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Financial instruments | 6 Months Ended
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Jun. 30, 2020
Financial Instruments - additional disclosure [abstract] |
Disclosure of detailed information about financial instruments [text block] | 5. Financial instruments Fair value by hierarchy The following table illustrates the three hierarchical levels for valuing financial instruments at fair value as of June 30, 2020 and December 31, 2019. For additional information on the hierarchies and other matters, please refer to the Consolidated Financial Statements in the 2019 Annual Report, published on January 29, 2020.
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total |
(USD millions) |  | Jun 30, 2020 |  | Dec 31, 2019 |  | Jun 30, 2020 |  | Dec 31, 2019 |  | Jun 30, 2020 |  | Dec 31, 2019 |  | Jun 30, 2020 |  | Dec 31, 2019 |
Marketable securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt securities |  |  |  |  |  | 24 |  | 24 |  |  |  |  |  | 24 |  | 24 |
Fund investments |  | 33 |  | 37 |  |  |  |  |  |  |  |  |  | 33 |  | 37 |
Total marketable securities |  | 33 |  | 37 |  | 24 |  | 24 |  |  |  |  |  | 57 |  | 61 |
Derivative financial instruments |  |  |  |  |  | 136 |  | 102 |  |  |  |  |  | 136 |  | 102 |
Total marketable securities and derivative financial instruments |  | 33 |  | 37 |  | 160 |  | 126 |  |  |  |  |  | 193 |  | 163 |
Long-term financial investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt and equity securities |  | 904 |  | 976 |  |  |  |  |  | 539 |  | 581 |  | 1 443 |  | 1 557 |
Fund investments |  |  |  |  |  |  |  |  |  | 235 |  | 233 |  | 235 |  | 233 |
Contingent consideration receivables |  |  |  |  |  |  |  |  |  | 444 |  | 399 |  | 444 |  | 399 |
Total long-term financial investments |  | 904 |  | 976 |  |  |  |  |  | 1 218 |  | 1 213 |  | 2 122 |  | 2 189 |
Associated companies at fair value through profit or loss |  |  |  |  |  |  |  |  |  | 175 |  | 186 |  | 175 |  | 186 |
Contingent consideration payables |  |  |  |  |  |  |  |  |  | – 1 039 |  | – 1 036 |  | – 1 039 |  | – 1 036 |
Other financial liabilities |  |  |  |  |  |  |  |  |  | – 20 |  | – 29 |  | – 20 |  | – 29 |
Derivative financial instruments |  |  |  |  |  | – 126 |  | – 185 |  |  |  |  |  | – 126 |  | – 185 |
Total financial liabilities at fair value |  |  |  |  |  | – 126 |  | – 185 |  | – 1 059 |  | – 1 065 |  | – 1 185 |  | – 1 250 |
During the first half of 2020, there were no significant transfers from one level to the other and no significant transactions associated with level 3 financial instruments. During the second quarter of 2020, there were two non-significant transfers of equity securities from level 3 to level 1 for USD 26 million due to Initial Public Offerings. The fair value of straight bonds amounted to USD 27.7 billion at June 30, 2020 (USD 23.7 billion at December 31, 2019) compared to the balance sheet value of USD 25.2 billion at June 30, 2020 (USD 22.2 billion at December 31, 2019). For all other financial assets and liabilities, the carrying amount is a reasonable approximation of the fair value. The carrying amount of financial assets included in the line total long-term financial investments of USD 2.1 billion at June 30, 2020 (USD 2.2 billion at December 31, 2019) is included in line “Financial and other non-current assets” of the consolidated balance sheets. In accordance with the consolidated foundations Alcon Inc. share divestment plans, Alcon Inc. shares with a fair value of USD 287 million were sold, or otherwise disposed of, in the first half of 2020 and the USD 16 million gain on disposal was transferred from other comprehensive income to retained earnings (second quarter : nil). The Group’s exposure to financial risks has not changed significantly during the period and there have been no major changes to the risk management department or in any risk management policies. Non-current financial debt – issuance of bonds On February 11, 2020, Novartis issued the following straight bonds:
Coupon |  | Currency |  | Nominal amount (USD millions) |  | Maturity year |  | Issuer |  | Issue price |  | Carrying value Jun 30, 2020 (USD millions) |
1.75% |  | USD |  | 1 000 |  | 2025 |  | Novartis Capital Corporation, New York, United States |  | 99.852% |  | 996 |
2.00% |  | USD |  | 1 250 |  | 2027 |  | Novartis Capital Corporation, New York, United States |  | 99.909% |  | 1 245 |
2.20% |  | USD |  | 1 500 |  | 2030 |  | Novartis Capital Corporation, New York, United States |  | 99.869% |  | 1 492 |
2.75% |  | USD |  | 1 250 |  | 2050 |  | Novartis Capital Corporation, New York, United States |  | 97.712% |  | 1 213 |

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