     750   
2.700% U.S. dollar notes
   June 22, 2030   U.S. dollar     1,450   
3.850% U.S. dollar notes
   June 22, 2040   U.S. dollar     1,500   
4.000% U.S. dollar notes
   June 22, 2050   U.S. dollar     2,000   
 
 
 
  
Total U.S. dollar notes issued in the second quarter of 2020
    $                 7,450   
 
 
 
  
Upjohn Finance B.V.
(a)
  
0.816% Euro notes
   June 23, 2022   Euro    € 750   
1.023% Euro notes
   June 23, 2024   Euro     750   
1.362% Euro notes
   June 23, 2027   Euro     850   
1.908% Euro notes
   June 23, 2032   Euro     1,250   
 
 
 
  
    Total Euro notes issued in the second quarter of 2020
    € 3,600   
 
  
(a)
The notes may be redeemed by the Company at any time, in whole, or in part, at varying redemption prices plus accrued and unpaid interest. The weighted-average effective interest rates at issuance were 2.95% for the $7.45 billion notes and 1.37% for the €3.60 billion notes. If the Transaction does not close on or prior to February 1, 2021, or if, prior to such date, Upjohn Inc. and Mylan notify the trustee for the U.S. dollar notes or euro notes, as applicable, that (i) the business combination agreement entered into by Pfizer, the Company, Mylan and certain of their affiliates to combine the Upjohn Business with Mylan is terminated, or (ii) the Transaction will not otherwise be pursued, the notes must be redeemed at redemption prices equal to 101% of their respective principal amounts, plus accrued and unpaid interest.
Unsecured Debt [Member]  
Fair Value Of Financial Instruments Measured On A Recurring Basis [Line Items]  
Long-Term Debt
The following table provides the components of the Company’s senior unsecured long-term debt, including the weighted-average annual stated interest rate by maturity:
 
(millions of dollars)
  
As of
    June 28, 2020
 
Notes due 2022 (0.984%)
  
$
1,841.6
 
Notes due 2024 (1.023%)
  
 
841.6
 
Notes due 2025 (1.650%)
  
 
750.0
 
Notes due 2027 (1.775%)
  
 
1,703.8
 
Notes due 2030 (2.700%)
  
 
1,450.0
 
Notes due 2032 (1.908%)
  
 
1,402.6
 
Notes due 2040 (3.850%)
  
 
1,500.0
 
Notes due 2050 (4.000%)
  
 
2,000.0
 
  
 
 
 
Total long-term debt, principal amount
  
 
11,489.5
 
Net unamortized discounts and debt issuance costs
  
 
(104.3
) 
  
 
 
 
Total long-term debt, carried at historical proceeds, as adjusted
  
$
11,385.2