JOHNSON & JOHNSON, 10-K filed on 2/17/2022
Annual Report
v3.22.0.1
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Jan. 02, 2022
Feb. 10, 2022
Jul. 04, 2021
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Jan. 02, 2022    
Document Transition Report false    
Entity File Number 1-3215    
Entity Registrant Name JOHNSON & JOHNSON    
Entity Incorporation, State or Country Code NJ    
Entity Tax Identification Number 22-1024240    
Entity Address, Address Line One One Johnson & Johnson Plaza    
Entity Address, City or Town New Brunswick    
Entity Address, State or Province NJ    
Entity Address, Postal Zip Code 08933    
City Area Code 732    
Local Phone Number 524-0400    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Emerging Growth Company false    
Entity Small Business false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 445
Entity Common Stock, Shares Outstanding   2,629,268,158  
Entity Central Index Key 0000200406    
Current Fiscal Year End Date --01-02    
Document Fiscal Year Focus 2021    
Document Fiscal Period Focus FY    
Amendment Flag false    
Common Stock, Par Value $1.00      
Document Information [Line Items]      
Title of 12(b) Security Common Stock, Par Value $1.00    
Trading Symbol JNJ    
Security Exchange Name NYSE    
0.650% Notes Due May 2024      
Document Information [Line Items]      
Title of 12(b) Security 0.650% Notes Due May 2024    
Trading Symbol JNJ24C    
Security Exchange Name NYSE    
5.50% Notes Due November 2024      
Document Information [Line Items]      
Title of 12(b) Security 5.50% Notes Due November 2024    
Trading Symbol JNJ24BP    
Security Exchange Name NYSE    
1.150% Notes Due November 2028      
Document Information [Line Items]      
Title of 12(b) Security 1.150% Notes Due November 2028    
Trading Symbol JNJ28    
Security Exchange Name NYSE    
1.650% Notes Due May 2035      
Document Information [Line Items]      
Title of 12(b) Security 1.650% Notes Due May 2035    
Trading Symbol JNJ35    
Security Exchange Name NYSE    
v3.22.0.1
Audit Information
 12 Months Ended
Jan. 02, 2022
Auditor Information [Abstract]  
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Florham Park, New Jersey
Auditor Firm ID 238
v3.22.0.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Jan. 02, 2022
Jan. 03, 2021
Current assets:    
Cash and cash equivalents (Notes 1 and 2) $ 14,487 $ 13,985
Marketable securities (Notes 1 and 2) 17,121 11,200
Accounts receivable trade, less allowances for doubtful accounts $230 (2020, $293) 15,283 13,576
Inventories (Notes 1 and 3) 10,387 9,344
Prepaid expenses and other receivables 3,701 3,132
Total current assets 60,979 51,237
Property, plant and equipment, net (Notes 1 and 4) 18,962 18,766
Intangible assets, net (Notes 1 and 5) 46,392 53,402
Goodwill (Notes 1 and 5) 35,246 36,393
Deferred taxes on income (Note 8) 10,223 8,534
Other assets 10,216 6,562
Total assets 182,018 174,894
Current liabilities    
Loans and notes payable (Note 7) 3,766 2,631
Accounts payable 11,055 9,505
Accrued liabilities 13,612 13,968
Accrued rebates, returns and promotions 12,095 11,513
Accrued compensation and employee related obligations 3,586 3,484
Accrued taxes on income (Note 8) 1,112 1,392
Total current liabilities 45,226 42,493
Long-term debt (Note 7) 29,985 32,635
Deferred taxes on income (Note 8) 7,487 7,214
Employee related obligations (Notes 9 and 10) 8,898 10,771
Long-term taxes payable (Note 1) 5,713 6,559
Other liabilities 10,686 11,944
Total liabilities 107,995 111,616
Commitments and Contingencies (Note 19)
Shareholders’ equity    
Preferred stock — without par value (authorized and unissued 2,000,000 shares) 0 0
Common stock — par value $1.00 per share (Note 12) (authorized 4,320,000,000 shares; issued 3,119,843,000 shares) 3,120 3,120
Accumulated other comprehensive income (loss) (Note 13) (13,058) (15,242)
Retained earnings 123,060 113,890
Stockholders' Equity before Treasury Stock 113,122 101,768
Less: common stock held in treasury, at cost (Note 12) (490,878,000 shares and 487,331,000 shares) 39,099 38,490
Total shareholders’ equity 74,023 63,278
Total liabilities and shareholders’ equity $ 182,018 $ 174,894
v3.22.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Jan. 02, 2022
Jan. 03, 2021
Current assets:    
Allowances for doubtful accounts $ 230 $ 293
Shareholders’ equity    
Preferred stock, shares authorized (in shares) 2,000,000 2,000,000
Common stock, par value per share (in dollars per share) $ 1.00 $ 1.00
Common stock, shares authorized (in shares) 4,320,000,000 4,320,000,000
Common stock, shares issued (in shares) 3,119,843,000 3,119,843,000
Treasury stock, shares 490,878,000 487,331,000
v3.22.0.1
Consolidated Statements of Earnings - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Income Statement [Abstract]      
Sales to customers $ 93,775 $ 82,584 $ 82,059
Cost of products sold 29,855 28,427 27,556
Gross profit 63,920 54,157 54,503
Selling, marketing and administrative expenses 24,659 22,084 22,178
Research and development expense 14,714 12,159 11,355
In-process research and development (Note 5) 900 181 890
Interest income (53) (111) (357)
Interest expense, net of portion capitalized (Note 4) 183 201 318
Other (income) expense, net 489 2,899 2,525
Restructuring (Note 20) 252 247 266
Earnings before provision for taxes on income 22,776 16,497 17,328
Provision for taxes on income (Note 8) 1,898 1,783 2,209
Net earnings $ 20,878 $ 14,714 $ 15,119
Net earnings per share (Notes 1 and 15)      
Basic (in dollars per share) $ 7.93 $ 5.59 $ 5.72
Diluted (in dollars per share) $ 7.81 $ 5.51 $ 5.63
Average shares outstanding (Notes 1 and 15)      
Basic (in shares) 2,632.1 2,632.8 2,645.1
Diluted (in shares) 2,674.0 2,670.7 2,684.3
v3.22.0.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Statement of Comprehensive Income [Abstract]      
Net earnings $ 20,878 $ 14,714 $ 15,119
Other comprehensive income (loss), net of tax      
Foreign currency translation (1,079) (233) 164
Securities:      
Unrealized holding gain (loss) arising during period (4) 1 0
Reclassifications to earnings 0 0 0
Net change (4) 1 0
Employee benefit plans:      
Prior service credit (cost), net of amortization (169) 1,298 (18)
Gain (loss), net of amortization 4,318 (1,135) (714)
Effect of exchange rates 106 (229) (1)
Net change 4,255 (66) (733)
Derivatives & hedges:      
Unrealized gain (loss) arising during period (199) 1,000 (107)
Reclassifications to earnings (789) (53) 7
Net change (988) 947 (100)
Other comprehensive income (loss) 2,184 649 (669)
Comprehensive income $ 23,062 $ 15,363 $ 14,450
v3.22.0.1
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Statement of Comprehensive Income [Abstract]      
Foreign currency translation $ (346) $ (536) $ 19
Securities (1)    
Employee benefits 1,198 (21) (222)
Derivatives & hedges $ (263) $ 252 $ (27)
v3.22.0.1
Consolidated Statements of Equity - USD ($)
$ in Millions
Total
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Common Stock Issued Amount
Treasury Stock Amount
Beginning Balance at Dec. 30, 2018 $ 59,752 $ 106,216 $ (15,222) $ 3,120 $ (34,362)
Net earnings 15,119 15,119      
Cash dividends paid (9,917) (9,917)      
Employee compensation and stock option plans 1,933 (758)     2,691
Repurchase of common stock (6,746)       (6,746)
Other (1) (1)      
Other comprehensive income (loss), net of tax (669)   (669)    
Ending Balance at Dec. 29, 2019 59,471 110,659 (15,891) 3,120 (38,417)
Net earnings 14,714 14,714      
Cash dividends paid (10,481) (10,481)      
Employee compensation and stock option plans 2,217 (931)     3,148
Repurchase of common stock (3,221)       (3,221)
Other (71) (71)      
Other comprehensive income (loss), net of tax 649   649    
Ending Balance at Jan. 03, 2021 63,278 113,890 (15,242) 3,120 (38,490)
Net earnings 20,878 20,878      
Cash dividends paid (11,032) (11,032)      
Employee compensation and stock option plans 2,171 (676)     2,847
Repurchase of common stock (3,456)       (3,456)
Other comprehensive income (loss), net of tax 2,184   2,184    
Ending Balance at Jan. 02, 2022 $ 74,023 $ 123,060 $ (13,058) $ 3,120 $ (39,099)
v3.22.0.1
Consolidated Statements of Equity (Parenthetical) - $ / shares
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Statement of Stockholders' Equity [Abstract]      
Cash dividends paid (in dollars per share) $ 4.19 $ 3.98 $ 3.75
v3.22.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Cash flows from operating activities      
Net earnings $ 20,878 $ 14,714 $ 15,119
Adjustments to reconcile net earnings to cash flows from operating activities:      
Depreciation and amortization of property and intangibles 7,390 7,231 7,009
Stock based compensation 1,135 1,005 977
Asset write-downs 989 233 1,096
Contingent consideration reversal 0 (1,148) 0
Net gain on sale of assets/businesses (617) (111) (2,154)
Deferred tax provision (2,079) (1,141) (2,476)
Credit losses and accounts receivable allowances (48) 63 (20)
Changes in assets and liabilities, net of effects from acquisitions and divestitures:      
(Increase)/Decrease in accounts receivable (2,402) 774 (289)
Increase in inventories (1,248) (265) (277)
Increase in accounts payable and accrued liabilities 2,437 5,141 4,060
Increase in other current and non-current assets (1,964) (3,704) (1,054)
(Decrease)/Increase in other current and non-current liabilities (1,061) 744 1,425
Net cash flows from operating activities 23,410 23,536 23,416
Cash flows from investing activities      
Additions to property, plant and equipment (3,652) (3,347) (3,498)
Proceeds from the disposal of assets/businesses, net 711 305 3,265
Acquisitions, net of cash acquired (Note 18) (60) (7,323) (5,810)
Purchases of investments (30,394) (21,089) (3,920)
Sales of investments 25,006 12,137 3,387
Credit support agreements activity, net 214 (987) 338
Other (primarily licenses and milestones) (508) (521) 44
Net cash used by investing activities (8,683) (20,825) (6,194)
Cash flows from financing activities      
Dividends to shareholders (11,032) (10,481) (9,917)
Repurchase of common stock (3,456) (3,221) (6,746)
Proceeds from short-term debt 1,997 3,391 39
Repayment of short-term debt (1,190) (2,663) (100)
Proceeds from long-term debt, net of issuance costs 5 7,431 3
Repayment of long-term debt (1,802) (1,064) (2,823)
Proceeds from the exercise of stock options/employee withholding tax on stock awards, net 1,036 1,114 954
Credit support agreements activity, net 281 (333) 100
Other 114 (294) 475
Net cash used by financing activities (14,047) (6,120) (18,015)
Effect of exchange rate changes on cash and cash equivalents (178) 89 (9)
Increase/(Decrease) in cash and cash equivalents 502 (3,320) (802)
Cash and cash equivalents, beginning of year (Note 1) 13,985 17,305 18,107
Cash and cash equivalents, end of year (Note 1) 14,487 13,985 17,305
Cash paid during the year for:      
Interest 990 904 995
Interest, net of amount capitalized 941 841 925
Income taxes 4,768 4,619 4,191
Supplemental schedule of non-cash investing and financing activities      
Treasury stock issued for employee compensation and stock option plans, net of cash proceeds/ employee withholding tax on stock awards 1,811 1,937 1,736
Conversion of debt 0 27 1
Acquisitions      
Fair value of assets acquired 61 7,755 7,228
Fair value of liabilities assumed and noncontrolling interests (1) (432) (1,418)
Net cash paid for acquisitions (Note 18) $ 60 $ 7,323 $ 5,810
v3.22.0.1
Summary of Significant Accounting Policies
 12 Months Ended
Jan. 02, 2022
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Principles of Consolidation
The consolidated financial statements include the accounts of Johnson & Johnson and its subsidiaries (the Company). Intercompany accounts and transactions are eliminated. Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures.
Description of the Company and Business Segments
The Company has approximately 141,700 employees worldwide engaged in the research and development, manufacture and sale of a broad range of products in the healthcare field. The Company conducts business in virtually all countries of the world and its primary focus is on products related to human health and well-being.
The Company is organized into three business segments: Consumer Health, Pharmaceutical and Medical Devices. The Consumer Health segment includes a broad range of products used in the Baby Care, Oral Care, Skin Health/Beauty, Over-the-Counter pharmaceutical, Women’s Health and Wound Care markets. These products are marketed to the general public and sold online (eCommerce) and to retail outlets and distributors throughout the world. The Pharmaceutical segment is focused on six therapeutic areas, including Immunology, Infectious diseases, Neuroscience, Oncology, Pulmonary Hypertension, and Cardiovascular and Metabolic diseases. Products in this segment are distributed directly to retailers, wholesalers, distributors, hospitals and healthcare professionals for prescription use. The Medical Devices segment includes a broad range of products used in the Orthopaedic, Surgery, Interventional Solutions (cardiovascular and neurovascular) and Vision fields. These products are distributed to wholesalers, hospitals and retailers, and used principally in the professional fields by physicians, nurses, hospitals, eye care professionals and clinics.
In November 2021, the Company announced its intention to separate the Company’s Consumer Health business, with the intention to create a new, publicly traded company. The Company is targeting completion of the planned separation in 18 to 24 months after initial announcement.

New Accounting Standards
Recently Adopted Accounting Standards

There were no new material accounting standards adopted in fiscal 2021.

Recently Issued Accounting Standards
Not Adopted as of January 2, 2022
The Company assesses the adoption impacts of recently issued accounting standards by the Financial Accounting Standards Board on the Company's financial statements as well as material updates to previous assessments, if any, from the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2021. There were no new material accounting standards issued in fiscal 2021 that impacted the Company.

ASU 2021-01: Reference Rate Reform
In mid- 2017, the Financial Conduct Authority (FCA) announced that it will no longer require banks to submit rates for the London Interbank Offered Rate (LIBOR) after 2021 hence market participants should work to transition to alternative reference rates (Reference Rate Reform) and should not rely on LIBOR being available after the end of 2021. Reference rate reform is the term used to refer to the efforts that have been undertaken by regulators and other market participants to introduce new reference rates that are based on a larger and more liquid population of observable transactions. The Company evaluated the implications of reference rate reform and applicable financial reporting guidance in ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting on its key financial and commercial contracts that referenced LIBOR including any hedging relationships. Most contracts reviewed will mature prior to the termination of LIBOR or will be modified to apply a new reference rate (primarily the Secured Overnight Financing Rate “SOFR” where applicable). The company also applied available practical expedients under ASC 848 to in scope financial and commercial contracts that previously referenced LIBOR when applicable. As a result, the Company's implementation of any reference rate reform provisions to commercial and financial contracts did not result in any material change for the Company.
Cash Equivalents
The Company classifies all highly liquid investments with stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months from the date of purchase as current marketable securities. The Company has a policy of making investments only with commercial institutions that have
at least an investment grade credit rating. The Company invests its cash primarily in government securities and obligations, corporate debt securities, money market funds and reverse repurchase agreements (RRAs).
RRAs are collateralized by deposits in the form of Government Securities and Obligations for an amount not less than 102% of their value. The Company does not record an asset or liability as the Company is not permitted to sell or repledge the associated collateral. The Company has a policy that the collateral has at least an A (or equivalent) credit rating. The Company utilizes a third party custodian to manage the exchange of funds and ensure that collateral received is maintained at 102% of the value of the RRAs on a daily basis. RRAs with stated maturities of greater than three months from the date of purchase are classified as marketable securities.
Investments
Investments classified as held to maturity investments are reported at amortized cost and realized gains or losses are reported in earnings. Investments classified as available-for-sale debt securities are carried at estimated fair value with unrealized gains and losses recorded as a component of accumulated other comprehensive income. Available-for-sale securities available for current operations are classified as current assets otherwise, they are classified as long term. Management determines the appropriate classification of its investment in debt and equity securities at the time of purchase and re-evaluates such determination at each balance sheet date. The Company reviews its investments for impairment and adjusts these investments to fair value through earnings, as required. 
Property, Plant and Equipment and Depreciation
Property, plant and equipment are stated at cost. The Company utilizes the straight-line method of depreciation over the estimated useful lives of the assets:
Building and building equipment
20 - 30 years
Land and leasehold improvements
10 - 20 years
Machinery and equipment
2 - 13 years

The Company capitalizes certain computer software and development costs, included in machinery and equipment, when incurred in connection with developing or obtaining computer software for internal use. Capitalized software costs are amortized over the estimated useful lives of the software, which generally range from 3 to 8 years.
The Company reviews long-lived assets to assess recoverability using undiscounted cash flows. When certain events or changes in operating or economic conditions occur, an impairment assessment may be performed on the recoverability of the carrying value of these assets. If the asset is determined to be impaired, the loss is measured based on the difference between the asset’s fair value and its carrying value. If quoted market prices are not available, the Company will estimate fair value using a discounted value of estimated future cash flows.
Revenue Recognition
The Company recognizes revenue from product sales when obligations under the terms of a contract with the customer are satisfied; generally, this occurs with the transfer of control of the goods to customers. The Company's global payment terms are typically between 30 to 90 days. Provisions for certain rebates, sales incentives, trade promotions, coupons, product returns, discounts to customers and governmental clawback provisions are accounted for as variable consideration and recorded as a reduction in sales. The liability is recognized within Accrued Rebates, Returns, and Promotions on the consolidated balance sheet.
Product discounts granted are based on the terms of arrangements with direct, indirect and other market participants, as well as market conditions, including consideration of competitor pricing. Rebates are estimated based on contractual terms, historical experience, patient outcomes, trend analysis and projected market conditions in the various markets served. A significant portion of the liability related to rebates is from the sale of the Company's pharmaceutical products within the U.S., primarily the Managed Care, Medicare and Medicaid programs, which amounted to $7.7 billion and $7.2 billion as of January 2, 2022 and January 3, 2021, respectively. The Company evaluates market conditions for products or groups of products primarily through the analysis of wholesaler and other third-party sell-through and market research data, as well as internally generated information.
Sales returns are estimated and recorded based on historical sales and returns information. Products that exhibit unusual sales or return patterns due to dating, competition or other marketing matters are specifically investigated and analyzed as part of the accounting for sales return accruals.
Sales returns allowances represent a reserve for products that may be returned due to expiration, destruction in the field, or in specific areas, product recall. The sales returns reserve is based on historical return trends by product and by market as a percent to gross sales. In accordance with the Company’s accounting policies, the Company generally issues credit to customers for returned goods. The Company’s sales returns reserves are accounted for in accordance with the U.S. GAAP guidance for revenue recognition when right of return exists. Sales returns reserves are recorded at full sales value. Sales returns in the Consumer Health and Pharmaceutical segments are almost exclusively not resalable. Sales returns for certain franchises in the
Medical Devices segment are typically resalable but are not material. The Company infrequently exchanges products from inventory for returned products. The sales returns reserve for the total Company has been approximately 1.0% of annual net trade sales during each of the fiscal years 2021, 2020 and 2019.
Promotional programs, such as product listing allowances and cooperative advertising arrangements, are recorded in the same period as related sales. Continuing promotional programs include coupons and volume-based sales incentive programs. The redemption cost of consumer coupons is based on historical redemption experience by product and value. Volume-based incentive programs are based on the estimated sales volumes for the incentive period and are recorded as products are sold. These arrangements are evaluated to determine the appropriate amounts to be deferred or recorded as a reduction of revenue. The Company also earns profit-share payments through collaborative arrangements for certain products, which are included in sales to customers. For all years presented, profit-share payments were less than 3.0% of the total revenues and are included in sales to customers.
See Note 17 to the Consolidated Financial Statements for further disaggregation of revenue.
Shipping and Handling
Shipping and handling costs incurred were $1.1 billion, $1.0 billion and $1.0 billion in fiscal years 2021, 2020 and 2019, respectively, and are included in selling, marketing and administrative expense. The amount of revenue received for shipping and handling is less than 0.5% of sales to customers for all periods presented.
Inventories
Inventories are stated at the lower of cost or net realizable value determined by the first-in, first-out method.
Intangible Assets and Goodwill
The authoritative literature on U.S. GAAP requires that goodwill and intangible assets with indefinite lives be assessed annually for impairment. The Company completed its annual impairment test for 2021 in the fiscal fourth quarter. Future impairment tests will be performed annually in the fiscal fourth quarter, or sooner if warranted. Purchased in-process research and development is accounted for as an indefinite lived intangible asset until the underlying project is completed, at which point the intangible asset will be accounted for as a definite lived intangible asset, or abandoned, at which point the intangible asset will be written off or partially impaired.
Intangible assets that have finite useful lives continue to be amortized over their useful lives, and are reviewed for impairment when warranted by economic conditions. See Note 5 for further details on Intangible Assets and Goodwill.
Financial Instruments
As required by U.S. GAAP, all derivative instruments are recorded on the balance sheet at fair value. Fair value is the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement determined using assumptions that market participants would use in pricing an asset or liability. The authoritative literature establishes a three-level hierarchy to prioritize the inputs used in measuring fair value, with Level 1 having the highest priority and Level 3 having the lowest. Changes in the fair value of derivatives are recorded each period in current earnings or other comprehensive income, depending on whether the derivative is designated as part of a hedge transaction, and if so, the type of hedge transaction.
The Company documents all relationships between hedged items and derivatives. The overall risk management strategy includes reasons for undertaking hedge transactions and entering into derivatives. The objectives of this strategy are: (1) minimize foreign currency exposure’s impact on the Company’s financial performance; (2) protect the Company’s cash flow from adverse movements in foreign exchange rates; (3) ensure the appropriateness of financial instruments; and (4) manage the enterprise risk associated with financial institutions. See Note 6 for additional information on Financial Instruments.

