v3.26.1
Fair value measurements (Tables)
 3 Months Ended
Mar. 29, 2026
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 first quarters ended March 29, 2026 and March 30, 2025, net of tax:


March 29, 2026March 30, 2025
(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$———36————188—
    Derivatives designated as hedging instruments———(36)————(188)—
Gain (Loss) on net investment hedging relationship:
Cross currency interest rate swaps contracts:
   Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing———47————49—
   Amount of gain or (loss) recognized in AOCI———47————49—
Gain (Loss) on cash flow hedging relationship:
Forward foreign exchange contracts:
   Amount of gain or (loss) reclassified from AOCI into income 173(5)—(2)(1)101——
   Amount of gain or (loss) recognized in AOCI (7)(195)37—253105(36)—(11)
Cross currency interest rate swaps contracts:
   Amount of gain or (loss) reclassified from AOCI into income———83————83—
   Amount of gain or (loss) recognized in AOCI$———16————566—
The following table is the effect of net investment hedges for the fiscal first quarters ended in 2026 and 2025:
Gain/(Loss)
Recognized In
Accumulated OCI
Location of Gain or (Loss)
Reclassified from Accumulated OCI Into Income		Gain/(Loss) Reclassified From
Accumulated OCI
Into Income
(Dollars in Millions)March 29, 2026March 30, 2025March 29, 2026March 30, 2025
Debt
$213
(316)
Interest (income) expense
—
—
Cross Currency interest rate swaps
$217
840
Interest (income) expense
—
—
Schedule of Derivative Financial Instruments and Classification on Consolidated Balance Sheet
As of March 29, 2026, and December 28, 2025, 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 includedCarrying Amount of the Hedged Liability
Cumulative Amount of Fair Value
Hedging Gain/ (Loss) Included in the
Carrying Amount of the Hedged Liability
(Dollars in Millions)March 29, 2026December 28, 2025March 29, 2026December 28, 2025
Long-term Debt$7,3608,318(647)(694)
Schedule of Effect of Derivatives not Designated as Hedging Instruments
The following table is the effect of derivatives not designated as hedging instruments for the fiscal first quarters ended 2026 and 2025:
Gain/(Loss)
Recognized In
Income on Derivative
(Dollars in Millions)Location of
Gain /(Loss)
Recognized in
Income on Derivative		Fiscal First Quarter Ended
Derivatives Not Designated as Hedging InstrumentsMarch 29, 2026March 30, 2025
Foreign Exchange ContractsOther (income) expense$(65)62
Summary of Activity Related to Equity Investments
The following table is a summary of the activity related to equity investments:
December 28, 2025March 29, 2026
(Dollars in Millions)Carrying Value
Changes in Fair Value Reflected in Net Income (1)
(Sales)/ Purchases/Other (2)
Carrying ValueNon Current Other Assets
Equity Investments with readily determinable value$66543(5)703703
Equity Investments without readily determinable value$91046(68)888888
(1)Recorded in Other (income)/expense, net
(2)Other includes impact of currency
Financial Assets and Liabilities at Fair Value
The Company’s significant financial assets and liabilities measured at fair value as of March 29, 2026 and December 28, 2025 were as follows:
 March 29, 2026December 28, 2025
(Dollars in Millions)Level 1Level 2Level 3Total
Total(1)
Derivatives designated as hedging instruments:     
Assets:     
Forward foreign exchange contracts $—549—549686
Interest rate contracts(2)
—610—610589
Total —1,159—1,1591,275
Liabilities:     
Forward foreign exchange contracts —418—418413
Interest rate contracts(2)
—5,386—5,3865,848
Total —5,804—5,8046,261
Derivatives not designated as hedging instruments:     
Assets:     
Forward foreign exchange contracts —47—4738
Liabilities:     
Forward foreign exchange contracts —49—4946
Other Investments:
Equity investments(3)
703——703665
Debt securities(4)
—6,675—6,6752,854
Other Liabilities:
Contingent consideration(5)
$——754754753
Gross to Net Derivative ReconciliationMarch 29, 2026December 28, 2025
(Dollars in Millions)