Leases
The Company determines whether an arrangement is a lease at contract inception by establishing if the contract conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Right of Use (ROU) Assets and Lease Liabilities for operating leases are included in Other assets, Accrued liabilities, and Other liabilities on the consolidated balance sheet. The ROU Assets represent the right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. Commitments under finance leases are not significant, and are included in Property, plant and equipment, Loans and notes payable, and Long-term debt on the consolidated balance sheet.
ROU Assets and Lease Liabilities are recognized at the lease commencement date based on the present value of all minimum lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments, when the implicit rate is not readily determinable. Lease terms may include options to extend or terminate the lease. These options are included in the lease term when it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term. The Company has elected the following policy elections on adoption: use of portfolio approach
on leases of assets under master service agreements, exclusion of short term leases on the balance sheet, and not separating lease and non-lease components.
The Company primarily has operating lease for space, vehicles, manufacturing equipment and data processing equipment. The ROU asset pertaining to operating leases was $0.9 billion and $1.0 billion in 2021 and 2020, respectively. The lease liability was $1.0 billion and $1.1 billion in 2021and 2020, respectively. The operating lease costs were $0.3 billion, $0.3 billion and $0.3 billion in 2021, 2020 and 2019, respectively. Cash paid for amounts included in the measurement of lease liabilities were $0.3 billion, $0.3 billion and $0.3 billion in 2021, 2020 and 2019, respectively.
Product Liability
Accruals for product liability claims are recorded, on an undiscounted basis, when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on existing information and actuarially determined estimates where applicable. The accruals are adjusted periodically as additional information becomes available. The Company accrues an estimate of the legal defense costs needed to defend each matter when those costs are probable and can be reasonably estimated. To the extent adverse verdicts have been rendered against the Company, the Company does not record an accrual until a loss is determined to be probable and can be reasonably estimated.
The Company has self insurance through a wholly-owned captive insurance company. In addition to accruals in the self insurance program, claims that exceed the insurance coverage are accrued when losses are probable and amounts can be reasonably estimated.
Research and Development
Research and development expenses are expensed as incurred in accordance with ASC 730, Research and Development. Upfront and milestone payments made to third parties in connection with research and development collaborations are expensed as incurred up to the point of regulatory approval. Payments made to third parties subsequent to regulatory approval are capitalized and amortized over the remaining useful life of the related product. Amounts capitalized for such payments are included in other intangibles, net of accumulated amortization.
The Company enters into collaborative arrangements, typically with other pharmaceutical or biotechnology companies, to develop and commercialize drug candidates or intellectual property. These arrangements typically involve two (or more) parties who are active participants in the collaboration and are exposed to significant risks and rewards dependent on the commercial success of the activities. These collaborations usually involve various activities by one or more parties, including research and development, marketing and selling and distribution. Often, these collaborations require upfront, milestone and royalty or profit share payments, contingent upon the occurrence of certain future events linked to the success of the asset in development. Amounts due from collaborative partners related to development activities are generally reflected as a reduction of research and development expense because the performance of contract development services is not central to the Company’s operations. In general, the income statement presentation for these collaborations is as follows:
Nature/Type of Collaboration Statement of Earnings Presentation
Third-party sale of product & profit share payments receivedSales to customers
Royalties/milestones paid to collaborative partner (post-regulatory approval)*Cost of products sold
Royalties received from collaborative partnerOther income (expense), net
Upfront payments & milestones paid to collaborative partner (pre-regulatory approval)Research and development expense
Research and development payments to collaborative partnerResearch and development expense
Research and development payments received from collaborative partner or government entityReduction of Research and development expense
*Milestones are capitalized as intangible assets and amortized to cost of products sold over the useful life.
For all years presented, there was no individual project that represented greater than 5% of the total annual consolidated research and development expense.
The Company has a number of products and compounds developed in collaboration with strategic partners including XARELTO®, co-developed with Bayer HealthCare AG and IMBRUVICA®, developed in collaboration and co-marketed with Pharmacyclics LLC, an AbbVie company.
Separately, the Company has a number of licensing arrangements for products and compounds including DARZALEX®, licensed from Genmab A/S.
Advertising
Costs associated with advertising are expensed in the year incurred and are included in selling, marketing and administrative expenses. Advertising expenses worldwide, which comprised television, radio, print media and Internet advertising, were $2.7 billion, $2.1 billion and $2.2 billion in fiscal years 2021, 2020 and 2019, respectively.
Income Taxes
Income taxes are recorded based on amounts refundable or payable for the current year and include the results of any difference between U.S. GAAP accounting and tax reporting, recorded as deferred tax assets or liabilities. The Company estimates deferred tax assets and liabilities based on enacted tax regulations and rates. Future changes in tax laws and rates may affect recorded deferred tax assets and liabilities in the future.
The Company has unrecognized tax benefits for uncertain tax positions. The Company follows U.S. GAAP which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Management believes that changes in these estimates would not have a material effect on the Company's results of operations, cash flows or financial position.
In 2017, the United States enacted into law new U.S. tax legislation, the U.S. Tax Cuts and Jobs Act (TCJA). This law included provisions for a comprehensive overhaul of the corporate income tax code, including a reduction of the statutory corporate tax rate from 35% to 21%, effective on January 1, 2018. The TCJA included a provision for a tax on all previously undistributed earnings of U.S. companies located in foreign jurisdictions. Undistributed earnings in the form of cash and cash equivalents were taxed at a rate of 15.5% and all other earnings were taxed at a rate of 8.0%. This tax is payable over 8 years and will not accrue interest. These payments began in 2018 and will continue through 2025. The remaining balance at the end of the 2021 was approximately $6.9 billion, of which $6.1 billion is classified as noncurrent and reflected as “Long-term taxes payable” on the Company’s balance sheet. The balance of this account is related to receivables from tax authorities not expected to be received in the next 12 months.
The TCJA also includes provisions for a tax on global intangible low-taxed income (GILTI). GILTI is described as the excess of a U.S. shareholder’s total net foreign income over a deemed return on tangible assets, as provided by the TCJA. In January 2018, the FASB issued guidance that allows companies to elect as an accounting policy whether to record the tax effects of GILTI in the period the tax liability is generated (i.e., “period cost”) or provide for deferred tax assets and liabilities related to basis differences that exist and are expected to effect the amount of GILTI inclusion in future years upon reversal (i.e., “deferred method”). The Company has elected to account for GILTI under the deferred method. The deferred tax amounts recorded are based on the evaluation of temporary differences that are expected to reverse as GILTI is incurred in future periods.
The Company has recorded deferred tax liabilities on all undistributed earnings prior to December 31, 2017 from its international subsidiaries. The Company has not provided deferred taxes on the undistributed earnings subsequent to January 1, 2018 from certain international subsidiaries where the earnings are considered to be indefinitely reinvested. The Company intends to continue to reinvest these earnings in those international operations. If the Company decides at a later date to repatriate these earnings to the U.S., the Company would be required to provide for the net tax effects on these amounts. The Company estimates that the tax effect of this repatriation would be approximately $0.7 billion under currently enacted tax laws and regulations and at current currency exchange rates. This amount does not include the possible benefit of U.S. foreign tax credits, which may substantially offset this cost.
See Note 8 to the Consolidated Financial Statements for further information regarding income taxes.
Net Earnings Per Share
Basic earnings per share is computed by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities were exercised or converted into common stock using the treasury stock method.
Use of Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported. Estimates are used when accounting for sales discounts, rebates, allowances and incentives, product liabilities, income taxes, withholding taxes, depreciation, amortization, employee benefits, contingencies and intangible asset and liability valuations. Actual results may or may not differ from those estimates.
The Company follows the provisions of U.S. GAAP when recording litigation related contingencies. A liability is recorded when a loss is probable and can be reasonably estimated. The best estimate of a loss within a range is accrued; however, if no estimate in the range is better than any other, the minimum amount is accrued.
The extent to which COVID-19 impacts the Company’s business and financial results will depend on numerous evolving factors including, but not limited to: the magnitude and duration of COVID-19, the extent to which it will impact worldwide macroeconomic conditions including interest rates, employment rates and health insurance coverage, the speed of the anticipated recovery, and governmental and business reactions to the pandemic. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of January 2, 2022 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s allowance for doubtful accounts and credit losses, inventory and related reserves, accrued rebates and associated reserves, and the carrying value of the goodwill and other long-lived assets along with the Company’s on-going vaccine development and distribution efforts. While there was not a material impact to the Company’s consolidated financial statements as of and for the fiscal year ended January 2, 2022, the Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods.
Annual Closing Date
The Company follows the concept of a fiscal year, which ends on the Sunday nearest to the end of the month of December. Normally each fiscal year consists of 52 weeks, but every five or six years the fiscal year consists of 53 weeks, and therefore includes additional shipping days, as was the case in fiscal year 2020, and will be the case again in fiscal year 2026.
Reclassification
Certain prior period amounts have been reclassified to conform to current year presentation.
v3.22.0.1
Cash, Cash Equivalents and Current Marketable Securities
 12 Months Ended
Jan. 02, 2022
Cash and Cash Equivalents [Abstract]  
Cash, Cash Equivalents and Current Marketable Securities Cash, Cash Equivalents and Current Marketable Securities
At the end of the fiscal year 2021 and 2020, cash, cash equivalents and current marketable securities were comprised of:
(Dollars in Millions)2021
Carrying AmountUnrecognized LossEstimated Fair ValueCash & Cash EquivalentsCurrent Marketable Securities
Cash$2,936 — 2,936 2,936 — 
Non-U.S. Sovereign Securities(1)
1,006 — 1,006 90 916 
U.S. Reverse repurchase agreements1,659 — 1,659 1,659 — 
Corporate debt securities(1)
3,479 (1)3,478 200 3,279 
Money market funds1,901 — 1,901 1,901 — 
Time deposits(1)
900 — 900 900 — 
    Subtotal $11,881 (1)11,880 7,686 4,195 
U.S. Gov't Securities$19,485 (4)19,481 6,785 12,696 
Other Sovereign Securities1 — 1 1 — 
Corporate debt securities245 — 245 15 230 
   Subtotal available for sale(2)
$19,731 (4)19,727 6,801 12,926 
Total cash, cash equivalents and current marketable securities$14,487 17,121 


(Dollars in Millions)2020
Carrying AmountUnrecognized GainEstimated Fair ValueCash & Cash EquivalentsCurrent Marketable Securities
Cash$2,863 — 2,863 2,863 — 
Non-U.S. Sovereign Securities(1)
690 — 690 — 690 
U.S. Reverse repurchase agreements1,937 — 1,937 1,937 — 
Corporate debt securities(1)
2,674 — 2,674 1,451 1,223 
Money market funds2,102 — 2,102 2,102 — 
Time deposits(1)
877 — 877 877 — 
    Subtotal $11,143 — 11,143 9,230 1,913 
Gov't Securities$13,777 1 13,778 4,731 9,047 
Other Sovereign Securities14 — 14 — 14 
Corporate debt securities250 — 250 24 226 
   Subtotal available for sale(2)
$14,041 1 14,042 4,755 9,287 
Total cash, cash equivalents and current marketable securities$13,985 11,200 

(1) Held to maturity investments are reported at amortized cost and realized 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.
Fair value of government securities and obligations and corporate debt securities were estimated using quoted broker prices and significant other observable inputs.

The contractual maturities of the available for sale debt securities at January 2, 2022 are as follows:
(Dollars in Millions)Cost BasisFair Value
Due within one year$19,709 19,705 
Due after one year through five years22 22 
Due after five years through ten years— — 
Total debt securities$19,731 19,727 
The Company invests its excess cash in both deposits with major banks throughout the world and other high-quality money market instruments. The Company has a policy of making investments only with commercial institutions that have at least an investment grade credit rating.
v3.22.0.1
Inventories
 12 Months Ended
Jan. 02, 2022
Inventory Disclosure [Abstract]  
Inventories InventoriesAt the end of fiscal years 2021 and 2020, inventories were comprised of:
(Dollars in Millions)20212020
Raw materials and supplies$1,592 1,410 
Goods in process2,287 2,040 
Finished goods6,508 5,894 
Total inventories$10,387 9,344 
v3.22.0.1
Property, Plant and Equipment
 12 Months Ended
Jan. 02, 2022
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Property, Plant and Equipment
At the end of fiscal years 2021 and 2020, property, plant and equipment at cost and accumulated depreciation were:
(Dollars in Millions)20212020
Land and land improvements$884 882 
Buildings and building equipment12,882 12,502 
Machinery and equipment29,774 29,104 
Construction in progress4,139 4,316 
Total property, plant and equipment, gross$47,679 46,804 
Less accumulated depreciation28,717 28,038 
Total property, plant and equipment, net(1)
$18,962 18,766 

The Company capitalizes interest expense as part of the cost of construction of facilities and equipment. Interest expense capitalized in fiscal years 2021, 2020 and 2019 was $49 million, $63 million and $70 million, respectively.
Depreciation expense, including the amortization of capitalized interest in fiscal years 2021, 2020 and 2019 was $2.7 billion, $2.6 billion and $2.5 billion, respectively.
Upon retirement or other disposal of property, plant and equipment, the costs and related amounts of accumulated depreciation or amortization are eliminated from the asset and accumulated depreciation accounts, respectively. The difference, if any, between the net asset value and the proceeds are recorded in earnings.
v3.22.0.1
Intangible Assets and Goodwill
 12 Months Ended
Jan. 02, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill Intangible Assets and Goodwill
At the end of fiscal years 2021 and 2020, the gross and net amounts of intangible assets were:
(Dollars in Millions)20212020
Intangible assets with definite lives:  
Patents and trademarks — gross$38,572 39,990 
Less accumulated amortization(20,088)(17,618)
Patents and trademarks — net$18,484 22,372 
Customer relationships and other intangibles — gross$23,011 22,898 
Less accumulated amortization(11,925)(10,912)
Customer relationships and other intangibles — net(1)
$11,086 11,986 
Intangible assets with indefinite lives:  
Trademarks$6,985 7,195 
Purchased in-process research and development(2)
9,837 11,849 
Total intangible assets with indefinite lives$16,822 19,044 
Total intangible assets — net$46,392 53,402 
(1)The majority is comprised of customer relationships
(2)In fiscal 2021, the Company recorded a partial IPR&D impairment charge of $0.9 billion primarily related to expected development delays in the general surgery digital robotics platform (Ottava) acquired with the Auris Health acquisition in 2019. The impairment charge was calculated based on revisions to the discounted cash flow valuation model reflecting a delay of first in human procedures of approximately two years from the initial acquisition model assumption of the second half of 2022. The remaining reduction was driven by assets that reached commercialization and are now classified as having definite lives.


Goodwill as of January 2, 2022 and January 3, 2021, as allocated by segment of business, was as follows:
(Dollars in Millions)Consumer HealthPharmaceuticalMedical DevicesTotal
Goodwill at December 29, 2019$9,736 9,169 14,734 33,639 
Goodwill, related to acquisitions— 1,222 238 1,460 
Currency translation/other600 618 76 1,294 
Goodwill at January 3, 2021$10,336 11,009 15,048 36,393 
Goodwill, related to acquisitions— — — — 
Goodwill, related to divestitures(9)— — (9)
Currency translation/other(517)(429)(192)(1,138)
Goodwill at January 2, 2022$9,810 10,580 14,856 35,246 


The weighted average amortization period for patents and trademarks is 12 years. The weighted average amortization period for customer relationships and other intangible assets is 21 years. The amortization expense of amortizable assets included in Cost of products sold was $4.7 billion, $4.7 billion and $4.5 billion before tax, for the fiscal years ended January 2, 2022, January 3, 2021 and December 29, 2019, respectively. Intangible asset write-downs are included in Other (income) expense, net.

The estimated amortization expense for approved products, before tax, for the five succeeding years is approximately:
(Dollars in Millions)
20222023202420252026
$4,6004,6004,4003,6003,000

See Note 18 to the Consolidated Financial Statements for additional details related to acquisitions and divestitures.
v3.22.0.1
Fair Value Measurements
 12 Months Ended
Jan. 02, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company uses forward foreign exchange contracts to manage its exposure to the variability of cash flows, primarily related to the foreign exchange rate changes of future intercompany products and third-party purchases of materials denominated in a foreign currency. The Company uses cross currency interest rate swaps to manage currency risk primarily related to borrowings. Both types of derivatives are designated as cash flow hedges.
Additionally, the Company uses interest rate swaps as an instrument to manage interest rate risk related to fixed rate borrowings. These derivatives are designated as fair value hedges. The Company uses cross currency interest rate swaps and forward foreign exchange contracts designated as net investment hedges. Additionally, the Company uses forward foreign exchange contracts to offset its exposure to certain foreign currency assets and liabilities. These forward foreign exchange contracts are not designated as hedges and therefore, changes in the fair values of these derivatives are recognized in earnings, thereby offsetting the current earnings effect of the related foreign currency assets and liabilities.
The Company does not enter into derivative financial instruments for trading or speculative purposes, or that contain credit risk related contingent features. The Company maintains credit support agreements (CSA) with certain derivative counterparties establishing collateral thresholds based on respective credit ratings and netting agreements. As of January 2, 2022, the total amount of cash collateral paid by the Company under the CSA amounted to $570 million net, related to net investment and cash flow hedges. On an ongoing basis, the Company monitors counter-party credit ratings. The Company considers credit non-performance risk to be low, because the Company primarily enters into agreements with commercial institutions that have at least an investment grade credit rating. Refer to the table on significant financial assets and liabilities measured at fair value contained in this footnote for receivables and payables with these commercial institutions. As of January 2, 2022, the Company had notional amounts outstanding for forward foreign exchange contracts, cross currency interest rate swaps and interest rate swaps of $45.8 billion, $37.4 billion and $10.0 billion, respectively. As of January 3, 2021, the Company had notional amounts outstanding for forward foreign exchange contracts and cross currency interest rate swaps of $37.8 billion and $30.6 billion, respectively.
All derivative instruments are recorded on the balance sheet at fair value. Changes in the fair value of derivatives are recorded each period in current earnings or other comprehensive income, depending on whether the derivative is designated as part of a hedge transaction, and if so, the type of hedge transaction.
The designation as a cash flow hedge is made at the entrance date of the derivative contract. At inception, all derivatives are expected to be highly effective. Foreign exchange contracts designated as cash flow hedges are accounted for under the forward method and all gains/losses associated with these contracts will be recognized in the income statement when the hedged item impacts earnings. Changes in the fair value of these derivatives are recorded in accumulated other comprehensive income until the underlying transaction affects earnings, and are then reclassified to earnings in the same account as the hedged transaction.
Gains and losses associated with interest rate swaps and changes in fair value of hedged debt attributable to changes in interest rates are recorded to interest expense in the period in which they occur. Gains and losses on net investment hedge are accounted through the currency translation account within accumulated other comprehensive income. The portion excluded from effectiveness testing is recorded through interest (income) expense using the spot method. On an ongoing basis, the Company assesses whether each derivative continues to be highly effective in offsetting changes of hedged items. If and when a derivative is no longer expected to be highly effective, hedge accounting is discontinued.
The Company designated its Euro denominated notes issued in May 2016 with due dates ranging from 2022 to 2035 as a net investment hedge of the Company's investments in certain of its international subsidiaries that use the Euro as their functional currency in order to reduce the volatility caused by changes in exchange rates.
As of January 2, 2022, the balance of deferred net loss on derivatives included in accumulated other comprehensive income was $336 million after-tax. For additional information, see the Consolidated Statements of Comprehensive Income and Note 13. The Company expects that substantially all of the amounts related to forward foreign exchange contracts will be reclassified into earnings over the next 12 months as a result of transactions that are expected to occur over that period. The maximum length of time over which the Company is hedging transaction exposure is 18 months, excluding interest rate contracts and net investment hedges. The amount ultimately realized in earnings may differ as foreign exchange rates change. Realized gains and losses are ultimately determined by actual exchange rates at maturity of the derivative.
The following table is a summary of the activity related to derivatives and hedges for the fiscal years ended January 2, 2022 and January 3, 2021, net of tax:
January 2, 2022January 3, 2021
(Dollars in Millions)SalesCost of Products SoldR&D ExpenseInterest (Income) ExpenseOther (Income) ExpenseSalesCost of Products SoldR&D ExpenseInterest (Income) ExpenseOther (Income) Expense
The effects of fair value, net investment and cash flow hedging:
Gain (Loss) on fair value hedging relationship:
Interest rate swaps contracts:
 Hedged items$— — — (109)— — — — — — 
 Derivatives designated as hedging instruments— — — 109 — — — — — — 
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$— — — 174 — — — — 153 — 
   Amount of gain or (loss) recognized in AOCI— — — 174 — — — — 153 — 
Gain (Loss) on cash flow hedging relationship:
Forward foreign exchange contracts:
   Amount of gain or (loss) reclassified from AOCI into income17 119 30 — 47 12 (329)(137)— (16)
   Amount of gain or (loss) recognized in AOCI(94)(557)123 — 146 44 298 (91)— (52)
Cross currency interest rate swaps contracts:
   Amount of gain or (loss) reclassified from AOCI into income— — — 402 — — — — 370 — 
   Amount of gain or (loss) recognized in AOCI$— — — 9 — — — — 748 — 


As of January 2, 2022 and January 3, 2021, 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 LiabilityCumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability
(Dollars in Millions)January 2, 2022January 3, 2021January 2, 2022January 3, 2021
Long-term Debt$9,793 $— $(142)$— 
The following table is the effect of derivatives not designated as hedging instrument for the fiscal years ended January 2, 2022 and January 3, 2021:
(Dollars in Millions)Location of Gain /(Loss) Recognized in Income on DerivativeGain/(Loss)
Recognized In
Income on Derivative
Derivatives Not Designated as Hedging InstrumentsJanuary 2, 2022January 3, 2021
Foreign Exchange ContractsOther (income) expense$(70)24 


The following table is the effect of net investment hedges for the fiscal years ended January 2, 2022 and January 3, 2021:
Gain/(Loss)
Recognized In
Accumulated OCI		Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Into IncomeGain/(Loss) Reclassified From
Accumulated OCI
Into Income
(Dollars in Millions)January 2, 2022January 3, 2021January 2, 2022January 3, 2021
Debt$387 (473)Interest (income) expense
— — 
Cross Currency interest rate swaps$548 65 Interest (income) expense— — 
The Company holds equity investments with readily determinable fair values and equity investments without readily determinable fair values. The Company measures equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.
The following table is a summary of the activity related to equity investments for the fiscal years ended January 2, 2022 and January 3, 2021:
January 3, 2021January 2, 2022
(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$1,481 198 205 1,884 1,884 
Equity Investments without readily determinable value$738 394 (632)500 500 

December 29, 2019January 3, 2021
(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$1,148 527 (194)1,481 1,481 
Equity Investments without readily determinable value$712 (55)81 738 738 

(1) Recorded in Other Income/Expense
(2) Other includes impact of currency
For the fiscal years ended January 2, 2022 and January 3, 2021 for equity investments without readily determinable market values, $28 million and $76 million, respectively, of the changes in fair value reflected in net income were the result of impairments. There were offsetting impacts of $422 million and $21 million, respectively, of changes in fair value reflected in net income due to changes in observable prices and gains on the disposal of investments. The impact in fiscal 2021 was driven by the gain on disposal of the Grail investment.

Fair value is the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement determined using assumptions that market participants would use in pricing an asset or liability. In accordance with ASC 820, a three-level hierarchy to prioritize the inputs used in measuring fair value. The levels within the hierarchy are described below with Level 1 having the highest priority and Level 3 having the lowest.

The fair value of a derivative financial instrument (i.e., forward foreign exchange contracts, interest rate contracts) is the aggregation by currency of all future cash flows discounted to its present value at the prevailing market interest rates and subsequently converted to the U.S. Dollar at the current spot foreign exchange rate. The Company does not believe that fair values of these derivative instruments materially differ from the amounts that could be realized upon settlement or maturity, or that the changes in fair value will have a material effect on the Company’s results of operations, cash flows or financial position. The Company also holds equity investments which are classified as Level 1 and debt securities which are classified as Level 2. The Company holds acquisition related contingent liabilities based upon certain regulatory and commercial events, which are classified as Level 3, whose values are determined using discounted cash flow methodologies or similar techniques for which the determination of fair value requires significant judgment or estimations.

The following three levels of inputs are used to measure fair value:
Level 1 — Quoted prices in active markets for identical assets and liabilities.
Level 2 — Significant other observable inputs.
Level 3 — Significant unobservable inputs.

The Company’s significant financial assets and liabilities measured at fair value as of the fiscal year ended January 2, 2022 and January 3, 2021 were as follows:
20212020
(Dollars in Millions)Level 1Level 2Level 3Total
Total (1)
Derivatives designated as hedging instruments:     
Assets:     
Forward foreign exchange contracts $— 540 — 540 849 
Interest rate contracts (2)
— 796 — 796 240 
Total$— 1,336 — 1,336 1,089 
Liabilities:     
Forward foreign exchange contracts— 881 — 881 702 
Interest rate contracts (2)
— 979 — 979 1,569 
Total$— 1,860 — 1,860 2,271 
Derivatives not designated as hedging instruments:     
Assets:     
Forward foreign exchange contracts $— 24 — 24 49 
Liabilities:     
Forward foreign exchange contracts— 28 — 28 38 
Available For Sale Other Investments:
Equity investments(3)
1,884 — — 1,884 1,481 
Debt securities(4)
— 19,727 — 19,727 14,042 
Other Liabilities
Contingent Consideration(5)
$533 533 633 
Gross to Net Derivative Reconciliation20212020
(Dollars in Millions)
Total Gross Assets$1,360 1,138 
Credit Support Agreement (CSA)(1,285)(1,107)
Total Net Asset75 31 
Total Gross Liabilities1,888 2,309 
Credit Support Agreement (CSA)(1,855)(2,172)
Total Net Liabilities$33 137 

Summarized information about changes in liabilities for contingent consideration is as follows:
202120202019
(Dollars in Millions)
Beginning Balance$633 1,715 397 
Changes in estimated fair value (6)
(52)(1,089)151 
Additions— 106 1,246 
Payments(48)(99)(79)
Ending Balance$533 633 1,715 

(1)2020 assets and liabilities are all classified as Level 2 with the exception of equity investments of $1,481 million, which are classified as Level 1 and contingent consideration of $633 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 $520 million, $594 million and $1,631 million, classified as non-current other liabilities as of January 2, 2022, January 3, 2021 and December 29, 2019, respectively. Includes $13 million, $39 million and $84 million classified as current liabilities as of January 2, 2022, January 3, 2021 and December 29, 2019, respectively.
(6)Ongoing fair value adjustment amounts are recorded primarily in Research and Development expense. The Company recorded a contingent consideration reversal of $1,148 million in 2020 related to the timing of certain developmental milestones associated with the Auris Health acquisition. The reversal of the contingent consideration was recorded in Other income and expense.

See Notes 2 and 7 for financial assets and liabilities held at carrying amount on the Consolidated Balance Sheet.
v3.22.0.1
Borrowings
 12 Months Ended
Jan. 02, 2022
Debt Disclosure [Abstract]  
Borrowings BorrowingsThe components of long-term debt are as follows:
(Dollars in Millions)2021
 
Effective Rate %
 
2020
 
Effective Rate %
3.55% Notes due 2021
$— — %$450 3.67 %
2.45% Notes due 2021
— — 350 2.48 
1.65% Notes due 2021
— — 999 1.65 
0.250% Notes due 2022 (1B Euro 1.1311)(2)/(1B Euro 1.2281)(3)

1,131 
(2)
0.26 1,227 
(3)
0.26 
2.25% Notes due 2022
1,000 2.31 999 2.31 
6.73% Debentures due 2023
250 
 
6.73 
 
250 
 
6.73 
3.375% Notes due 2023
802 3.18 803 3.17 
2.05% Notes due 2023
499 2.09 499 2.09 
0.650% Notes due 2024
(750MM Euro 1.1311)(2)/(750MM Euro 1.2281)(3)
847 
(2)
0.68 919 
(3)
0.68 
5.50% Notes due 2024
(500MM 1.3485 GBP )(2)/(500MM GBP 1.3654)(3)
672 
(2)
6.75 
 
679 
(3)
6.75 
2.625% Notes due 2025
749 2.63 748 2.63 
0.55% Notes due 2025
983 0.57 996 0.57 
2.45% Notes due 2026
1,995 2.47 1,994 2.47 
2.95% Notes due 2027
978 2.96 997 2.96 
0.95% Notes due 2027
1,478 0.96 1,494 0.96 
1.150% Notes due 2028 (750MM Euro 1.1311)(2)/(750MM Euro 1.2281)(3)
843 
(2)
1.21 915 
(3)
1.21 
2.90% Notes due 2028
1,495 2.91 1,495 2.91 
6.95% Notes due 2029
298 
 
7.14 
 
297 
 
7.14 
1.30% Notes due 2030
1,723 1.30 1,743 1.30 
4.95% Debentures due 2033
498 
 
4.95 
 
498 
 
4.95 
4.375% Notes due 2033
854 4.24 855 4.24 
1.650% Notes due 2035 (1.5B Euro 1.1311)(2)/(1.5B Euro 1.2281)(3)
1,683 
(2)
1.68 1,827 
(3)
1.68 
3.55% Notes due 2036
974 3.59 989 3.59 
5.95% Notes due 2037
993 
 
5.99 
 
992 
 
5.99 
3.625% Notes due 2037
1,475 3.64 1,488 3.64 
5.85% Debentures due 2038
696 
 
5.85 
 
696 
 
5.85 
3.400% Notes due 2038
992 3.42 991 3.42 
4.50% Debentures due 2040
540 
 
4.63 
 
539 
 
4.63 
2.10% Notes due 2040
974 2.14 986 2.14 
4.85% Notes due 2041
297 4.89 297 4.89 
4.50% Notes due 2043
496 4.52 496 4.52 
3.70% Notes due 2046
1,975 3.74 1,974 3.74 
3.75% Notes due 2047
971 3.76 991 3.76 
3.500% Notes due 2048
743 3.52 742 3.52 
2.250% Notes due 2050
983 2.29 984 2.29 
2.450% Notes due 2060
1,222 2.49 1,228 2.49 
Other7 
 
— 
 
7 
 
— 
Subtotal32,116 
(4)
2.89 %
(1)
34,434 
(4)
2.85 %
(1)
Less current portion2,131 
 
 
 
1,799 
 
 
Total long-term debt$29,985 
 
 
 
$32,635 
 
 
(1)Weighted average effective rate.
(2)Translation rate at January 2, 2022.
(3)Translation rate at January 3, 2021.
(4)The excess of the fair value over the carrying value of debt was $3.2 billion at the end of fiscal year 2021 and $5.4 billion at the end of fiscal year 2020.

Fair value of the long-term debt was estimated using market prices, which were corroborated by quoted broker prices and significant other observable inputs.
The Company has access to substantial sources of funds at numerous banks worldwide. In September 2021, the Company secured a new 364-day Credit Facility. Total credit available to the Company approximates $10 billion, which expires on September 8, 2022. Interest charged on borrowings under the credit line agreement is based on either the Term SOFR Reference Rate or other applicable market rates as allowed under the terms of the agreement, plus applicable margins. Commitment fees under the agreements are not material.
Throughout fiscal years 2021 and 2020, the Company continued to have access to liquidity through the commercial paper market. Short-term borrowings and the current portion of long-term debt amounted to approximately $3.8 billion and $2.6 billion at the end of fiscal years 2021 and 2020, respectively. The current portion of the long term debt was $2.1 billion and $1.8 billion in 2021 and 2020, respectively, and the remainder is commercial paper and local borrowing by international subsidiaries.
The current debt balance as of January 2, 2022 includes $1.6 billion of commercial paper which has a weighted average interest rate of 0.11% and a weighted average maturity of approximately three months.

Aggregate maturities of long-term debt obligations commencing in 2022 are:
(Dollars in Millions)
20222023202420252026After 2026
$2,1311,5511,5181,7321,99523,189
v3.22.0.1
Income Taxes
 12 Months Ended
Jan. 03, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income TaxesThe provision for taxes on income consists of:
(Dollars in Millions)202120202019
Currently payable:
U.S. taxes$1,525 1,026 1,941 
International taxes2,452 1,898 2,744 
Total currently payable3,977 2,924 4,685 
Deferred:
U.S. taxes583 (76)(814)
International taxes(2,662)(1,065)(1,662)
Total deferred(2,079)(1,141)(2,476)
Provision for taxes on income$1,898 1,783 2,209 
A comparison of income tax expense at the U.S. statutory rate of 21% in fiscal years 2021, 2020 and 2019, to the Company’s effective tax rate is as follows:
(Dollars in Millions)202120202019
U.S. $6,110 4,312 3,543 
International16,666 12,185 13,785 
Earnings before taxes on income:$22,776 16,497 17,328 
Tax rates:
U.S. statutory rate21.0 %21.0 21.0 
International operations (1)
(16.4)(9.9)(5.9)
U.S. taxes on international income (2)
6.7 2.7 1.8 
Tax benefits from loss on capital assets(1.3)(1.2)(0.3)
Tax benefits on share-based compensation(1.0)(1.5)(0.5)
TCJA and related impacts(0.5)0.7 (3.9)
(3)
All other(0.2)(1.0)0.5 
Effective Rate8.3 %10.8 12.7 

(1) For all periods presented the Company has subsidiaries operating in Puerto Rico under various tax incentives. International operations reflects the impacts of operations in jurisdictions with statutory tax rates different than the U.S., particularly Ireland, Switzerland and Puerto Rico, which is a favorable impact on the effective tax rate as compared with the U.S. statutory rate. The 2021 amounts include the reorganization of international subsidiaries; the 2020 and 2019 amounts include the impact of the new tax legislation enactment in Switzerland, both of which are further described below.
(2) Includes the impact of the GILTI tax, the Foreign-Derived Intangible Income deduction and other foreign income that is taxable under the U.S. tax code. The 2021 amounts include the reorganization of international subsidiaries; the 2020 and 2019 amounts include the impact of the new tax legislation enactment in Switzerland, both of which is further described below.
(3) Represents impact of adjustments to balances originally recorded as part of the 2017 TCJA provisional tax charge. Further information provided below.

The fiscal year 2021 tax rate decreased by 2.5% compared to the fiscal year 2020 tax rate, which was primarily driven by the following items. In fiscal year 2021, the Company reorganized the ownership structure of certain wholly-owned international subsidiaries. As part of this reorganization, the Company increased the tax basis of certain assets to fair value in accordance with applicable local regulations. The net impact of this restructuring was approximately $0.6 billion net benefit or 2.7% benefit to the Company’s annual effective tax rate, comprised of the following items:

•approximately $2.3 billion of local deferred tax assets to record the remeasurement of the tax basis of these assets to fair value, this benefit has been reflected as “International Operations” on the Company’s effective tax rate reconciliation.
•approximately $1.7 billion of U.S. deferred tax expense relating to the GILTI deferred tax liability resulting from the remeasurement of these deferred tax assets. This expense has been reflected as “U.S. tax on international income” on the Company’s effective tax rate reconciliation.

Also, in the fiscal fourth quarter of 2021, the Company recognized a loss on certain U.S. affiliates related to the previously impaired book value of certain intangibles, which reduced the 2021 tax rate by approximately 1.3% which is reflected as a “Tax benefits from loss on capital assets” on the effective tax rate reconciliation. Additionally other fiscal 2021 impacts to the rate were primarily driven by litigation and acquisition related items as follows:

•the Company accrued additional legal expenses, of approximately $1.6 billion for talc at an effective tax rate of 23.5% and $0.8 billion for Risperdal settlements at an effective tax rate of 16.4% (See Note 19 to the Consolidated Financial Statements for more details).
•the Company recorded a partial IPR&D charge of $0.9 billion for the Ottava intangible asset (acquired with the Auris Health acquisition in 2019) at an effective rate of 22.4% (See Notes 5 and 18 to the Consolidated Financial Statements for more details).

The fiscal year 2020 tax rate decreased by 1.9% compared to the fiscal year 2019 tax rate. which was primarily driven by the following items. In fiscal year 2019, Switzerland enacted the Federal Act on Tax Reform and AHV Financing (TRAF) which became effective on January 1, 2020. The Federal transitional provisions of TRAF allow companies, under certain conditions, to adjust the tax basis in certain assets to fair value (i.e., “step-up”) to be depreciated and amortized resulting in an incremental Swiss tax deduction over the transitional period.

TRAF also provides for parameters which enable the Swiss cantons to establish localized tax rates and regulations for companies. The new cantonal tax parameters include favorable tax benefits for patents and additional research and development
tax deductions. The cantonal transitional provisions of TRAF allowed companies to elect either 1) tax basis step-up similar to the Federal transition benefit or 2) alternative statutory tax rate for a period not to exceed 5 years. The Company currently has operations located in various Swiss cantons. During the fiscal year 2019, as described in further detail below, the Company recorded the impacts of the TRAF that were enacted in that period.

During the fiscal year 2020, the final canton where the Company maintains significant operations enacted TRAF legislation. Additionally, the Company received rulings from the Swiss Federal and cantonal tax authorities in the remaining jurisdictions where it has significant operations. These rulings resulted in the Company revising its estimate on the tax basis adjustment (i.e., “step-up”) for its assets and as a result, the Company recorded additional deferred tax benefits in 2020. The Company recognized a net benefit in the fiscal year 2020 for Swiss Tax Reform of approximately $0.4 billion or 2.6% benefit to the Company’s annual effective tax rate, comprised of the following items:

•approximately $0.3 billion tax benefit relating to the remeasurement of Swiss deferred tax assets and liabilities for the change in the Federal and cantonal tax rates, where enactment occurred in the fiscal year 2020; this benefit has been reflected as “International Operations” on the Company’s effective tax rate reconciliation.
•a $450 million deferred tax asset related to the estimated value of a Federal tax basis step-up of the Company’s Swiss subsidiaries’ assets as described above; this benefit has been reflected as “International Operations” on the Company’s effective tax rate reconciliation.
•approximately $0.3 billion of U.S. deferred tax expense relating to the GILTI deferred tax liability resulting from the remeasurement of the Swiss deferred tax assets and liabilities in the fiscal year 2020. This benefit has been reflected as “U.S. tax on international income” on the Company’s effective tax rate reconciliation.

The Company does not expect to receive future rulings regarding the transitional provisions of TRAF.

Also, in the fiscal year 2020, the Company recognized a capital loss on certain U.S. affiliates related to the previously impaired book value of certain intangibles, which reduced the 2020 tax rate by approximately 1.2% which is reflected as a “Tax benefits from loss on capital assets” on the effective tax rate reconciliation. In addition, in the fiscal year 2020, the Company had lower income in higher tax jurisdictions, primarily driven by:

•the impact of the accrual of litigation costs related to talc for $4.0 billion which reduced the U.S. earnings before taxes at an effective tax rate of 23.5%;
•the accrual of additional legal costs, including an additional $1.0 billion associated with a revised agreement in principle to settle opioid litigation at an effective tax rate of 21.4%

The Company also reduced the contingent consideration liability related to the Auris Health acquisition (see Note 18) and reversed of some of its unrecognized tax benefits due to the completion of several years of tax examinations in certain jurisdictions during the fiscal year 2020.

In fiscal year 2019, the Company reorganized the ownership structure of certain wholly-owned international subsidiaries in the fiscal fourth quarter of 2019, which resulted in a reduction of certain withholding and local taxes that it had previously recognized as part of the provisional Tax Cuts and Jobs Act (TCJA) tax charge in the fiscal year 2017 and finalized in the fiscal year 2018. Following the completion of this restructuring and approval by the applicable local authorities, the Company reversed a deferred tax liability of $0.6 billion and a related deferred tax asset of $0.2 billion for U.S. foreign tax credits, for a net deferred tax benefit of $0.4 billion decreasing the annual effective tax rate by 2.2%. This benefit has been reflected as “TCJA and related impacts” on the Company’s effective tax rate reconciliation. The following items also impacted the fiscal year 2019 effective tax rate:
•The impact of the agreement in principle to settle opioid litigation for $4 billion (see Note 19 to the Consolidated Financial Statements) which reduced the U.S. earnings before taxes at an effective tax rate of 23.5% and decreased the Company’s annual effective tax rate by approximately 2.1%.
•In December of fiscal year 2019, the U.S. Treasury issued final foreign tax credit regulations, which resulted in the Company revising the amount of foreign tax credits that were initially recorded in the fiscal year 2017 as part of the provisional TCJA tax charge. As a result, the Company recorded an increased deferred tax asset related to these foreign tax credits of approximately $0.3 billion or 1.7% to the annual effective tax rate. This benefit has been reflected as “TCJA and related impacts” on the Company’s effective tax rate reconciliation.
•The Company reassessed its uncertain tax positions related to the current IRS audit and increased its unrecognized tax benefit by $0.3 billion liability which increased the annual effective tax rate by approximately 1.5% (see section on Unrecognized Tax Benefits for additional information). As these positions were related to uncertain tax regarding international transfer pricing, this expense has been classified as “International Operations” on the Company’s effective tax rate reconciliation.
As described above for the Swiss tax legislation, in the fiscal year 2019, the Company recorded a net tax expense of $0.1 billion which increased the effective tax rate for the fiscal year 2019 by approximately 0.6%. This net tax expense related to federal and certain cantonal enactments in the fiscal year 2019 consisting of the following provisions:

•approximately $0.6 billion tax expense relating to the remeasurement of Swiss deferred tax assets and liabilities for the change in the Federal and cantonal tax rates, where enactment occurred by December 29, 2019; this expense has been reflected as “International Operations” on the Company’s effective tax rate reconciliation.
•a $0.9 billion deferred tax asset related to the estimated value of a Federal tax basis step-up of the Company’s Swiss subsidiaries’ assets; this benefit has been reflected as “International Operations” on the Company’s effective tax rate reconciliation.
•approximately $450 million of U.S. deferred tax expense relating to the GILTI deferred tax liability resulting from the remeasurement of the Swiss deferred tax assets and liabilities and the new deferred tax asset for the Federal step-up. This benefit has been reflected as “U.S. tax on international income” on the Company’s effective tax rate reconciliation.

Temporary differences and carryforwards at the end of fiscal years 2021 and 2020 were as follows:
2021 Deferred Tax
2020 Deferred Tax(1)
(Dollars in Millions)AssetLiabilityAssetLiability
Employee related obligations$1,244 2,434 
Stock based compensation679 627 
Depreciation of property, plant and equipment(876)(823)
Goodwill and intangibles(2,659)
(2)
(5,023)
R&D capitalized for tax1,664 1,517 
Reserves & liabilities2,882 3,466 
Income reported for tax purposes2,566 1,777 
Net realizable operating loss carryforward1,073 990 
Undistributed foreign earnings1,015 (1,461)812 (1,435)
Global intangible low-taxed income(4,853)(3,606)
Miscellaneous international1,006 (39)854 (211)
Miscellaneous U.S. 495 (59)
Total deferred income taxes$12,624 (9,888)12,477 (11,157)
(1)Certain prior year amounts have been reclassified to conform to current year presentation
(2)Amount is inclusive of the $2.3 billion deferred tax asset established as part of the reorganized ownership structure of certain wholly-owned international subsidiaries, as previously described.