Total Gross Assets$1,2061,313
Credit Support Agreement (CSA)(1,094)(1,308)
Total Net Asset1125
Total Gross Liabilities5,8536,307
Credit Support Agreement (CSA)(5,829)(5,903)
Total Net Liabilities$24404
Summarized information about changes in liabilities for contingent consideration for the fiscal first quarters ended March 29, 2026 and March 30, 2025 is as follows:
March 29, 2026March 30, 2025
(Dollars in Millions)
Beginning Balance$7531,217
Changes in estimated fair value(6)
114
Additions——
Payments——
Ending Balance$7541,231
(1)2025 assets and liabilities are all classified as Level 2 with the exception of equity investments of $665 million, which are classified as Level 1 and contingent consideration of $753 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 within cash equivalents and current marketable securities.
(5)Classified as non-current other liabilities.
(6)Ongoing fair value adjustment amounts are primarily recorded in Research and Development expense.
Marketable Securities
The Company's cash, cash equivalents and current marketable securities as of March 29, 2026 comprised:
(Dollars in Millions)
Carrying
Amount
Estimated
Fair Value
Cash & Cash
Equivalents
Current
Marketable
Securities
Cash
$3,310
3,310
3,310
—
U.S. reverse repurchase agreements
6,253
6,253
6,253
—
Money market funds
5,089
5,089
5,089
—
Time deposits(1)
724
724
724
—
   Subtotal
15,376
15,376
15,376
—
​
U.S. Gov’t securities
6,225
6,225
6,207
18
Other sovereign securities
234
234
76
158
Corporate and other debt securities
216
216
29
187
   Subtotal available for sale debt(2)
$6,675
6,675
6,312
363
Total cash, cash equivalents and current marketable securities
$22,051
22,051
21,688
363
(1)Held to maturity investments are reported at amortized cost and gains or losses are reported in earnings.
(2)Available for sale debt securities are reported at fair value with unrealized gains and losses reported net of taxes in other comprehensive income.
Schedule of Available for Sale Securities Maturities
The contractual maturities of the available for sale securities as of March 29, 2026 are as follows:
(Dollars in Millions)Cost BasisFair Value
Due within one year
$6,659
6,659
Due after one year through five years
16
16
Due after five years through ten years
—
—
Total debt securities
$6,675
6,675
Financial Liabilities not Measured at Fair Value
Financial instruments not measured at fair value
The following financial liabilities are held at carrying amount on the consolidated balance sheet as of March 29, 2026:
(Dollars in Millions)
Carrying
Amount
Estimated
Fair Value
Financial Liabilities  
Current Debt$17,460
17,455
Non-Current Debt  
0.95% Notes due 2027
1,4991,439
2.90% Notes due 2028
1,4991,470
1.150% Notes due 2028 (750MM Euro 1.1541)
863826
4.55% Notes due 2028
749758
4.80% Notes due 2029
1,1471,174
6.95% Notes due 2029
299327
2.70% Notes due 2029 (600MM Euro 1.1541)
692685
1.30% Notes due 2030
1,7021,544
4.70% Notes due 2030
9961,018
4.90% Notes due 2031
1,1461,180
3.20% Notes due 2032 (700MM Euro 1.1541)
805798
4.85% Notes due 2032
1,2431,275
4.95% Notes due 2033
499518
4.375% Notes due 2033
853845
3.050% Notes due 2033 (700MM Euro 1.1541)
806786
4.95% Notes due 2034

847882
1.650% Notes due 2035 (1.5B Euro 1.1541)
1,7221,463
5.00% Notes due 2035
1,2441,275
3.35% Notes due 2036 (800MM Euro 1.1541)

919892
3.587% Notes due 2036
925903
5.95% Notes due 2037
9951,085
3.625% Notes due 2037
1,4141,333
3.350% Notes due 2037 (1.0B Euro 1.1541)
1,1511,100
3.40% Notes due 2038
994855
5.85% Notes due 2038
697754
4.50% Notes due 2040
542512
2.10% Notes due 2040
902687
4.85% Notes due 2041
298292
4.50% Notes due 2043
497453
3.55% Notes due 2044 (1.0B Euro 1.1541)
1,1441,057
3.60% Notes due 2045 (700MM Euro 1.1541)
802741
3.73% Notes due 2046
1,9801,565
3.75% Notes due 2047
877778
3.50% Notes due 2048
744555
2.25% Notes due 2050
864572
5.25% Notes due 2054

843831
3.70% Notes due 2055 (1.0B Euro 1.1541)
1,1481,027
2.45% Notes due 2060
1,118660
Other6277
Total Non-Current Debt$37,52734,992