The Company has wholly-owned international subsidiaries that have cumulative net losses. The Company believes that it is more likely than not that these subsidiaries will generate future taxable income sufficient to utilize these deferred tax assets. However, in certain jurisdictions, valuation allowances have been recorded against deferred tax assets for loss carryforwards that are not more likely than not to be realized. Such valuation allowances are not material.
The following table summarizes the activity related to unrecognized tax benefits:
(Dollars in Millions)202120202019
Beginning of year$3,373 3,853 3,326 
Increases related to current year tax positions242 265 249 
Increases related to prior period tax positions23 668 408 
Decreases related to prior period tax positions(128)(551)(105)
Settlements(187)(839)(9)
Lapse of statute of limitations0 (23)(16)
End of year$3,323 3,373 3,853 
The unrecognized tax benefits of $3.3 billion at January 2, 2022, if recognized, would affect the Company’s annual effective tax rate. The Company conducts business and files tax returns in numerous countries and currently has tax audits in progress with a number of tax authorities. With respect to the United States, the IRS has completed its audit for the tax years through 2012 and is currently auditing tax years 2013 through 2016. In the fiscal year 2020, the Company made its final payments for approximately$0.7 billion to the U.S. Treasury related to the final settlement of 2010-2012 tax audit liability.

In other major jurisdictions where the Company conducts business, the years that remain open to tax audit go back to the year 2008. The Company believes it is possible that tax audits may be completed over the next twelve months by taxing authorities in some jurisdictions outside of the United States. However, the Company is not able to provide a reasonably reliable estimate of the timing of any other future tax payments relating to uncertain tax positions.

The Company classifies liabilities for unrecognized tax benefits and related interest and penalties as long-term liabilities, except as previously noted on amounts related to the current United States IRS audit. Interest expense and penalties related to unrecognized tax benefits are classified as income tax expense. The Company recognized after tax interest expense of $44 million, $32 million and $50 million in fiscal years 2021, 2020 and 2019, respectively. The total amount of accrued interest was $512 million and $468 million in fiscal years 2021 and 2020, respectively.
v3.22.0.1
Employee Related Obligations
 12 Months Ended
Jan. 02, 2022
Compensation Related Costs [Abstract]  
Employee Related Obligations Employee Related Obligations
At the end of fiscal 2021 and fiscal 2020, employee related obligations recorded on the Consolidated Balance Sheets were:
(Dollars in Millions)20212020
Pension benefits$4,088 5,761 
Postretirement benefits2,069 2,229 
Postemployment benefits3,117 3,078 
Deferred compensation181 250 
Total employee obligations9,455 11,318 
Less current benefits payable557 547 
Employee related obligations — non-current$8,898 10,771 
Prepaid employee related obligations of $4,436 million and $656 million for 2021 and 2020, respectively, are included in Other assets on the Consolidated Balance Sheets.
v3.22.0.1
Pensions and Other Benefit Plans
 12 Months Ended
Jan. 02, 2022
Retirement Benefits [Abstract]  
Pensions and Other Benefit Plans Pensions and Other Benefit Plans
The Company sponsors various retirement and pension plans, including defined benefit, defined contribution and termination indemnity plans, which cover most employees worldwide. The Company also provides post-retirement benefits, primarily healthcare, to all eligible U.S. retired employees and their dependents.

Many international employees are covered by government-sponsored programs and the cost to the Company is not significant.

In the U.S, non-union pension benefits for employees hired before January 1, 2015 are primarily based on the employee’s compensation during the last five years before retirement and the number of years of service (the Final Average Pay formula). U.S. pension benefits for employees hired after 2014, are calculated using a different formula based on employee compensation over total years of service (the Retirement Value formula).

In January 2021, the Company announced that, effective on January 1, 2026, all eligible U.S. non-union employees,
regardless of hire date, will earn benefits under the Retirement Value formula. This amendment does not affect the benefits
accrued under the Final Average Pay formula for service before January 1, 2026. The impact of this change decreases the
Projected Benefit Obligation as of January 3, 2021 by approximately $1.8 billion and is included in the “Amendments” line in the Change in Benefit Obligation.

International subsidiaries have plans under which funds are deposited with trustees, annuities are purchased under group contracts, or reserves are provided.

The Company does not fund retiree healthcare benefits in advance and has the right to modify these plans in the future.

In 2021 and 2020 the Company used December 31, 2021 and December 31, 2020, respectively, as the measurement date for all U.S. and international retirement and other benefit plans.


Net periodic benefit costs for the Company’s defined benefit retirement plans and other benefit plans for 2021, 2020 and 2019 include the following components:
 Retirement PlansOther Benefit Plans
(Dollars in Millions)202120202019202120202019
Service cost$1,421 1,380 1,163 309 287 274 
Interest cost770 955 1,096 81 133 185 
Expected return on plan assets(2,645)(2,461)(2,322)(7)(7)(6)
Amortization of prior service cost (181)2 4 (31)(31)(31)
Recognized actuarial losses (gains)1,257 891 579 151 142 129 
Curtailments and settlements1 23 73 — — — 
Net periodic benefit cost$623 790 593 503 524 551 

The service cost component of net periodic benefit cost is presented in the same line items on the Consolidated Statement of Earnings where other employee compensation costs are reported, including Cost of products sold, Research and development expense, and Selling, marketing and administrative expenses. All other components of net periodic benefit cost are presented as part of Other (income) expense, net on the Consolidated Statement of Earnings.

Unrecognized gains and losses for the U.S. pension plans are amortized over the average remaining future service for each plan. For plans with no active employees, they are amortized over the average life expectancy. The amortization of gains and losses for the other U.S. benefit plans is determined by using a 10% corridor of the greater of the market value of assets or the accumulated postretirement benefit obligation. Total unamortized gains and losses in excess of the corridor are amortized over the average remaining future service.

Prior service costs/benefits for the U.S. pension plans are amortized over the average remaining future service of plan participants at the time of the plan amendment. Prior service cost/benefit for the other U.S. benefit plans is amortized over the average remaining service to full eligibility age of plan participants at the time of the plan amendment.
The following table represents the weighted-average actuarial assumptions:
 Retirement PlansOther Benefit Plans
Worldwide Benefit Plans202120202019202120202019
Net Periodic Benefit Cost
Service cost discount rate2.14 %2.82 3.63 2.09 3.04 4.45 
Interest cost discount rate2.34 %3.13 4.13 2.33 3.08 4.25 
Rate of increase in compensation levels4.01 %4.00 3.99 4.25 4.25 4.29 
Expected long-term rate of return on plan assets7.71 %8.12 8.31 
Benefit Obligation
Discount rate2.49 %2.14 2.91 2.68 2.23 3.39 
Rate of increase in compensation levels4.01 %4.00 4.01 4.21 4.27 4.29 

The Company’s discount rates are determined by considering current yield curves representing high quality, long-term fixed income instruments. The resulting discount rates are consistent with the duration of plan liabilities. The Company's methodology in determining service and interest cost uses duration specific spot rates along that yield curve to the plans' liability cash flows.

The expected rates of return on plan asset assumptions represent the Company's assessment of long-term returns on diversified investment portfolios globally. The assessment is determined using projections from external financial sources, long-term historical averages, actual returns by asset class and the various asset class allocations by market.

The following table displays the assumed healthcare cost trend rates, for all individuals:
Healthcare Plans20212020
Healthcare cost trend rate assumed for next year5.33 %5.68 %
Rate to which the cost trend rate is assumed to decline (ultimate trend)3.73 %4.49 %
Year the rate reaches the ultimate trend rate2046 2040 
The following table sets forth information related to the benefit obligation and the fair value of plan assets at fiscal year-end 2021 and 2020 for the Company’s defined benefit retirement plans and other post-retirement plans:
 Retirement PlansOther Benefit Plans
(Dollars in Millions)2021202020212020
Change in Benefit Obligation
Projected benefit obligation — beginning of year$43,300 37,188 5,028 5,076 
Service cost1,421 1,380 309 287 
Interest cost770 955 81 133 
Plan participant contributions67 61 — — 
Amendments(1)
5 (1,780)— — 
Actuarial (gains) losses(2)
(2,132)5,716 (188)(75)
Divestitures & acquisitions(2)(88)— — 
Curtailments, settlements & restructuring(7)(24)— — 
Benefits paid from plan(1,157)(1,111)(348)(396)
Effect of exchange rates(683)1,003 (4)3 
Projected benefit obligation — end of year$41,582 43,300 4,878 5,028 
Change in Plan Assets
Plan assets at fair value — beginning of year$38,195 32,201 90 115 
Actual return on plan assets4,439 5,524 17 14 
Company contributions969 870 343 357 
Plan participant contributions67 61 — — 
Settlements(7)(13)— — 
Divestitures & acquisitions(2)(84)— — 
Benefits paid from plan assets(1,157)(1,111)(348)(396)
Effect of exchange rates(574)747 — — 
Plan assets at fair value — end of year$41,930 38,195 102 90 
Funded status — end of year$348 (5,105)(4,776)(4,938)
Amounts Recognized in the Company’s Balance Sheet consist of the following:
Non-current assets$4,436 656 — — 
Current liabilities(115)(125)(438)(418)
Non-current liabilities(3,973)(5,636)(4,338)(4,520)
Total recognized in the consolidated balance sheet — end of year$348 (5,105)(4,776)(4,938)
Amounts Recognized in Accumulated Other Comprehensive Income consist of the following:
Net actuarial loss$5,539 10,860 1,113 1,463 
Prior service cost (credit)(1)
(1,610)(1,797)(13)(44)
Unrecognized net transition obligation— — — — 
Total before tax effects$3,929 9,063 1,100 1,419 
Accumulated Benefit Obligations — end of year$39,049 40,356 
(1)In January 2021, the Company announced that, effective on January 1, 2026, all eligible U.S. non-union employees, regardless of hire date, will earn benefits under the Retirement Value formula. This amendment does not affect the benefits accrued under the Final Average Pay formula for service before January 1, 2026.
(2)The actuarial gain for retirement plans in 2021 was primarily related to increases in discount rates; the actuarial losses for retirement plans in 2020 were primarily related to decreases in discount rates.
 Retirement PlansOther Benefit Plans
(Dollars in Millions)2021202020212020
Amounts Recognized in Net Periodic Benefit Cost and Other Comprehensive Income
Net periodic benefit cost$623 790 503 524 
Net actuarial (gain) loss(3,927)2,616 (199)(81)
Amortization of net actuarial loss(1,257)(891)(151)(142)
Prior service cost (credit)5 (1,780)— — 
Amortization of prior service (cost) credit181 (2)31 31 
Effect of exchange rates(136)293 — 1 
Total loss/(income) recognized in other comprehensive income, before tax$(5,134)236 (319)(191)
Total recognized in net periodic benefit cost and other comprehensive income$(4,511)1,026 184 333 

The Company plans to continue to fund its U.S. Qualified Plans to comply with the Pension Protection Act of 2006. International Plans are funded in accordance with local regulations. Additional discretionary contributions are made when deemed appropriate to meet the long-term obligations of the plans. For certain plans, funding is not a common practice, as funding provides no economic benefit. Consequently, the Company has several pension plans that are not funded.

In 2021, the Company contributed $102 million and $867 million to its U.S. and international pension plans, respectively.
The following table displays the funded status of the Company's U.S. Qualified & Non-Qualified pension plans and international funded and unfunded pension plans at December 31, 2021 and December 31, 2020, respectively:
U.S. PlansInternational Plans
Qualified PlansNon-Qualified PlansFunded PlansUnfunded Plans
(Dollars in Millions)20212020202120202021202020212020
Plan Assets$27,944 25,554 — — 13,986 12,641 — — 
Projected Benefit Obligation25,041 25,466 2,703 2,748 13,428 14,541 410 545 
Accumulated Benefit Obligation23,985 24,158 2,479 2,495 12,212 13,210 373 493 
Over (Under) Funded Status
Projected Benefit Obligation$2,903 88 (2,703)(2,748)558 (1,900)(410)(545)
Accumulated Benefit Obligation3,959 1,396 (2,479)(2,495)1,774 (569)(373)(493)
Plans with accumulated benefit obligations in excess of plan assets have an accumulated benefit obligation, projected benefit obligation and plan assets of $3.9 billion, $4.2 billion and $0.3 billion, respectively, at the end of 2021, and $8.8 billion, $9.8 billion and $4.4 billion, respectively, at the end of 2020.

The following table displays the projected future benefit payments from the Company’s retirement and other benefit plans:
(Dollars in Millions)202220232024202520262027-2031
Projected future benefit payments
Retirement plans$1,317 1,386 1,421 1,496 1,572 9,279 
Other benefit plans $447 459 472 485 434 2,379 

The following table displays the projected future minimum contributions to the unfunded retirement plans. These amounts do not include any discretionary contributions that the Company may elect to make in the future.
(Dollars in Millions)202220232024202520262027-2031
Projected future contributions$114 119 126 133 139 794 


Each pension plan is overseen by a local committee or board that is responsible for the overall administration and investment of the pension plans. In determining investment policies, strategies and goals, each committee or board considers factors
including, local pension rules and regulations; local tax regulations; availability of investment vehicles (separate accounts, commingled accounts, insurance funds, etc.); funded status of the plans; ratio of actives to retirees; duration of liabilities; and other relevant factors including: diversification, liquidity of local markets and liquidity of base currency. A majority of the Company’s pension funds are open to new entrants and are expected to be on-going plans. Permitted investments are primarily liquid and/or listed, with little reliance on illiquid and non-traditional investments such as hedge funds.

The Company’s retirement plan asset allocation at the end of 2021 and 2020 and target allocations for 2022 are as follows:
Percent of
Plan Assets		Target
Allocation
 202120202022
Worldwide Retirement Plans
Equity securities65 %66 %61 %
Debt securities35 34 39 
Total plan assets100 %100 %100 %
Determination of Fair Value of Plan Assets
The Plan has an established and well-documented process for determining fair values. Fair value is based upon quoted market prices, where available. If listed prices or quotes are not available, fair value is based upon models that primarily use, as inputs, market-based or independently sourced market parameters, including yield curves, interest rates, volatilities, equity or debt prices, foreign exchange rates and credit curves.
While the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.
Valuation Hierarchy
The authoritative literature establishes a three-level hierarchy to prioritize the inputs used in measuring fair value. The levels within the hierarchy are described in the table below with Level 1 having the highest priority and Level 3 having the lowest.
The Net Asset Value (NAV) is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
Following is a description of the valuation methodologies used for the investments measured at fair value.
•Short-term investment funds — Cash and quoted short-term instruments are valued at the closing price or the amount held on deposit by the custodian bank. Other investments are through investment vehicles valued using the NAV provided by the administrator of the fund. The NAV is a quoted price in a market that is not active and classified as Level 2.
•Government and agency securities — A limited number of these investments are valued at the closing price reported on the major market on which the individual securities are traded. Where quoted prices are available in an active market, the investments are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available for the specific security, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. When quoted market prices for a security are not available in an active market, they are classified as Level 2.
•Debt instruments — A limited number of these investments are valued at the closing price reported on the major market on which the individual securities are traded. Where quoted prices are available in an active market, the investments are classified as Level 1. If quoted market prices are not available for the specific security, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows and are classified as Level 2. Level 3 debt instruments are priced based on unobservable inputs.
•Equity securities — Equity securities are valued at the closing price reported on the major market on which the individual securities are traded. Substantially all equity securities are classified within Level 1 of the valuation hierarchy.
•Commingled funds — These investment vehicles are valued using the NAV provided by the fund administrator. Assets in the Level 2 category have a quoted market price.
•Other assets — Other assets are represented primarily by limited partnerships. These investment vehicles are valued using the NAV provided by the fund administrator. Other assets that are exchange listed and actively traded are classified as Level 1, while inactively traded assets are classified as Level 2.

The following table sets forth the Retirement Plans' investments measured at fair value as of December 31, 2021 and December 31, 2020:
Quoted Prices
in Active
Markets for
Identical Assets		Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs(1)
Investments Measured at Net Asset Value
 (Level 1)(Level 2)(Level 3)Total Assets
(Dollars in Millions)2021202020212020202120202021202020212020
Short-term investment funds$102 127 1,033 763 — — — — 1,135 890 
Government and agency securities— — 7,016 5,023 — — — — 7,016 5,023 
Debt instruments— — 3,505 3,931 — — — — 3,505 3,931 
Equity securities14,107 14,375 2 2 — — — — 14,109 14,377 
Commingled funds— — 5,496 4,690 105 160 8,708 8,236 14,309 13,086 
Other assets— — 34 11 15 21 1,807 856 1,856 888 
Investments at fair value$14,209 14,502 17,086 14,420 120 181 10,515 9,092 41,930 38,195 

(1) The activity for the Level 3 assets is not significant for all years presented.

The Company's Other Benefit Plans are unfunded except for U.S. commingled funds (Level 2) of $102 million and $90 million at December 31, 2021 and December 31, 2020, respectively.
The fair value of Johnson & Johnson Common Stock directly held in plan assets was $385 million (0.9% of total plan assets) at December 31, 2021 and $946 million (2.5% of total plan assets) at December 31, 2020.
v3.22.0.1
Savings Plan
 12 Months Ended
Jan. 02, 2022
Savings Plan [Abstract]  
Savings Plan Savings PlanThe Company has voluntary 401(k) savings plans designed to enhance the existing retirement programs covering eligible employees. The Company matches a percentage of each employee’s contributions consistent with the provisions of the plan for which he/she is eligible. Total Company matching contributions to the plans were $256 million, $243 million and $235 million in fiscal years 2021, 2020 and 2019, respectively.
v3.22.0.1
Capital and Treasury Stock
 12 Months Ended
Jan. 02, 2022
Equity [Abstract]  
Capital and Treasury Stock Capital and Treasury Stock
Changes in treasury stock were:
Treasury Stock
(Amounts in Millions Except Treasury Stock Shares in Thousands)SharesAmount
Balance at December 30, 2018457,519 $34,362 
Employee compensation and stock option plans(20,053)(2,691)
Repurchase of common stock49,870 6,746 
Balance at December 29, 2019487,336 38,417 
Employee compensation and stock option plans(21,765)(3,148)
Repurchase of common stock21,760 3,221 
Balance at January 3, 2021487,331 38,490 
Employee compensation and stock option plans(17,399)(2,847)
Repurchase of common stock20,946 3,456 
Balance at January 2, 2022490,878 $39,099 

Aggregate shares of common stock issued were approximately 3,119,843,000 shares at the end of fiscal years 2021, 2020 and 2019.

Cash dividends paid were $4.19 per share in fiscal year 2021, compared with dividends of $3.98 per share in fiscal year 2020, and $3.75 per share in fiscal year 2019.
On January 4, 2022, the Board of Directors declared a regular cash dividend of $1.06 per share, payable on March 8, 2022 to shareholders of record as of February 22, 2022.
On December 17, 2018, the Company announced that its Board of Directors approved a share repurchase program, authorizing the Company to purchase up to $5.0 billion of the Company's shares of common stock. This share repurchase program was completed as of September 29, 2019.
v3.22.0.1
Accumulated Other Comprehensive Income (Loss)
 12 Months Ended
Jan. 02, 2022
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss)
Components of other comprehensive income (loss) consist of the following:
(Dollars in Millions)Foreign
Currency Translation		Gain/(Loss) On SecuritiesEmployee Benefit PlansGain/
(Loss) On
Derivatives & Hedges		Total
Accumulated
Other
Comprehensive Income (Loss)
December 30, 2018$(8,869)— (6,158)(195)(15,222)
Net 2019 changes164 — (733)(100)(669)
December 29, 2019(8,705)— (6,891)(295)(15,891)
Net 2020 changes(233)1 (66)947 649 
January 3, 2021(8,938)1 (6,957)652 (15,242)
Net 2021 changes(1,079)(4)4,255 (988)2,184 
January 2, 2022$(10,017)(3)(2,702)(336)(13,058)


Amounts in accumulated other comprehensive income are presented net of the related tax impact. Foreign currency translation is not adjusted for income taxes where it relates to permanent investments in international subsidiaries. For additional details on comprehensive income see the Consolidated Statements of Comprehensive Income.

Details on reclassifications out of Accumulated Other Comprehensive Income:
Gain/(Loss) On Securities - reclassifications released to Other (income) expense, net.
Employee Benefit Plans - reclassifications are included in net periodic benefit cost. See Note 10 for additional details.
Gain/(Loss) On Derivatives & Hedges - reclassifications to earnings are recorded in the same account as the hedged transaction. See Note 6 for additional details.
v3.22.0.1
International Currency Translation
 12 Months Ended
Jan. 02, 2022
Foreign Currency Translation [Abstract]  
International Currency Transalation International Currency Translation
For translation of its subsidiaries operating in non-U.S. Dollar currencies, the Company has determined that the local currencies of its international subsidiaries are the functional currencies except those in highly inflationary economies, which are defined as those which have had compound cumulative rates of inflation of 100% or more during the past three years, or where a substantial portion of its cash flows are not in the local currency. For the majority of the Company's subsidiaries the local currency is the functional currency.
In consolidating international subsidiaries, balance sheet currency effects are recorded as a component of accumulated other comprehensive income. The other current and non-current assets line within the Statement of Cash flows includes the impact of foreign currency translation. This equity account includes the results of translating certain balance sheet assets and liabilities at current exchange rates and some accounts at historical rates, except for those located in highly inflationary economies, (Argentina and Venezuela). The translation of balance sheet accounts for highly inflationary economies are reflected in the operating results.
A rollforward of the changes during fiscal years 2021, 2020 and 2019 for foreign currency translation adjustments is included in Note 13.
Net currency transaction gains and losses included in Other (income) expense were losses of $236 million, $209 million and $267 million in fiscal years 2021, 2020 and 2019, respectively.
v3.22.0.1
Earnings Per Share
 12 Months Ended
Jan. 02, 2022
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The following is a reconciliation of basic net earnings per share to diluted net earnings per share for the fiscal years ended January 2, 2022, January 3, 2021 and December 29, 2019:
(In Millions Except Per Share Amounts)202120202019
Basic net earnings per share$7.93 5.59 5.72 
Average shares outstanding — basic2,632.1 2,632.8 2,645.1 
Potential shares exercisable under stock option plans138.0 118.3 136.3 
Less: shares repurchased under treasury stock method(96.1)(80.4)(97.8)
Convertible debt shares— — 0.7 
Adjusted average shares outstanding — diluted2,674.0 2,670.7 2,684.3 
Diluted net earnings per share$7.81 5.51 5.63 

The diluted net earnings per share calculation for fiscal year 2021 included all shares related to stock options, as the exercise price of these options was less than the average market value of the Company's stock. As of January 2, 2022, the Company did not have convertible debt.

The diluted net earnings per share calculation for fiscal year 2020 excluded 18 million shares related to stock options, as the exercise price of these options was greater than the average market value of the Company's stock. As of January 3, 2021, the Company did not have convertible debt.

The diluted net earnings per share calculation for fiscal year 2019 excluded an insignificant number of shares related to stock options, as the exercise price of these options was greater than the average market value of the Company’s stock. The diluted net earnings per share calculation for fiscal year 2019 included the dilutive effect of convertible debt that was offset by the related reduction in interest expense of $1 million after-tax.
v3.22.0.1
Common Stock, Stock Option Plans and Stock Compensation Agreements
 12 Months Ended
Jan. 02, 2022
Share-based Payment Arrangement [Abstract]  
Common Stock, Stock Option Plans and Stock Compensation Agreements Common Stock, Stock Option Plans and Stock Compensation Agreements
At January 2, 2022, the Company had 2 stock-based compensation plans. The shares outstanding are for contracts under the Company's 2005 Long-Term Incentive Plan and the 2012 Long-Term Incentive Plan. The 2005 Long-Term Incentive Plan expired April 26, 2012. All options and restricted shares granted subsequent to that date were under the 2012 Long-Term Incentive Plan. Under the 2012 Long-Term Incentive Plan, the Company may issue up to 650 million shares of common stock, plus any shares canceled, expired, forfeited, or not issued from the 2005 Long-Term Incentive Plan subsequent to April 26, 2012. Shares available for future grants under the 2012 Long-Term Incentive Plan were 240 million at the end of fiscal year 2021.
The compensation cost that has been charged against income for these plans was $1,135 million, $1,005 million and $977 million for fiscal years 2021, 2020 and 2019, respectively. The total income tax benefit recognized in the income statement for share-based compensation costs was $218 million, $210 million and $227 million for fiscal years 2021, 2020 and 2019, respectively. The Company also recognized additional income tax benefits of $223 million, $248 million and $209 million for fiscal years 2021, 2020 and 2019, respectively, for which options were exercised or restricted shares were vested. The total unrecognized compensation cost was $862 million, $804 million and $823 million for fiscal years 2021, 2020 and 2019,
respectively. The weighted average period for this cost to be recognized was 1.78 years, 1.76 years and 1.71 years for fiscal years 2021, 2020, and 2019, respectively. Share-based compensation costs capitalized as part of inventory were insignificant in all periods.
The Company settles employee benefit equity issuances with treasury shares. Treasury shares are replenished through market purchases throughout the year for the number of shares used to settle employee benefit equity issuances.
Stock Options
Stock options expire 10 years from the date of grant and vest over service periods that range from 6 months to 4 years. All options are granted at the average of the high and low prices of the Company’s Common Stock on the New York Stock Exchange on the date of grant.
The fair value of each option award was estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table. For 2021, 2020 and 2019 grants, expected volatility represents a blended rate of 10-year weekly historical overall volatility rate, and a 5-week average implied volatility rate based on at-the-money traded Johnson & Johnson options with a life of 2 years. For all grants, historical data is used to determine the expected life of the option. The risk-free rate was based on the U.S. Treasury yield curve in effect at the time of grant.

The average fair value of options granted was $20.86, $16.42 and $17.80, in fiscal years 2021, 2020 and 2019, respectively. The fair value was estimated based on the weighted average assumptions of:
202120202019
Risk-free rate0.83 %1.47 %2.56 %
Expected volatility18.59 %15.33 %16.27 %
Expected life (in years)7.07.07.0
Expected dividend yield2.50 %2.60 %2.80 %

A summary of option activity under the Plan as of January 2, 2022, January 3, 2021 and December 29, 2019, and changes during the years ending on those dates is presented below:
(Shares in Thousands)Outstanding SharesWeighted
Average Exercise Price		Aggregate
Intrinsic
Value
(Dollars in Millions)
Shares at December 30, 2018109,652 $98.29 $3,214 
Options granted19,745 131.94 
Options exercised(14,785)82.43 
Options canceled/forfeited(2,975)125.11 
Shares at December 29, 2019111,637 105.63 4,478 
Options granted20,723 151.41 
Options exercised(16,275)86.05 
Options canceled/forfeited(1,835)137.62 
Shares at January 3, 2021114,250 116.22 4,703 
Options granted18,525 164.62 
Options exercised(13,248)97.48 
Options canceled/forfeited(2,166)149.75 
Shares at January 2, 2022117,361 $125.36 $5,364 

The total intrinsic value of options exercised was $919 million, $1,021 million and $807 million in fiscal years 2021, 2020 and 2019, respectively.
The following table summarizes stock options outstanding and exercisable at January 2, 2022:
(Shares in Thousands)OutstandingExercisable
Exercise Price RangeOptions
Average Life(1)
Weighted Average Exercise PriceOptionsWeighted Average Exercise Price
$65.08-$90.44
16,007 1.6$81.9216,007 $81.92
$100.06-$101.87
22,647 3.6$101.0722,647 $101.07
$115.67-$129.51
24,543 5.6$122.5923,972 $122.43
$131.94-$151.41
36,304 7.6$142.23100 $140.72
$151.42-$164.62
17,860 9.1$164.6216 $164.62
 117,361 5.8$125.3662,742 $104.42
(1) Average contractual life remaining in years.
Stock options outstanding at January 3, 2021 and December 29, 2019 were 114,250 and an average life of 6.0 years and 111,637 and an average life of 6.0 years, respectively. Stock options exercisable at January 3, 2021 and December 29, 2019 were 61,289 at an average price of $96.97 and 60,761 at an average price of $88.88, respectively.
Restricted Share Units and Performance Share Units
The Company grants restricted share units which vest over service periods that range from 6 months to 3 years. The Company also grants performance share units, which are paid in shares of Johnson & Johnson Common Stock after the end of a three-year performance period. Whether any performance share units vest, and the amount that does vest, is tied to the completion of service periods that range from 6 months to 3 years and the achievement, over a three-year period, of three equally-weighted goals that directly align with or help drive long-term total shareholder return: operational sales, adjusted operational earnings per share, and relative total shareholder return. Beginning in fiscal 2020, performance shares were granted with two equally-weighted goals that directly align with or help drive long-term total shareholder return: adjusted operational earnings per share and relative total shareholder return. The number of shares actually earned at the end of the three-year period will vary, based only on actual performance, from 0% to 200% of the target number of performance share units granted.

A summary of the restricted share units and performance share units activity under the Plans as of January 2, 2022 is presented below:
(Shares in Thousands)Outstanding Restricted Share UnitsOutstanding Performance Share Units
Shares at January 3, 202114,998 2,236 
Granted4,981 741 
Issued(5,101)(610)
Canceled/forfeited/adjusted(756)(55)
Shares at January 2, 202214,122 2,312 
The average fair value of the restricted share units granted was $152.62, $139.58 and $121.31 in fiscal years 2021, 2020 and 2019, respectively, using the fair market value at the date of grant. The fair value of restricted share units was discounted for dividends, which are not paid on the restricted share units during the vesting period. The fair value of restricted share units issued was $611 million, $650 million and $586 million in 2021, 2020 and 2019, respectively.
The weighted average fair value of the performance share units granted was $179.35, $160.54 and $124.67 in fiscal years 2021, 2020 and 2019, calculated using the weighted average fair market value for each of the component goals at the date of grant. 
The fair values for the sales and earnings per share goals of each performance share unit were estimated on the date of grant using the fair market value of the shares at the time of the award discounted for dividends, which are not paid on the performance share units during the vesting period. The fair value for the relative total shareholder return goal of each performance share unit was estimated on the date of grant using the Monte Carlo valuation model. The fair value of performance share units issued was $83 million, $91 million and $119 million in fiscal years 2021, 2020 and 2019, respectively.
v3.22.0.1
Segments of Business and Geographic Areas
 12 Months Ended
Jan. 03, 2021
Segment Reporting [Abstract]  
Segments of Business and Geographic Areas Segments of Business* and Geographic Areas
 Sales to Customers % Change
(Dollars in Millions)202120202019’21 vs. ’20’20 vs. ’19
Consumer Health   
OTC
     U.S.$2,594 2,460 2,010 5.4 %22.4 
     International2,634 2,364 2,434 11.4 (2.9)
     Worldwide 5,227 4,824 4,444 8.4 8.5 
Skin Health/Beauty
     U.S.2,400 2,350 2,392 2.1 (1.7)
     International2,141 2,100 2,201 1.9 (4.6)
     Worldwide 4,541 4,450 4,593 2.0 (3.1)
Oral Care
     U.S.637 683 621 (6.7)9.9 
     International1,008 958 906 5.1 5.7 
     Worldwide 1,645 1,641 1,528 0.2 7.4 
Baby Care
     U.S.378 376 362 0.5 3.7 
     International1,188 1,141 1,313 4.1 (13.1)
     Worldwide 1,566 1,517 1,675 3.2 (9.4)
Women's Health
     U.S.13 13 12 (1.6)8.2 
     International905 888 974 1.8 (8.8)
     Worldwide 917 901 986 1.8 (8.6)
Wound Care/Other
     U.S.495 480 441 3.1 8.9 
     International243 240 230 1.7 4.1 
     Worldwide 739 720 671 2.6 7.2 
TOTAL CONSUMER HEALTH
     U.S.6,516 6,362 5,839 2.4 9.0 
     International8,119 7,691 8,059 5.6 (4.6)
     Worldwide 14,635 14,053 13,898 4.1 1.1 


PHARMACEUTICAL
Immunology
     U.S.10,843 10,175 9,641 6.6 5.5 
     International5,907 4,880 4,309 21.0 13.2 
     Worldwide 16,750 15,055 13,950 11.3 7.9 
     REMICADE®
     U.S.2,019 2,508 3,079 (19.5)(18.5)
     U.S. Exports236 346 294 (31.9)18.0 
     International935 893 1,007 4.8 (11.4)
     Worldwide 3,190 3,747 4,380 (14.9)(14.4)
     SIMPONI / SIMPONI ARIA®
     U.S.1,127 1,155 1,159 (2.4)(0.3)
     International1,148 1,088 1,029 5.5 5.8 
     Worldwide 2,276 2,243 2,188 1.4 2.6 
     STELARA®
     U.S.5,938 5,240 4,346 13.3 20.6 
     International3,196 2,467 2,015 29.6 22.4 
     Worldwide 9,134 7,707 6,361 18.5 21.1 
     TREMFYA®
     U.S.1,503 926 764 62.3 21.3 
     International624 421 248 48.2 69.9 
     Worldwide 2,127 1,347 1,012 57.9 33.2 
     OTHER IMMUNOLOGY
     U.S.21 — — **— 
     International3 11 10 (73.3)6.4 
     Worldwide 24 11 10 **6.4 
Infectious Diseases
     U.S.2,249 1,735 1,597 29.7 8.6 
     International3,612 1,839 1,815 96.3 1.3 
     Worldwide 5,861 3,574 3,413 64.0 4.7 
     COVID-19 VACCINE
U.S.634 — — ****
International1,751 — — ****
Worldwide2,385 — — ****
     EDURANT® / rilpivirine
     U.S.41 44 50 (7.6)(11.2)
     International953 920 812 3.6 13.3 
     Worldwide 994 964 861 3.1 11.9 
     PREZISTA® / PREZCOBIX® / REZOLSTA® / SYMTUZA®
     U.S.1,508 1,587 1,422 (4.9)11.6 
     International575 597 689 (3.6)(13.4)
     Worldwide 2,083 2,184 2,110 (4.6)3.5 
     OTHER INFECTIOUS DISEASES
     U.S.66 104 126 (36.0)(17.6)
     International333 323 315 3.0 2.6 
     Worldwide 399 427 441 (6.5)(3.2)
Neuroscience
     U.S.3,347 3,091 2,919 8.3 5.9 
     International3,664 3,457 3,409 6.0 1.4 
     Worldwide 7,011 6,548 6,328 7.1 3.5 
     CONCERTA® / methylphenidate
     U.S.172 183 233 (5.8)(21.4)
     International495 439 463 12.8 (5.1)
     Worldwide 667 622 696 7.3 (10.6)
       INVEGA SUSTENNA® / XEPLION® / INVEGA TRINZA® / TREVICTA®
     U.S.2,550 2,314 2,107 10.2 9.8 
     International1,472 1,339 1,224 10.0 9.4 
     Worldwide 4,022 3,653 3,330 10.1 9.7 
     RISPERDAL CONSTA®
     U.S.287 296 314 (2.9)(5.9)
     International305 346 374 (11.8)(7.5)
     Worldwide 592 642 688 (7.7)(6.8)
     OTHER NEUROSCIENCE
     U.S.338 298 266 13.3 12.4 
     International1,391 1,334 1,349 4.3 (1.1)
     Worldwide 1,729 1,632 1,614 6.0 1.1 
Oncology
     U.S.5,958 5,092 4,299 17.0 18.5 
     International8,590 7,275 6,393 18.1 13.8 
     Worldwide 14,548 12,367 10,692 17.6 15.7 
     DARZALEX®
     U.S.3,169 2,232 1,567 42.0 42.4 
     International2,854 1,958 1,430 45.8 36.9 
     Worldwide 6,023 4,190 2,998 43.8 39.8 
     ERLEADA®
     U.S.813 583 297 39.3 96.1
     International478 176 35  * ** *
     Worldwide1,291 760 332 70.0 * *
     IMBRUVICA®
     U.S.1,747 1,821 1,555 (4.0)17.1 
     International2,622 2,307 1,856 13.6 24.3 
     Worldwide 4,369 4,128 3,411 5.8 21.0 
     ZYTIGA® /abiraterone acetate
     U.S.119 373 810 (68.1)(54.0)
     International2,178 2,097 1,985 3.9 5.6 
     Worldwide 2,297 2,470 2,795 (7.0)(11.6)
     OTHER ONCOLOGY
     U.S.110 83 70 31.7 18.6 
     International458 738 1,087 (37.9)(32.1)
     Worldwide 568 821 1,158 (30.8)(29.1)
Pulmonary Hypertension
     U.S.2,365 2,133 1,684 10.9 26.6 
     International1,085 1,015 939 6.9 8.2 
     Worldwide 3,450 3,148 2,623 9.6 20.0 
     OPSUMIT®
     U.S.1,147 1,008 766 13.7 31.7 
     International672 631 562 6.6 12.3 
     Worldwide 1,819 1,639 1,327 11.0 23.5 
     UPTRAVI®
     U.S.1,056 955 714 10.5 33.8 
     International181 138 105 31.1 30.9 
     Worldwide 1,237 1,093 819 13.1 33.5 
     OTHER
     U.S.163 169 205 (3.7)(17.6)
     International232 247 272 (5.9)(9.2)
     Worldwide 395 416 476 (5.0)(12.8)
Cardiovascular / Metabolism / Other
     U.S.3,192 3,509 3,734 (9.0)(6.0)
     International1,268 1,369 1,458 (7.4)(6.1)
     Worldwide 4,460 4,878 5,192 (8.6)(6.0)
     XARELTO®
     U.S.2,438 2,345 2,313 4.0 1.4 
     International— — — — — 
     Worldwide 2,438 2,345 2,313 4.0 1.4 
     INVOKANA® / INVOKAMET®
     U.S.308 564 536 (45.4)5.2 
     International254 231 199 9.9 16.3 
     Worldwide 563 795 735 (29.3)8.2 
     PROCRIT® / EPREX®
     U.S.223 277 505 (19.7)(45.1)
     International256 274 285 (6.8)(3.8)
     Worldwide 479 552 790 (13.3)(30.2)
     OTHER
     U.S.223 323 380 (31.0)(15.1)
     International758 864 974 (12.2)(11.3)
     Worldwide 981 1,186 1,353 (17.3)(12.4)
TOTAL PHARMACEUTICAL
     U.S.27,954 25,735 23,874 8.6 7.8 
     International24,126 19,837 18,324 21.6 8.3 
     Worldwide 52,080 45,572 42,198 14.3 8.0 
MEDICAL DEVICES
Interventional Solutions
     U.S.1,836 1,452 1,443 26.4 0.6 
     International2,135 1,594 1,554 34.0 2.6 
     Worldwide 3,971 3,046 2,997 30.4 1.6 
Orthopaedics
     U.S.5,126 4,779 5,319 7.3 (10.2)
     International3,462 2,984 3,520 16.0 (15.2)
     Worldwide 8,588 7,763 8,839 10.6 (12.2)
     HIPS
     U.S.883 793 863 11.4 (8.2)
     International602 487 575 23.6 (15.3)
     Worldwide 1,485 1,280 1,438 16.0 (11.0)
     KNEES
     U.S.787 743 889 5.9 (16.4)
     International538 427 591 26.1 (27.8)
     Worldwide 1,325 1,170 1,480 13.3 (21.0)
     TRAUMA
     U.S.1,819 1,648 1,652 10.4 (0.2)
     International1,066 966 1,068 10.4 (9.6)
     Worldwide 2,885 2,614 2,720 10.4 (3.9)
     SPINE, SPORTS & OTHER
     U.S.1,637 1,595 1,915 2.6 (16.7)
     International1,256 1,104 1,286 13.8 (14.1)
     Worldwide 2,893 2,699 3,201 7.2 (15.7)
Surgery
     U.S.3,867 3,249 3,828 19.0 (15.1)
     International5,945 4,983 5,673 19.3 (12.2)
     Worldwide 9,812 8,232 9,501 19.2 (13.4)
     ADVANCED
     U.S.1,761 1,535 1,637 14.9 (6.2)
     International2,861 2,304 2,458 24.1 (6.2)
     Worldwide 4,622 3,839 4,095 20.4 (6.2)
     GENERAL
     U.S.2,105 1,714 2,192 22.7 (21.8)
     International3,085 2,679 3,215 15.2 (16.7)
     Worldwide 5,190 4,392 5,406 18.1 (18.8)
Vision
     U.S.1,857 1,557 1,794 19.3 (13.2)
     International2,831 2,362 2,830 19.8 (16.5)
     Worldwide 4,688 3,919 4,624 19.6 (15.2)
     CONTACT LENSES / OTHER
     U.S.1,398 1,213 1,304 15.2 (7.0)
     International2,043 1,781 2,088 14.7 (14.7)
     Worldwide 3,440 2,994 3,392 14.9 (11.7)
     SURGICAL
     U.S.459 344 490 33.5 (29.7)
     International788 581 742 35.7 (21.7)
     Worldwide 1,248 925 1,232 34.9 (24.9)
TOTAL MEDICAL DEVICES   
     U.S.12,686 11,036 12,384 14.9 (10.9)
     International14,374 11,923 13,579 20.6 (12.2)
     Worldwide 27,060 22,959 25,963 17.9 (11.6)
WORLDWIDE   
     U.S.47,156 43,133 42,097 9.3 2.5 
     International46,619 39,451 39,962 18.2 (1.3)
     Worldwide $93,775 82,584 82,059 13.6 %0.6 
*Certain prior year amounts have been reclassified to conform to current year presentation
**Percentage greater than 100% or not meaningful

 Income (Loss) Before TaxIdentifiable Assets
(Dollars in Millions)
2021 (3)
2020 (4)
2019 (5)
20212020
Consumer Health$1,294 (1,064)2,061 $25,081 27,355 
Pharmaceutical18,181 15,462 8,816 64,376 66,158 
Medical Devices4,373 3,044 7,286 53,372 49,578 
Total23,848 17,442 18,163 142,829 143,091 
Less: Expense not allocated to segments (1)
1,072 945 835 
General corporate (2)
39,189 31,803 
Worldwide total$22,776 16,497 17,328 $182,018 174,894 

Additions to Property,
Plant & Equipment		Depreciation and
Amortization
(Dollars in Millions)202120202019202120202019
Consumer Health$331 248 328 $759 785 765 
Pharmaceutical1,198 863 950 4,029 4,006 3,910 
Medical Devices1,933 1,980 1,912 2,286 2,140 2,014 
Segments total3,462 3,091 3,190 7,074 6,931 6,689 
General corporate190 256 308 316 300 320 
Worldwide total$3,652 3,347 3,498 $7,390 7,231 7,009 
 Sales to Customers
Long-Lived Assets (6)
(Dollars in Millions)20212020201920212020
United States$47,156 43,133 42,097 $48,586 49,951 
Europe23,594 18,980 18,466 43,257 49,363 
Western Hemisphere excluding U.S. 5,750 5,335 5,941 2,708 2,734 
Asia-Pacific, Africa17,275 15,136 15,555 5,035 5,484 
Segments total93,775 82,584 82,059 99,586 107,532 
General corporate1,014 1,029 
Other non long-lived assets81,418 66,333 
Worldwide total$93,775 82,584 82,059 $182,018 174,894 
See Note 1 for a description of the segments in which the Company operates.
Export sales are not significant. In fiscal year 2021, the Company utilized three wholesalers distributing products for all three segments that represented approximately 14.0%, 11.0% and 11.0% of the total consolidated revenues. In fiscal year 2020, the Company had three wholesalers distributing products for all three segments that represented approximately 16.0%, 12.0% and 12.0% of the total consolidated revenues. In fiscal year 2019, the Company had three wholesalers distributing products for all three segments that represented approximately 15.0%, 12.0%, and 11.0% of the total consolidated revenues.
(1)Amounts not allocated to segments include interest (income) expense and general corporate (income) expense.
(2)General corporate includes cash, cash equivalents and marketable securities.
(3)Consumer Health includes:
•Litigation expense of $1.6 billion, primarily talc related reserves
•A restructuring related charge of $0.1 billion
Pharmaceutical includes:
•Litigation expense of $0.6 billion, primarily related to Risperdal
•Divestiture gains of $0.6 billion
•Gains on securities of $0.5 billion
•A restructuring related charge of $0.1 billion
Medical Devices includes:
•A restructuring related charge of $0.3 billion
•An in-process research and development expense of $0.9 billion
•A Medical Device Regulation charge of $0.2 billion
•Litigation expense of $0.1 billion

(4)    Consumer Health includes:
•Litigation expense of $3.9 billion, primarily talc related reserves and certain settlements.
Pharmaceutical includes:
•Litigation expense of $0.8 billion, primarily related to the agreement in principle to settle opioid litigation
•An unrealized gain on securities of $0.5 billion
•A restructuring related charge of $0.1 billion
Medical Devices includes:
•A contingent consideration reversal of $1.1 billion related to the timing of certain developmental milestones associated with the Auris Health acquisition.
•Litigation expense of $0.3 billion
•A restructuring related charge of $0.3 billion
•An in-process research and development expense of $0.2 billion
•A Medical Device Regulation charge of $0.1 billion
(5)     Consumer Health includes:
•A gain of $0.3 billion related to the Company's previously held equity investment in DR. CI:LABO
•Litigation expense of $0.4 billion
•A restructuring related charge of $0.1 billion
Pharmaceutical includes:
•Litigation expense of $4.3 billion of which $4.0 billion is related to the agreement in principle to settle opioid litigation
•An in-process research and development expense of $0.9 billion related to the Alios asset
•A research and development expense of $0.3 billion for an upfront payment related to argenx
•An unrealized gain on securities of $0.6 billion
•Actelion acquisition and integration related costs of $0.2 billion
•A restructuring charge of $0.1 billion
Medical Devices includes:
•A gain of $2.0 billion from the divestiture of the ASP business
•A restructuring related charge of $0.4 billion
•Litigation expense of $0.4 billion
•Auris Health acquisition and integration related costs of $0.1 billion
(6) Long-lived assets include property, plant and equipment, net for fiscal years 2021, and 2020 of $18,962 and $18,766, respectively, and intangible assets and goodwill, net for fiscal years 2021 and 2020 of $81,638 and $89,795, respectively.
v3.22.0.1
Acquisitions and Divestitures
 12 Months Ended
Jan. 03, 2021
Business Combination and Asset Acquisition [Abstract]  
Acquisitions and Divestitures Acquisitions and Divestitures
During fiscal year 2021, the Company did not make any material acquisitions.
During fiscal year 2020, certain businesses were acquired for $7.3 billion in cash and $0.4 billion of liabilities assumed. These acquisitions were accounted for using the acquisition method and, accordingly, results of operations have been included in the financial statements from their respective dates of acquisition.
The excess of purchase price over the estimated fair value of tangible assets acquired amounted to $7.5 billion and has been assigned to identifiable intangible assets, with any residual recorded to goodwill.
The fiscal year 2020 acquisitions primarily included: all rights to the investigational compound bermekimab, which has multiple dermatological indications, along with certain employees from XBiotech Inc. (XBiotech), Momenta Pharmaceuticals, Inc. (Momenta), a company that discovers and develops novel therapies for immune-mediated diseases and the outstanding shares in Verb Surgical Inc., a company with significant robotics and data science capabilities.
During the fiscal first quarter of 2020, the Company completed the acquisition of all rights to the investigational compound bermekimab, which has multiple dermatological indications, along with certain employees from XBiotech Inc., for a purchase price of $0.8 billion. The fair value of the acquisition was allocated primarily to non-amortizable intangible assets, primarily IPR&D, for $0.8 billion applying a probability of success factor that ranged from 20% to 60% to reflect inherent development, regulatory and commercial risk for the different indications. The discount rate applied was approximately 16%. XBiotech may be eligible to receive additional payments upon the receipt of certain commercialization authorizations. The transaction was accounted for as a business combination and included in the Pharmaceutical segment. On January 28, 2022, subsequent to the fiscal year 2021, additional information regarding efficacy became available which led the Company to the decision to terminate the development of bermekimab for Atopic Dermatitis (AD). The Company recorded an intangible asset impairment charge of approximately $0.6 billion related to an in-process research and development asset, bermekimab (JnJ-77474462), an investigational drug for the treatment of AD and Hidradenitis Suppurativa (HS). The impairment charge is related to the AD indication and is a nonrecognized subsequent event and will be reflected in the first quarter 2022 financial statements. The Company acquired all rights to bermekimab from XBiotech, Inc. in fiscal year 2020.
Additionally, in the fiscal first quarter of 2020, the Company completed the acquisition of all outstanding shares in Verb Surgical Inc., a company with significant robotics and data science capabilities, including those shares previously held by Verily. The transaction was accounted for as a business combination and included in the Medical Devices segment. The fair value of the acquisition was allocated primarily to non-amortizable intangible assets, primarily IPR&D, for $0.4 billion, goodwill for $0.2 billion, other assets of $0.2 billion and liabilities assumed of $0.3 billion. The fair value of the Company's previously held equity investment in Verb Surgical Inc. was $0.4 billion.
On October 1, 2020, the Company completed the acquisition of Momenta for a purchase price of approximately $6.1 billion, net of cash acquired. The fair value of the acquisition was allocated primarily to non-amortizable intangible assets (IPR&D) of $6.0 billion, goodwill of $1.2 billion, other assets of $0.5 billion and liabilities of $1.6 billion. The assets acquired are intended to address substantial unmet medical need in maternal-fetal disorders, neuro-inflammatory disorders, rheumatology, dermatology and autoimmune hematology. Depending on the asset, probability of success factors ranging from 20% to 77% were used in the fair value calculation to reflect inherent development and regulatory risk of the IPR&D. The discount rate applied was approximately 13%. The goodwill is primarily attributable to synergies expected to arise from the business acquisition and is not expected to be deductible for tax purposes. The transaction was accounted for as a business combination and included in the Pharmaceutical segment.
During fiscal year 2019 certain businesses were acquired for $5.8 billion in cash and $1.4 billion of liabilities assumed. These acquisitions were accounted for using the acquisition method and, accordingly, results of operations have been included in the financial statements from their respective dates of acquisition.
The excess of purchase price over the estimated fair value of tangible assets acquired amounted to $6.8 billion and has been assigned to identifiable intangible assets, with any residual recorded to goodwill.
The fiscal year 2019 acquisitions primarily included DR. CI:LABO, a Japanese company focused on the marketing, development and distribution of a broad range of dermocosmetic, cosmetic and skincare products and Auris Health, Inc. a
privately held developer of robotic technologies, initially focused in lung cancer, with an U.S. FDA-cleared platform currently used in bronchoscopic diagnostic and therapeutic procedures.
On January 17, 2019, the Company acquired DR. CI:LABO, a Japanese company focused on the marketing, development and distribution of a broad range of dermocosmetic, cosmetic and skincare products for a total purchase price of approximately ¥230 billion, which equates to approximately $2.1 billion, using the exchange rate of 109.06 Japanese Yen to each U.S. Dollar on January 16, 2019. Additionally, in the fiscal first quarter of 2019, the Company recognized a pre-tax gain recorded in Other (income) expense, net, of approximately $0.3 billion related to the Company's previously held equity investment in DR. CI:LABO.
The Company treated this transaction as a business combination and included it in the Consumer Health segment. During the fiscal first quarter of 2020, the Company finalized the purchase price allocation. The final fair value of the acquisition was allocated primarily to amortizable intangible assets for $1.5 billion, goodwill for $1.2 billion and liabilities of $0.4 billion. The amortizable intangible assets were comprised of brand/trademarks and customer relationships with a weighted average life of 15.3 years. The goodwill is primarily attributable to synergies expected to arise from the business acquisition and is not expected to be deductible for tax purposes.
On April 1, 2019 the Company completed the acquisition of Auris Health, Inc. for approximately $3.4 billion, net of cash acquired. Additional contingent payments of up to $2.35 billion, in the aggregate, may be payable upon reaching certain predetermined milestones. Auris Health was a privately held developer of robotic technologies, initially focused in lung cancer, with a U.S. FDA-cleared platform currently used in bronchoscopic diagnostic and therapeutic procedures. The Company treated this transaction as a business combination and included it in the Medical Devices segment. The fair value of the acquisition was allocated primarily to amortizable and non-amortizable intangible assets, primarily IPR&D for $3.0 billion, goodwill for $2.0 billion, marketable securities of $0.2 billion and liabilities assumed of $1.8 billion, which includes the fair value of the contingent payments mentioned above. The goodwill is primarily attributable to synergies expected to arise from the business acquisition and is not expected to be deductible for tax purposes. During the fiscal second quarter of 2020, the Company finalized the purchase price allocation. During fiscal 2020, the Company recorded Other income of approximately $1.1 billion for the reversal of all of the contingent consideration related to the timing of certain developmental and commercial milestones, which are not expected to be met based on the Company’s current timelines. During the fiscal third quarter of 2020, the Company recorded a partial IPR&D impairment charge of $0.1 billion related to timing and progression of the digital surgery platforms. In the fiscal third quarter of 2021, the Company recorded a partial IPR&D charge of $0.9 billion primarily related to expected development delays in the general surgery digital robotics platform (Ottava). A probability of success factor ranging from 18% to 66% across Ottava sub-platforms, was used in the fair value calculation to reflect inherent regulatory and commercial risk of the contingent payments and IPR&D. The discount rate applied was approximately 9.5%.
In accordance with U.S. GAAP standards related to business combinations, and goodwill and other intangible assets, supplemental pro forma information for fiscal years 2021, 2020 and 2019 is not provided, as the impact of the aforementioned acquisitions did not have a material effect on the Company’s results of operations, cash flows or financial position.

Divestitures
During fiscal year 2021, in separate transactions, the Company divested two brands outside the U.S. within the Pharmaceutical segment. The Company recognized a pre-tax gain recorded in Other (income) expense, net, of approximately $0.6 billion.
During fiscal year 2020, the Company sold 11.8 million shares of Idorsia LTD (Idorsia), or its 8.3% ownership in the company at that time. The transaction resulted in gross proceeds of approximately CHF 337 million ($357 million) based on a sales price of CHF 28.55/share and resulted in an immaterial net loss. At the end of fiscal 2020, the Company had rights to approximately 38.7 million shares through a convertible loan with a principal amount of CHF 445 million (due June 2027). During fiscal year 2021, the Company converted CHF 110 million ($120 million) of this loan into approximately 9.6 million shares of Idorsia which were reflected at fair value as of January 2, 2022. During the fiscal third quarter of 2021, the Company's undrawn credit facility with Idorsia was terminated.
During fiscal year 2019, the Company divested its ASP business to Fortive Corporation for an aggregate value of approximately $2.8 billion, consisting of $2.7 billion of cash proceeds and $0.1 billion of retained net receivables. The Company recognized a pre-tax gain recorded in Other ( income) expense, net, of approximately $2.0 billion.
v3.22.0.1
Legal Proceedings
 12 Months Ended
Jan. 02, 2022
Commitments and Contingencies Disclosure [Abstract]  
Legal Proceedings Legal ProceedingsJohnson & Johnson and certain of its subsidiaries are involved in various lawsuits and claims regarding product liability; intellectual property; commercial; indemnification and other matters; governmental investigations; and other legal proceedings that arise from time to time in the ordinary course of their business. Due to the ongoing impacts of the COVID-19 pandemic, certain trials have been rescheduled or delayed. The Company continues to monitor its legal proceedings as the situation evolves and in person trials resume.
The Company records accruals for loss contingencies associated with these legal matters when it is probable that a liability will be incurred, and the amount of the loss can be reasonably estimated. As of January 2, 2022, the Company has determined that the liabilities associated with certain litigation matters are probable and can be reasonably estimated. The Company has accrued for these matters and will continue to monitor each related legal issue and adjust accruals as might be warranted based on new information and further developments in accordance with ASC 450-20-25. For these and other litigation and regulatory matters discussed below for which a loss is probable or reasonably possible, the Company is unable to estimate the possible loss or range of loss beyond the amounts accrued. Amounts accrued for legal contingencies often result from a complex series of judgments about future events and uncertainties that rely heavily on estimates and assumptions including timing of related payments. The ability to make such estimates and judgments can be affected by various factors including, among other things, whether damages sought in the proceedings are unsubstantiated or indeterminate; scientific and legal discovery has not commenced or is not complete; proceedings are in early stages; matters present legal uncertainties; there are significant facts in dispute; procedural or jurisdictional issues; the uncertainty and unpredictability of the number of potential claims; ability to achieve comprehensive multi-party settlements; complexity of related cross-claims and counterclaims; and/or there are numerous parties involved. To the extent adverse awards, judgments or verdicts have been rendered against the Company, the Company does not record an accrual until a loss is determined to be probable and can be reasonably estimated.

In the Company’s opinion, based on its examination of these matters, its experience to date and discussions with counsel, the ultimate outcome of legal proceedings, net of liabilities accrued in the Company’s balance sheet, is not expected to have a material adverse effect on the Company’s financial position. However, the resolution of, or increase in accruals for, one or more of these matters in any reporting period may have a material adverse effect on the Company’s results of operations and cash flows for that period.

PRODUCT LIABILITY

Johnson & Johnson and certain of its subsidiaries are involved in numerous product liability claims and lawsuits involving multiple products. Claimants in these cases seek substantial compensatory and, where available, punitive damages. While the Company believes it has substantial defenses, it is not feasible to predict the ultimate outcome of litigation. From time to time, even if it has substantial defenses, the Company considers isolated settlements based on a variety of circumstances. The Company has established accruals for product liability claims and lawsuits in compliance with ASC 450-20 based on currently available information, which in some cases may be limited. The Company accrues an estimate of the legal defense costs needed to defend each matter when those costs are probable and can be reasonably estimated. For certain of these matters, the Company has accrued additional amounts such as estimated costs associated with settlements, damages and other losses. Product liability accruals can represent projected product liability for thousands of claims around the world, each in different litigation environments and with different fact patterns. Changes to the accruals may be required in the future as additional information becomes available.

The most significant of these cases include: the DePuy ASR™ XL Acetabular System and DePuy ASR™ Hip Resurfacing System; the PINNACLE® Acetabular Cup System; pelvic meshes; RISPERDAL®; XARELTO®; body powders containing talc, primarily JOHNSON'S® Baby Powder; INVOKANA®; and ETHICON PHYSIOMESH® Flexible Composite Mesh. As of January 2, 2022, in the United States there were approximately 250 plaintiffs with direct claims in pending lawsuits regarding injuries allegedly due to the DePuy ASR™ XL Acetabular System and DePuy ASR™ Hip Resurfacing System; 5,300 with respect to the PINNACLE® Acetabular Cup System; 10,100 with respect to pelvic meshes; 8,800 with respect to RISPERDAL®; 5,500 with respect to XARELTO®; 40,400 with respect to body powders containing talc; 100 with respect to INVOKANA®; and 4,700 with respect to ETHICON PHYSIOMESH® Flexible Composite Mesh. The number of pending lawsuits is expected to fluctuate as certain lawsuits are settled or dismissed and additional lawsuits are filed.

In August 2010, DePuy Orthopaedics, Inc. (DePuy) announced a worldwide voluntary recall of its ASR™ XL Acetabular System and DePuy ASR™ Hip Resurfacing System (ASR Hip) used in hip replacement surgery. Claims for personal injury have been made against DePuy and Johnson & Johnson. Cases filed in federal courts in the United States have been organized as a multi-district litigation in the United States District Court for the Northern District of Ohio. Litigation has also been filed in countries outside of the United States, primarily in the United Kingdom, Canada, Australia, Ireland, Germany, India and Italy. In November 2013, DePuy reached an agreement with a Court-appointed committee of lawyers representing ASR Hip plaintiffs to establish a program to settle claims with eligible ASR Hip patients in the United States who had surgery to replace their ASR Hips, known as revision surgery, as of August 2013. DePuy reached additional agreements in February 2015 and March 2017, which further extended the settlement program to include ASR Hip patients who had revision surgeries after August 2013 and prior to February 15, 2017. This settlement program has resolved more than 10,000 claims, thereby bringing to resolution significant ASR Hip litigation activity in the United States. However, lawsuits in the United States remain, and the settlement program does not address litigation outside of the United States. In Australia, a class action settlement was reached that resolved the claims of the majority of ASR Hip patients in that country. In Canada, the Company has reached agreements to settle the class actions filed in that country. The Company continues to receive information with respect to potential additional
costs associated with this recall on a worldwide basis. The Company has established accruals for the costs associated with the United States settlement program and ASR Hip-related product liability litigation.

Claims for personal injury have also been made against DePuy Orthopaedics, Inc. and Johnson & Johnson (collectively, DePuy) relating to the PINNACLE® Acetabular Cup System used in hip replacement surgery. Product liability lawsuits continue to be filed, and the Company continues to receive information with respect to potential costs and the anticipated number of cases. Cases filed in federal courts in the United States have been organized as a multi-district litigation in the United States District Court for the Northern District of Texas. Litigation also has been filed in some state courts and in countries outside of the United States. Several adverse verdicts have been rendered against DePuy, one of which was reversed on appeal and remanded for retrial. During the first quarter of 2019, DePuy established a United States settlement program to resolve these cases. As part of the settlement program, adverse verdicts have been settled. The Company has established an accrual for product liability litigation associated with the PINNACLE® Acetabular Cup System and the related settlement program.

Claims for personal injury have been made against Ethicon, Inc. (Ethicon) and Johnson & Johnson arising out of Ethicon’s pelvic mesh devices used to treat stress urinary incontinence and pelvic organ prolapse. The Company continues to receive information with respect to potential costs and additional cases. Cases filed in federal courts in the United States had been organized as a multi-district litigation (MDL) in the United States District Court for the Southern District of West Virginia. In March 2021, the MDL Court entered an order closing the MDL. The MDL Court has remanded cases for trial to the jurisdictions where the case was originally filed and additional pelvic mesh lawsuits have been filed, and remain, outside of the MDL. The Company has settled or otherwise resolved the majority of the United States cases and the estimated costs associated with these settlements and the remaining cases are reflected in the Company’s accruals. In addition, class actions and individual personal injury cases or claims seeking damages for alleged injury resulting from Ethicon’s pelvic mesh devices have been commenced in various countries outside of the United States, including claims and cases in the United Kingdom, the Netherlands and class actions in Israel, Australia and Canada. In November 2019, the Federal Court of Australia issued a judgment regarding its findings with respect to liability in relation to the three Lead Applicants and generally in relation to the design, manufacture, pre and post-market assessments and testing, and supply and promotion of the devices in Australia used to treat stress urinary incontinence and pelvic organ prolapse. In March 2020, the Court issued a decision and entered damages awards to the three Lead Applicants. The Company appealed the decision to the intermediate appellate court, the Full Court. The appeal was heard in February 2021 and, in March 2021, the Full Court entered a judgment dismissing the appeal. An application for special leave to the High Court of Australia was filed in April 2021, and the High Court heard oral argument on the application in November 2021. Special leave was refused. While this brings an end to the appellate process, there will now be an individual case assessment process for the remaining group member claims. The parties currently are in discussions with the Court to determine the form and mechanism of that individual case assessment process. The next hearing is scheduled for late February 2022. The class actions in Canada were discontinued in 2020 as a result of a settlement of a group of cases and an agreement to resolve the Israeli class action was reached in May 2021. The parties in the Israeli class action are currently negotiating the wording and some of the terms thereof and once finalized, the settlement will be subject to court approval. The parties are due to update the court on the status of the finalization of the settlement negotiations by the end of February 2022. The Company has established accruals with respect to product liability litigation associated with Ethicon’s pelvic mesh products.

Following a June 2016 worldwide market withdrawal of ETHICON PHYSIOMESH® Flexible Composite Mesh (Physiomesh), claims for personal injury have been made against Ethicon, Inc. (Ethicon) and Johnson & Johnson alleging personal injury arising out of the use of this hernia mesh device. Cases filed in federal courts in the United States have been organized as a multi-district litigation (MDL) in the United States District Court for the Northern District of Georgia. A multi-county litigation (MCL) also has been formed in New Jersey state court and assigned to Atlantic County for cases pending in New Jersey. In addition to the matters in the MDL and MCL, there are additional lawsuits pending in the United States District Court for the Southern District of Ohio, which are part of the MDL for polypropylene mesh devices manufactured by C.R. Bard, Inc., one multi-plaintiff lawsuit pending in Oklahoma state court and lawsuits pending outside the United States. In May 2021, Ethicon and lead counsel for the plaintiffs entered into a term sheet to resolve approximately 3,600 Physiomesh cases (covering approximately 4,300 plaintiffs) pending in the MDL and MCL at that time. A master settlement agreement (MSA) was entered into in September 2021 and includes 3,729 cases in the MDL and MCL. All deadlines and trial settings in those proceedings are currently stayed pending the completion of the settlement agreement. The deadline for issuance of Individual Allocation amounts by the Special Master is March 2022. The costs associated with this proposed settlement are reflected in the Company’s accruals. Post-Settlement cases in the Physiomesh MDL and MCL are subject to docket control orders requiring early expert reports and discovery requirements. As of February 2022, there are approximately 90 active cases subject to these orders which are being reviewed and evaluated.

Claims have also been filed against Ethicon and Johnson & Johnson alleging personal injuries arising from the PROCEED® Mesh and PROCEED® Ventral Patch hernia mesh products. In March 2019, the New Jersey Supreme Court entered an order consolidating these cases pending in New Jersey as an MCL in Atlantic County Superior Court. Additional cases have been filed in various federal and state courts in the United States, and in jurisdictions outside the United States. Discovery is underway in the MCL proceedings.
Ethicon and Johnson & Johnson also have been subject to claims for personal injuries arising from the PROLENE™ Polypropylene Hernia System. In January 2020, the New Jersey Supreme Court created an MCL in Atlantic County Superior Court to handle such cases. Cases involving this product have also been filed in other federal and state courts in the United States.

The Company has established accruals with respect to product liability litigation associated with ETHICON PHYSIOMESH® Flexible Composite Mesh, PROCEED® Mesh and PROCEED® Ventral Patch, and PROLENE™ Polypropylene Hernia System products.

Claims for personal injury have been made against Janssen Pharmaceuticals, Inc. and Johnson & Johnson arising out of the use of RISPERDAL®, and related compounds, indicated for the treatment of schizophrenia, acute manic or mixed episodes associated with bipolar I disorder and irritability associated with autism. Lawsuits primarily have been filed in state courts in Pennsylvania, California, and Missouri. Other actions are pending in various courts in the United States and Canada. Product liability lawsuits continue to be filed, and the Company continues to receive information with respect to potential costs and the anticipated number of cases. The Company has successfully defended a number of these cases but there have been verdicts against the Company, including a verdict in October 2019 of $8.0 billion of punitive damages related to one plaintiff, which the trial judge reduced to $6.8 million in January 2020. In September 2021, the Company entered into a settlement in principle with the counsel representing plaintiffs in this matter and in substantially all of the outstanding cases in the United States. The costs associated with this and other settlements are reflected in the Company’s accruals.

Claims for personal injury arising out of the use of XARELTO®, an oral anticoagulant, have been made against Janssen Pharmaceuticals, Inc. (JPI); Johnson & Johnson; and JPI’s collaboration partner for XARELTO®, Bayer Healthcare AG, and certain of its affiliates. Cases filed in federal courts in the United States have been organized as a multi-district litigation in the United States District Court for the Eastern District of Louisiana. In addition, cases have been filed in state courts across the United States. Many of these cases were consolidated into a state mass tort litigation in Philadelphia, Pennsylvania and in a coordinated proceeding in Los Angeles, California. Class action lawsuits also have been filed in Canada. In March 2019, JPI and Johnson & Johnson announced an agreement in principle to settle the XARELTO® cases in the United States; the settlement agreement was executed in May 2019, the settlement became final in December 2019, and the settlement was funded in January 2020. This resolved the majority of cases pending in the United States. The Company has established accruals for its costs associated with the United States settlement program and XARELTO® related product liability litigation.

A significant number of personal injury claims alleging that talc causes cancer were made against Johnson & Johnson Consumer Inc. and Johnson & Johnson arising out of the use of body powders containing talc, primarily JOHNSON’S® Baby Powder. The number of these personal injury lawsuits, filed in state and federal courts in the United States as well as outside of the United States, continued to increase through fiscal year 2021.

In talc cases that previously have gone to trial, the Company has obtained a number of defense verdicts, but there also have been verdicts against the Company, many of which have been reversed on appeal. In June 2020, the Missouri Court of Appeals reversed in part and affirmed in part a July 2018 verdict of $4.7 billion in Ingham v. Johnson & Johnson, et al., No. ED 207476 (Mo. App.), reducing the overall award to $2.1 billion. An application for transfer of the case to the Missouri Supreme Court was subsequently denied and in June 2021, a petition for certiorari, seeking a review of the Ingham decision by the United States Supreme Court, was denied. In June 2021, the Company paid the award, which, including interest, totaled approximately $2.5 billion. The facts and circumstances, including the terms of the award, were unique to the Ingham decision and not representative of other claims brought against the Company. The Company continues to believe that it has strong legal grounds to contest the other talc verdicts that it has appealed. Notwithstanding the Company’s confidence in the safety of its talc products, in certain circumstances the Company has settled cases.

In October 2021, Johnson & Johnson Consumer Inc. (Old JJCI) implemented a corporate restructuring (the 2021 Corporate Restructuring). As a result of that restructuring, Old JJCI ceased to exist and three new entities were created: (a) LTL Management LLC, a North Carolina limited liability company (LTL or Debtor); (b) Royalty A&M LLC, a North Carolina limited liability company and a direct subsidiary of LTL (RAM); and (c) the Debtor’s direct parent, Johnson & Johnson Consumer Inc., a New Jersey company (New JJCI). The Debtor received certain of Old JJCI’s assets and became solely responsible for the talc-related liabilities of Old JJCI, including all liabilities related in any way to injury or damage, or alleged injury or damage, sustained or incurred in the purchase or use of, or exposure to, talc, including talc contained in any product, or to the risk of, or responsibility for, any such damage or injury, except for any liabilities for which the exclusive remedy is provided under a workers’ compensation statute or act (the Talc-Related Liabilities).

In October 2021, notwithstanding the Company’s confidence in the safety of its talc products, the Debtor filed a voluntary petition with the United States Bankruptcy Court for the Western District of North Carolina, Charlotte Division, seeking relief under chapter 11 of the Bankruptcy Code (the LTL Bankruptcy Case). As a result of the LTL Bankruptcy Case, the Court entered a temporary restraining order staying all litigation against LTL and Old JJCI. On November 15, 2021, the North
Carolina Bankruptcy Court confirmed the scope of the stay, issuing a Preliminary Injunction (PI) prohibiting and enjoining the commencement and prosecution of talc-related claims against LTL, Old JJCI, New JJCI, Johnson & Johnson, other of their corporate affiliates, identified retailers, insurance companies, and certain other parties. The LTL Bankruptcy Case was transferred to the United States Bankruptcy Court for the District of New Jersey in November 2021, and that court subsequently extended the PI through the end of February 2022. Claimants have filed a motion to dismiss the LTL Bankruptcy Case. The court commenced a hearing on February 14, 2022 regarding the motion to dismiss and on whether the PI should be extended. While the PI effectively stays all of the Company’s talc-related personal injury litigation, LTL has agreed to lift the automatic stay on a small number of appeals where appeal bonds have been filed.

The Company has agreed to provide funding to LTL for the payment of amounts the Bankruptcy Court determines are owed by LTL through the establishment of a $2 billion trust in furtherance of this purpose. The Company has established a reserve for approximately $2 billion in connection with the aforementioned trust. Subsequent to the fiscal third quarter of 2021, the Company de-consolidated LTL, which is a related party, as a result of the bankruptcy filing. The impact of the de-consolidation is not material to the Company. The parties have not yet been able to reach a resolution of all matters related to talc, and while certain amounts under various scenarios have recently been referred to in testimony as part of the LTL bankruptcy proceedings, the Company is unable to estimate the possible loss or range of loss beyond the amount accrued.

In February 2019, the Company’s talc supplier, Imerys Talc America, Inc. and two of its affiliates, Imerys Talc Vermont, Inc. and Imerys Talc Canada, Inc. (collectively, Imerys) filed a voluntary petition under chapter 11 of the United States Code (the Bankruptcy Code) in the United States Bankruptcy Court for the District of Delaware (Imerys Bankruptcy). The Imerys Bankruptcy relates to Imerys’s potential liability for personal injury from exposure to talcum powder sold by Imerys (Talc Claims). In its bankruptcy, Imerys alleges it has claims against the Company for indemnification and rights to joint insurance proceeds. In May 2020, Imerys, its parent Imerys S.A., the Tort Claimants’ Committee (TCC), and the Future Claimants’ Representative (FCR) (collectively, the Plan Proponents) filed their Plan of Reorganization (the Plan) and the Disclosure Statement related thereto. The Plan Proponents have since filed numerous amendments to the Plan and Disclosure Statement. A hearing on the Plan Proponent’s Disclosure Statement was held in January 2021, and the Court entered an order approving the Disclosure Statement, allowing Imerys to proceed with soliciting votes on the Plan. In March 2021, the Company voted to reject the Plan and opted out of the consensual releases in the Plan. In April 2021, the Plan Proponents announced the Plan had received the requisite number of accepting votes to confirm the Plan. The Company challenged certain improprieties with respect to portions of the vote and sought to disqualify those votes. In October 2021, the Bankruptcy Court issued a ruling deeming thousands of votes as withdrawn as improperly voted. In October 2021, Imerys cancelled the confirmation hearing on the Plan. Imerys, the TCC, the FCR, and certain of Imerys’s insurers (the Mediation Parties) have since agreed to engage in mediation.

In July 2021, Imerys commenced an adversary proceeding against the Company in the Imerys Bankruptcy (the Imerys adversary proceeding). The Imerys adversary proceeding sought, among other things, certain declarations with respect to the indemnification obligations allegedly owed by the Company to Imerys. The TCC and FCR simultaneously filed a motion for temporary restraining order and preliminary injunction seeking to enjoin the Company from undergoing a corporate restructuring that would separate the Company’s talc liabilities from its other assets. The Bankruptcy Court denied the motion. The Company thereafter filed a motion to dismiss the adversary proceeding. The Bankruptcy Court has not yet decided the motion to dismiss. In October 2021, the Company filed a Notice of Bankruptcy Filing and Stay of Proceedings clarifying that the automatic stay arising upon the filing of the LTL Bankruptcy Case should apply to the Imerys adversary proceeding.

In June 2020, Cyprus Mines Corporation and its parent (together, Cyprus), which had owned certain Imerys talc mines, filed an adversary proceeding against the Company and Imerys in the Imerys Bankruptcy seeking a declaration of indemnity rights under certain contractual agreements (the Cyprus adversary proceeding). The Company denies such indemnification is owed, and filed a motion to dismiss the adversary complaint. In February 2021, Cyprus filed a voluntary petition for relief under chapter 11 of the Bankruptcy Code and filed its Disclosure Statement and Plan. The Plan contemplates a settlement with Imerys and talc claimants where Cyprus would make a monetary contribution to a trust established under the Imerys Plan in exchange for an injunction against Talc Claims asserted against it. Cyprus has not yet sought approval of its Disclosure Statement and Plan. Cyprus, along with the TCC and FCR appointed in the Cyprus chapter 11 case, have agreed to participate in the mediation with the Mediation Parties. In October 2021, the Company filed a Notice of Bankruptcy Filing and Stay of Proceedings clarifying that the automatic stay arising upon the filing of the LTL Bankruptcy Case should apply to the Cyprus adversary proceeding.

In February 2021, several of the Company’s insurers involved in coverage litigation in New Jersey State Court (the Coverage Action) filed a motion in the Imerys Bankruptcy Court proceeding seeking a determination that the automatic stay does not apply to the Coverage Action and, in the alternative, seeking relief from the automatic stay to allow them to continue to litigate their claims in the Coverage Action. In March 2021, the Company filed a limited response and reservation of rights with respect to the motion. The Court entered an agreed order modifying the stay to allow the litigation in the Coverage Action to continue. In October 2021, LTL filed a Notice of Bankruptcy Filing and Stay of Proceedings clarifying that the automatic stay arising upon the filing of the LTL Bankruptcy Case should apply to the Coverage Action.
In February 2018, a securities class action lawsuit was filed against Johnson & Johnson and certain named officers in the United States District Court for the District of New Jersey, alleging that Johnson & Johnson violated the federal securities laws by failing to disclose alleged asbestos contamination in body powders containing talc, primarily JOHNSON’S® Baby Powder, and that purchasers of Johnson & Johnson’s shares suffered losses as a result. Plaintiff is seeking damages. In April 2019, the Company moved to dismiss the complaint and briefing on the motion was complete as of August 2019. In December 2019, the Court denied, in part, the motion to dismiss. In March 2020, the Company answered the complaint. In April 2021, briefing on Plaintiffs’ motion for class certification was completed. In July 2021, the Company filed a notice of supplemental authority in opposition to Plaintiff’s motion for class certification, and Plaintiff filed a response. In December 2021, the Company filed a motion to supplement the class certification record, and in January 2022, Plaintiff responded. Discovery is ongoing.

In June 2019, a shareholder filed a complaint initiating a summary proceeding in New Jersey state court for a books and records inspection. In August 2019, Johnson & Johnson responded to the books and records complaint and filed a cross motion to dismiss. In September 2019, Plaintiff replied and the Court heard oral argument. In February 2022, the Court granted Johnson & Johnson's cross motion to dismiss. In October 2019, December 2019, and January 2020, four shareholders filed four separate derivative lawsuits against Johnson & Johnson as the nominal defendant and its current directors and certain officers as defendants in the United States District Court for the District of New Jersey, alleging a breach of fiduciary duties related to the alleged asbestos contamination in body powders containing talc, primarily JOHNSON’S® Baby Powder, and that Johnson & Johnson has suffered damages as a result of those alleged breaches. In February 2020, the four cases were consolidated into a single action under the caption In re Johnson & Johnson Talc Stockholder Derivative Litigation. In July 2020, a report was delivered to the Company’s Board of Directors by independent counsel retained by the Board to investigate the allegations in the derivative lawsuits and in a series of shareholder letters that the Board received raising similar issues and demanding that suit be brought against certain Directors. Four of the shareholders who sent demands are plaintiffs in the In re Johnson & Johnson Talc Stockholder Derivative Litigation. The independent counsel recommended that the Company reject the shareholder demands and take the steps that are necessary or appropriate to secure dismissal of the derivative lawsuits. The Board unanimously adopted the recommendations of the independent counsel’s report. In October 2020, the shareholders filed a consolidated complaint, and in January 2021, Johnson & Johnson moved to dismiss the consolidated complaint. In March 2021, Plaintiffs filed a motion for discovery. The Court temporarily terminated Johnson & Johnson’s motion to dismiss pending a decision on Plaintiff’s motion for discovery. In November 2021, at the Court’s request, the parties submitted supplemental briefing on Plaintiff’s motion for discovery.

In January 2019, two ERISA class action lawsuits were filed by participants in the Johnson & Johnson Savings Plan against Johnson & Johnson, its Pension and Benefits Committee, and certain named officers in the United States District Court for the District of New Jersey, alleging that the defendants breached their fiduciary duties by offering Johnson & Johnson stock as a Johnson & Johnson Savings Plan investment option when it was imprudent to do so because of failures to disclose alleged asbestos contamination in body powders containing talc, primarily JOHNSON’S® Baby Powder. Plaintiffs are seeking damages and injunctive relief. In September 2019, Defendants filed a motion to dismiss. In April 2020, the Court granted Defendants’ motion but granted leave to amend. In June 2020, Plaintiffs filed an amended complaint, and in July 2020, Defendants moved to dismiss the amended complaint. As of October 2020, briefing on Defendants’ motion was complete. In February 2021, the Court granted Defendants’ motion, and granted Plaintiffs leave to amend. In April 2021, Plaintiffs informed the Court that they did not intend to file an amended complaint, and the Court dismissed the case with prejudice. In May 2021, Plaintiffs filed a notice of appeal with the Third Circuit. In July 2021, Plaintiffs filed their opening brief in the Third Circuit and in September 2021, Defendants filed their response brief, and in October 2021, Plaintiffs filed their reply brief. In January 2022, the Third Circuit heard oral argument.
A lawsuit was brought against the Company in the Superior Court of California for the County of San Diego alleging violations of California’s Consumer Legal Remedies Act (CLRA) relating to JOHNSON’S® Baby Powder. In that lawsuit, the plaintiffs allege that Johnson & Johnson violated the CLRA by failing to provide required Proposition 65 warnings. In July 2019, the Company filed a notice of removal to the United States District Court for the Southern District of California and plaintiffs filed a second amended complaint shortly thereafter. In October 2019, the Company moved to dismiss the second amended complaint for failure to state a claim upon which relief may be granted. In response to those motions, plaintiffs filed a third amended complaint. In December 2019, the Company moved to dismiss the third amended complaint for failure to state a claim upon which relief may be granted. In April 2020, the Court granted the motion to dismiss but granted leave to amend. In May 2020, plaintiffs filed a Fourth Amended Complaint but indicated that they would be filing a motion for leave to file a fifth amended complaint. Plaintiffs filed a Fifth Amended Complaint in August 2020. The Company moved to dismiss the Fifth Amended Complaint for failure to state a claim upon which relief may be granted. In January 2021, the Court issued an Order and opinion ruling in the Company’s favor and granting the motion to dismiss with prejudice. In February 2021, Plaintiffs filed a Notice of Appeal with the Ninth Circuit. Plaintiffs filed their opening brief in July 2021. The company filed its responsive brief in October 2021. In October 2021, Notice of Suggestion of Bankruptcy was filed with the Ninth Circuit. A bankruptcy stay was imposed in December 2021, and the Court held the reply deadline in abeyance.

In addition, the Company has received inquiries, subpoenas, and requests to produce documents regarding talc matters, including from Senator Murray, a member of the Senate Committee on Health, Education, Labor and Pensions, the Department of Justice, the Subcommittee on Economic and Consumer Policy of the House Committee on Oversight and Reform, the Senate
Committee on the Judiciary, the House Committee on Oversight and Reform, and individual Members of Congress. The Company has produced documents and responded to inquiries, and will continue to cooperate with government inquiries.

Claims for personal injury have been made against a number of Johnson & Johnson companies, including Janssen Pharmaceuticals, Inc. and Johnson & Johnson, arising out of the use of INVOKANA®, a prescription medication indicated to improve glycemic control in adults with Type 2 diabetes. In December 2016, lawsuits filed in federal courts in the United States were organized as a multi-district litigation in the United States District Court for the District of New Jersey. Cases have also been filed in state courts. Class action lawsuits have been filed in Canada. Product liability lawsuits continue to be filed, and the Company continues to receive information with respect to potential costs and the anticipated number of cases. The Company has settled or otherwise resolved many of the cases and claims in the United States and the costs associated with these settlements are reflected in the Company’s accruals.

Claims for personal injury have been made against a number of Johnson & Johnson companies, including Janssen Pharmaceuticals, Inc. and Johnson & Johnson, arising out of the use of ELMIRON®, a prescription medication indicated for the relief of bladder pain or discomfort associated with interstitial cystitis. These lawsuits, which allege that ELMIRON® contributes to the development of permanent retinal injury and vision loss, have been filed in both state and federal courts across the United States. In December 2020, lawsuits filed in federal courts in the United States, including putative class action cases seeking medical monitoring, were organized as a multi-district litigation in the United States District Court for the District of New Jersey. Cases also have been filed in various state courts. In addition, three class action lawsuits have been filed in Canada. Product liability lawsuits continue to be filed, and the Company continues to receive information with respect to potential costs and the anticipated number of cases. The Company has established accruals for defense costs associated with ELMIRON® related product liability litigation.

INTELLECTUAL PROPERTY
Certain subsidiaries of Johnson & Johnson are subject, from time to time, to legal proceedings and claims related to patent, trademark and other intellectual property matters arising out of their businesses. Many of these matters involve challenges to the coverage and/or validity of the patents on various products and allegations that certain of the Company’s products infringe the patents of third parties. Although these subsidiaries believe that they have substantial defenses to these challenges and allegations with respect to all significant patents, there can be no assurance as to the outcome of these matters. A loss in any of these cases could adversely affect the ability of these subsidiaries to sell their products, result in loss of sales due to loss of market exclusivity, require the payment of past damages and future royalties, and may result in a non-cash impairment charge for any associated intangible asset. Significant matters are described below.

Medical Devices
In December 2016, Dr. Ford Albritton sued Acclarent, Inc. (Acclarent) in United States District Court for the Northern District of Texas alleging that Acclarent’s RELIEVA® Spin and RELIEVEA SpinPlus® products infringe U.S. Patent No. 9,011,412. Dr. Albritton also alleges breach of contract, fraud and that he is the true owner of Acclarent’s U.S. Patent No. 8,414,473. Trial began in October 2021, and shortly thereafter, the parties reached an agreement to settle the case. Plaintiff’s motion to dismiss with prejudice was filed in October 2021. The case was dismissed with prejudice in November 2021.

In August 2018, Intuitive Surgical, Inc. and Intuitive Surgical Operations, Inc. (collectively, Intuitive) filed a patent infringement suit against Auris Health, Inc. (Auris) in United States District Court for the District of Delaware. In the suit, Intuitive alleges willful infringement of U.S. Patent Nos. 6,246,200 (’200); 6,491,701 (’701); 6,522,906 (’906); 6,800,056 (’056); 8,142,447 (’447); 8,620,473 (’473); 8,801,601 (’601); and 9,452,276 (’276) based on Auris’ Monarch™ Platform. Auris filed IPR Petitions with the U.S. Patent and Trademark Office (USPTO) regarding the ’200, ’056, ’601 ’701, ’447, ’276 and ’906 patents. Intuitive subsequently dropped the ’200, ’473 and ’701 patents from the suit. In December 2019, the USPTO instituted review of the ’601 patent and denied review of the ’056 patent. In February and March 2020, the USPTO instituted review of the ’200, ’447, ’701 and ’906 patents and denied review of the ’276 patent. In December 2020, the USPTO declared all of the challenged claims in the ’601 patent to be invalid. Intuitive has appealed that decision. In March 2021, the USPTO ruled that the challenged claims of the ’447 and ’906 patents are not invalid. Auris has appealed that decision. Auris filed a request for reexamination of the ’276 patent in November 2021, and in January 2022, the USPTO granted the reexamination request. Trial is scheduled to begin in January 2023.

In August 2019, RSB Spine LLC (RSB Spine) filed a patent infringement suit against DePuy Synthes, Inc. in the United States District Court for the District of Delaware. In October 2019, RSB Spine amended the complaint to change the named defendants to DePuy Synthes Sales, Inc. and DePuy Synthes Products, Inc. In the suit, RSB Spine alleges willful infringement of United States Patent Nos. 6,984,234 and 9,713,537 by one or more of the following products: ZERO-P-VA™ Spacer, ZERO-P® Spacer, ZERO-P NATURAL™ Plate, SYNFIX® LR Spacer and SYNFIX® Evolution System. RSB Spine seeks
monetary damages and injunctive relief. In November 2019, the suit was consolidated for pre-trial purposes with other patent infringement suits brought by RSB Spine in the United States District Court for the District of Delaware against Life Spine, Inc., Medacta USA, Inc., and Precision Spine, Inc. A stay that had been entered pending Inter Partes Review at the U.S. Patent & Trademark Office has been lifted, and trial is scheduled to begin in December 2022.

In March 2020, Osteoplastics, LLC filed a patent infringement suit against DePuy Synthes, Inc., DePuy Synthes Products, Inc., Medical Device Business Services, Inc., and Synthes, Inc. (collectively, DePuy Synthes) in the United States District Court for the District of Delaware. In the suit, Osteoplastics alleges willful infringement of U.S. Patent Nos. 8,781,557; 9,929,920; 9,330,206; 9,626,756; 9,672,617; 9,672,302; and 9,275,191 based on the PROPLAN CMF® Virtual Surgical Planning Services and the TruMatch® CMF Personalize Solutions. In April 2020, Osteoplastics filed an amended complaint to substitute U.S. Patent No. 9,292,920 for U.S. Patent No. 9,929,920. Osteoplastics seeks monetary damages and injunctive relief. In June 2020, DePuy Synthes filed a motion to dismiss the complaint. In October 2020, the Court dismissed Medical Device Business Services, Inc. from the case but otherwise denied the motion. In June 2021, Osteoplastics admitted that the PROPLAN CMF® Virtual Surgical Planning Services do not infringe any asserted patents. Trial was scheduled for October 2022. In October 2021, the case was settled and dismissed.

In October 2020, Rasmussen Instruments, LLC (Rasmussen) filed a patent infringement suit against DePuy Synthes Products, Inc., DePuy Synthes Sales, Inc. and Medical Device Business Services, Inc. (collectively, DePuy) in the United States District Court for the District of Massachusetts. Rasmussen alleges that DePuy willfully infringes U.S. Patent Nos. 9,492,180 and 10,517,583 (’583) by making and selling the Attune® Balanced Sizer. In April 2021, Rasmussen sought permission to amend its infringement contentions to allege that DePuy also willfully infringes the ’583 patent by making and selling the Attune® Balancing Blocks. Rasmussen seeks treble damages for willful infringement. Trial is scheduled for February 2022.

Pharmaceutical
Litigation Against Filers of Abbreviated New Drug Applications (ANDAs)

The following summarizes lawsuits the Company’s subsidiaries have brought against generic companies that have filed ANDAs with the U.S. FDA or undertaken similar regulatory processes outside of the United States, seeking to market generic forms of products sold by various subsidiaries of Johnson & Johnson prior to expiration of the applicable patents covering those products. These ANDAs typically include allegations of non-infringement and invalidity of the applicable patents. In the event the Company’s subsidiaries are not successful in an action, or the automatic statutory stay of the ANDAs expires before the United States District Court rulings are obtained, the generic companies involved would have the ability, upon approval of the U.S. FDA, to introduce generic versions of their products to the market, resulting in the potential for substantial market share and revenue losses for the applicable products, and which may result in a non-cash impairment charge in any associated intangible asset. In addition, from time to time, the Company’s subsidiaries may settle these types of actions and such settlements can involve the introduction of generic versions of the products at issue to the market prior to the expiration of the relevant patents. The Inter Partes Review (IPR) process with the USPTO, created under the 2011 America Invents Act, is also being used at times by generic companies in conjunction with ANDAs and lawsuits, to challenge the applicable patents.

ZYTIGA®

Beginning in January 2019, Janssen Inc. and Janssen Oncology, Inc. (collectively, Janssen) initiated Statements of Claim under Section 6 of the Patented Medicines (Notice of Compliance) Regulations in Canada against Apotex Inc. (Apotex), Pharmascience Inc. (Pharmascience) and Dr. Reddy’s Laboratories Ltd. and Dr. Reddy’s Laboratories, Inc. (collectively, DRL) in response to those parties’ filing of Abbreviated New Drug Submissions (ANDS) seeking approval to market generic versions of ZYTIGA® before the expiration of the Canadian Patent No. 2,661,422 (’422). The trial in these actions concluded in November 2020, and the Court issued a decision holding the ’422 patent invalid in January 2021. In February 2021, Janssen appealed the decision.

XARELTO®

In March 2021, Janssen Pharmaceuticals, Inc. (JPI) and Bayer Pharma AG and Bayer AG (collectively, Bayer) filed a patent infringement lawsuit in the United States District Court for the District of Delaware against Lupin Limited and Lupin Pharmaceuticals, Inc. which filed an ANDA seeking approval to market a generic version of XARELTO® before expiration of U.S. Patent No. 10,828,310 (’310).

In May 2021, JPI and Bayer filed a patent infringement lawsuit in the United States District Court for the District of Delaware against Dr. Reddy’s Laboratories, Inc. and Dr. Reddy’s Laboratories, Ltd. which filed an ANDA seeking approval to market a generic version of XARELTO® before expiration of the ’310 patent.
In July 2021, JPI and Bayer filed a patent infringement lawsuit in the United States District Court for the District of Delaware against Taro Pharmaceutical Industries Ltd. and Taro Pharmaceuticals U.S.A., Inc. (collectively, Taro) which filed an ANDA seeking approval to market a generic version of XARELTO® before expiration of the ’310 patent.

In July 2021, JPI and Bayer filed a patent infringement lawsuit in the United States District Court for the District of Delaware against Teva Pharmaceuticals USA, Inc. and Teva Pharmaceutical Industries Ltd. which filed an ANDA seeking approval to market a generic version of XARELTO® before expiration of the ’310 patent. In August 2021, the court entered a joint stipulation dismissing Teva Pharmaceutical Industries Ltd.

In October 2021, the court consolidated the Delaware lawsuits for all purposes, including trial. Trial for the consolidated Delaware lawsuits is scheduled to begin in May 2023.

In July 2021, JPI and Bayer filed a patent infringement lawsuit in the United States District Court for the Northern District of West Virginia against Mylan Pharmaceuticals Inc. and Mylan Inc. which filed an ANDA seeking approval to market a generic version of XARELTO® before expiration of the ’310 patent. In August 2021, JPI and Bayer filed a motion before the United States Judicial Panel on Multidistrict Litigation (the MDL panel) to transfer this lawsuit to the United States District Court for the District of Delaware for coordinated and consolidated pretrial proceedings. In December 2021, the MDL panel granted the motion. No trial date has been set in this lawsuit.

In each of these lawsuits, JPI and Bayer are seeking an order enjoining defendants from marketing their generic version of XARELTO® before the expiration of the ’310 patent.

INVOKANA®/INVOKAMET®/INVOKAMET XR®

In October 2019, Janssen Pharmaceuticals, Inc., Janssen Research & Development, LLC, Cilag GmbH International and Janssen Pharmaceutica NV (collectively, Janssen) and Mitsubishi Tanabe Pharma Corporation (MTPC) initiated a patent infringement lawsuit in the United States District Court for the District of New Jersey against Dr. Reddy’s Laboratories, Inc. and Dr. Reddy’s Laboratories Ltd (DRL), who filed an ANDA seeking approval to market a generic version of INVOKAMET® before expiration of MTPC’s United States Patent No. 7,943,788 (’788) relating to INVOKAMET®. In January 2021, Janssen and MTPC filed a patent infringement lawsuit in the United States District Court for the District of New Jersey against Macleods Pharmaceuticals, Ltd. and Macleods Pharma USA, Inc. (Macleods), which filed an ANDA seeking approval to market a generic version of INVOKAMET XR® before expiration of MTPC’s United States Patent Nos. 7,943,582 (’582) and/or 8,513,202 (’202) relating to INVOKAMET XR®.

In each of these U.S. lawsuits, Janssen and MTPC are seeking an order enjoining the defendant from marketing their generic versions of INVOKAMET® and/or, INVOKAMET XR® before the expiration of the relevant patents.

In October 2020, Janssen Inc., Janssen Pharmaceutica NV and MTPC initiated a Statement of Claim under Section 6 of the Patented Medicines (Notice of Compliance) Regulations against Sandoz Canada Inc. (Sandoz) in Canada in response to Sandoz’s filing of an ANDS seeking approval to market a generic version of INVOKANA® before the expiration of the Canadian Patent Nos. 2,799,204, 2,534,024 and 2,671,357. Janssen Inc., Janssen Pharmaceutica NV and MTPC are seeking an order enjoining Sandoz from marketing its generic version of INVOKANA® before the expiration of the relevant patents. The trial is scheduled to begin in August 2022.

OPSUMIT®

In May 2020, Janssen Inc. (Janssen) and Actelion Pharmaceuticals Ltd (Actelion) initiated a Statement of Claim under Section 6 of the Patented Medicines (Notice of Compliance) Regulations against Sandoz Canada Inc. (Sandoz) in Canada in response to Sandoz’s filing of an ANDS seeking approval to market a generic version of OPSUMIT® 10 mg, before the expiration of Canadian Patent No. 2,659,770 (’770). Trial is ongoing.

In May 2020, Janssen and Actelion initiated a Statement of Claim under Section 6 of the Patented Medicines (Notice of Compliance) Regulations against Apotex Inc. (Apotex) in Canada in response to Apotex’s filing of an ANDS seeking approval to market a generic version of OPSUMIT® 10 mg, before the expiration of the ’770 patent. Trial is scheduled to begin in February 2022.

In July 2020, Janssen and Actelion initiated a Statement of Claim under Section 6 of the Patented Medicines (Notice of Compliance) Regulations against JAMP Pharma Corporation (JAMP) in Canada in response to JAMP’s filing of an ANDS seeking approval to market a generic version of OPSUMIT® 10 mg before the expiration of the ’770 patent and Canadian Patent No. 2,621,273 (’273). Trial is scheduled to begin in April 2022.
In each of these Canadian actions, Janssen and Actelion are seeking an order enjoining the defendants from marketing their generic versions of OPSUMIT® before the expiration of the relevant patents.

INVEGA SUSTENNA®

In January 2018, Janssen Pharmaceutica NV and Janssen Pharmaceuticals, Inc. (collectively, Janssen) initiated a patent infringement lawsuit in the United States District Court for the District of New Jersey against Teva Pharmaceuticals USA, Inc. (Teva), which filed an ANDA seeking approval to market a generic version of INVEGA SUSTENNA® before the expiration of United States Patent No. 9,439,906 (’906). Trial concluded in October 2020. In October 2021, the court issued a decision in Janssen’s favor. Teva has appealed the decision.

In August 2019, Janssen initiated a patent infringement lawsuit in the United States District Court for the District of New Jersey against Mylan Laboratories Limited (Mylan), which filed an ANDA seeking approval to market a generic version of INVEGA SUSTENNA® before the expiration of the ’906 patent. Pursuant to an agreement by the parties, judgment in favor of Janssen was entered in December 2021. Mylan has filed an appeal.

In December 2019, Janssen initiated a patent infringement lawsuit in the United States District Courts for the Districts of New Jersey and Delaware against Pharmascience Inc., Mallinckrodt PLC and Specgx LLC (collectively, Pharmascience), which filed an ANDA seeking approval to market a generic version of INVEGA SUSTENNA® before the expiration of the ’906 patent.

In November 2021, Janssen initiated a patent infringement lawsuit in the United States District Court for the District of Delaware against Tolmar, Inc., Tolmar Therapeutics, Inc., Tolmar Pharmaceuticals, Inc. and Tolmar Holding, Inc. (collectively, Tolmar), which filed an ANDA seeking approval to market a generic version of INVEGA SUSTENNA® before the expiration of the ’906 patent.

In each of these U.S. lawsuits, Janssen is seeking an order enjoining the defendant from marketing a generic version of INVEGA SUSTENNA® before the expiration of the relevant patents.

In February 2018, Janssen Inc. and Janssen Pharmaceutica NV (collectively, Janssen Canada) initiated a Statement of Claim under Section 6 of the Patented Medicines (Notice of Compliance) Regulations against Teva Canada Limited (Teva Canada) in response to Teva’s filing of an ANDS seeking approval to market a generic version of INVEGA SUSTENNA® before the expiration of Canadian Patent Nos. 2,309,629 (’629) and 2,655,335 (’335). Janssen subsequently discontinued the portion of the lawsuit relating to the ’629 patent. In May 2020, the Canadian Federal Court issued a Public Judgment and Reasons declaring that Teva Canada’s generic version of INVEGA SUSTENNA®, if approved, would infringe certain claims of the ’335 patent and that the claims of the ’335 patent are not invalid for obviousness. Teva Canada appealed.

In November 2020, Janssen Canada initiated a Statement of Claim under Section 6 of the Patented Medicines (Notice of Compliance) Regulations against Pharmascience Inc. in response to Pharmascience Inc.’s filing of an ANDS seeking approval to market a generic version of INVEGA SUSTENNA® before the expiration of the ’335 patent. A summary trial on the issue of infringement took place in November 2021. In January 2022, the Court issued a decision in favor of Janssen on the issue of infringement. A trial on the issue of validity is scheduled to begin in July 2022.

In January 2021, Janssen Canada initiated a Statement of Claim under Section 6 of the Patented Medicines (Notice of Compliance) Regulations against Apotex Inc. (Apotex) in response to Apotex’s filing of an ANDS seeking approval to market a generic version of INVEGA SUSTENNA® before the expiration of the ’335 patent. A summary trial on the issue of infringement took place in December 2021. In January 2022, the Court issued a decision in favor of Janssen on the issue of infringement. Apotex has not contested validity.

In each of these Canadian lawsuits, Janssen Canada is seeking an order enjoining the defendant from marketing a generic version of INVEGA SUSTENNA® before the expiration of the relevant patents.

INVEGA TRINZA®

In September 2020, Janssen Pharmaceuticals, Inc., Janssen Pharmaceutica NV, and Janssen Research & Development, LLC (collectively, Janssen) initiated a patent infringement lawsuit in the United States District Court for the District of New Jersey against Mylan Laboratories Limited, Mylan Pharmaceuticals Inc., and Mylan Institutional LLC (collectively, Mylan). Mylan filed an ANDA seeking approval to market generic versions of INVEGA TRINZA® (546 mg) before expiration of United States Patent No. 10,143,693 (’693) relating to INVEGA TRINZA® (546 mg). Janssen is seeking an order enjoining Mylan from marketing a generic version of INVEGA TRINZA® before the expiration of the ’693 patent. Trial is scheduled to begin in October 2022.
In August 2021, Janssen initiated a patent infringement lawsuit in the United States District Court for the District of New Jersey against Mylan. Mylan filed an ANDA seeking approval to market generic versions of INVEGA TRINZA® (819 mg) before expiration of the ’693 patent. Janssen is seeking an order enjoining Mylan from marketing a generic version of INVEGA TRINZA® (819 mg) before the expiration of the ’693 patent.

In October 2021, Janssen initiated a patent infringement lawsuit in the United States District Court for the District of New Jersey against Mylan. Mylan filed an ANDA seeking approval to market generic versions of INVEGA TRINZA® (273 mg and 410 mg) before expiration of the ’693 patent. Janssen is seeking an order enjoining Mylan from marketing a generic version of INVEGA TRINZA® (273 mg and 410 mg) before the expiration of the ’693 patent.

In January 2022, the court consolidated the three cases into the case filed in September 2020.

IMBRUVICA®

In March 2019, Pharmacyclics LLC (Pharmacyclics) and Janssen Biotech, Inc. (JBI) filed a patent infringement lawsuit in the United States District Court for the District of Delaware against Alvogen Pine Brook LLC and Natco Pharma Ltd. (collectively, Alvogen), which filed an ANDA seeking approval to market generic versions of IMBRUVICA® tablets, asserting infringement of United States Patent Nos. 7,514,444; 8,003,309; 8,476,284; 8,497,277; 8,697,711; 8,753,403; 8,754,090; 8,754,091; 8,952,015; 8,957,079; 9,181,257; 9,296,753; 9,655,857; 9,725,455; 10,010,507; 10,106,548; and 10,125,140. In June 2019, Pharmacyclics and JBI amended their complaint against Alvogen to further allege infringement of United States Patent No. 10,213,386. Pharmacyclics and JBI are seeking an order enjoining the defendants from marketing generic versions of IMBRUVICA® before the expiration of the relevant patents.

Trial against Alvogen took place in October 2020. In August 2021, the District Court issued a decision in favor of Pharmacyclics and Janssen finding the asserted claims against Alvogen to be infringed and not invalid. Alvogen has appealed that decision.

In September 2021, Pharmacyclics and Janssen Inc. (Janssen Canada) initiated Statements of Claim under Section 6 of the Patented Medicines (Notice of Compliance) Regulations against Natco Pharma (Canada) Inc. (Natco) in response to Natco’s filing of two ANDSs seeking approval to market generic versions of IMBRUVICA® capsules before the expiration of Canadian Patent Nos. 2,663,116; 2,928,721; 2,800,913; 3,007,787; 3,007,788; 2,875,986; and 3,022,256. The trial is scheduled to begin in July 2023. Pharmacyclics and Janssen are seeking an order enjoining Natco from marketing its generic versions of IMBRUVICA® before the expiration of the relevant patents.

UPTRAVI®

In April 2020, Actelion Pharmaceuticals Ltd (Actelion) and Nippon Shinyaku Co., Ltd. (Nippon Shinyaku) initiated a patent infringement lawsuit in the United States District Court for the District of New Jersey against Zydus Pharmaceuticals (USA), Inc. and Zydus Worldwide DMCC (collectively, Zydus), who filed an ANDA seeking approval to market a generic version of UPTRAVI® before expiration of Nippon Shinyaku’s United States Patent Nos. 7,205,302 (’302); relating to UPTRAVI®. Actelion is the exclusive licensee of the ’302 patent. In January 2022, Actelion, Nippon Shinyaku and Zydus entered into a confidential settlement agreement and the lawsuit was dismissed.
GOVERNMENT PROCEEDINGS
Like other companies in the pharmaceutical, consumer health and medical devices industries, Johnson & Johnson and certain of its subsidiaries are subject to extensive regulation by national, state and local government agencies in the United States and other countries in which they operate. Such regulation has been the basis of government investigations and litigations. The most significant litigation brought by, and investigations conducted by, government agencies are listed below. It is possible that criminal charges and substantial fines and/or civil penalties or damages could result from government investigations or litigation.

Average Wholesale Price (AWP) Litigation
Johnson & Johnson and several of its pharmaceutical subsidiaries (the J&J AWP Defendants), along with numerous other pharmaceutical companies, were named as defendants in a series of lawsuits in state and federal courts involving allegations that the pricing and marketing of certain pharmaceutical products amounted to fraudulent and otherwise actionable conduct because, among other things, the companies allegedly reported an inflated Average Wholesale Price (AWP) for the drugs at issue. Payors alleged that they used those AWPs in calculating provider reimbursement levels. The plaintiffs in these cases included three classes of private persons or entities that paid for any portion of the purchase of the drugs at issue based on
AWP, and state government entities that made Medicaid payments for the drugs at issue based on AWP. Many of these cases, both federal actions and state actions removed to federal court, were consolidated for pre-trial purposes in a multi-district litigation in the United States District Court for the District of Massachusetts, where all claims against the J&J AWP Defendants were ultimately dismissed. The J&J AWP Defendants also prevailed in a case brought by the Commonwealth of Pennsylvania. Other AWP cases have been resolved through court order or settlement. The case brought by Illinois was settled after trial. In New Jersey, a putative class action based upon AWP allegations is pending against Centocor, Inc. and Ortho Biotech Inc. (both now Janssen Biotech, Inc.), Johnson & Johnson and ALZA Corporation. All other cases have been resolved.

Opioid Litigation
Beginning in 2014 and continuing to the present, Johnson & Johnson and Janssen Pharmaceuticals, Inc. (JPI), along with other pharmaceutical companies, have been named in approximately 3,400 lawsuits related to the marketing of opioids, including DURAGESIC®, NUCYNTA® and NUCYNTA® ER. The suits also raise allegations related to previously owned active pharmaceutical ingredient supplier subsidiaries, Tasmanian Alkaloids Pty, Ltd. and Noramco, Inc. (both subsidiaries were divested in 2016). The majority of the cases have been filed by state and local governments. Similar lawsuits have also been filed by private plaintiffs and organizations, including but not limited to the following: individual plaintiffs on behalf of children suffering from Neonatal Abstinence Syndrome; hospitals; and health insurers/payors. To date, complaints against pharmaceutical manufacturers, including Johnson & Johnson and JPI, have been filed by the state Attorneys General in Arkansas, Florida, Idaho, Illinois, Kentucky, Louisiana, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, South Dakota, Texas, Washington and West Virginia. Complaints against the manufacturers also have been filed in state or federal court by city, county and local government agencies in the following states: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. The Government of Puerto Rico filed suit in Superior Court of San Juan. There are over 380 cases pending in various state courts. There are close to 3,000 federal cases coordinated in a federal Multi-District Litigation (MDL) pending in the U.S. District Court for the Northern District of Ohio. In addition, the Province of British Columbia filed suit against Johnson & Johnson and its Canadian affiliate Janssen Inc., and many other industry members, in Canada, and is seeking to have that action certified as an opt in class action on behalf of other provincial/territorial and the federal governments in Canada. Additional proposed class actions have been filed in Canada against Johnson & Johnson and Janssen Inc., and many other industry members, by and on behalf of people who used opioids (for personal injuries), municipalities and First Nations bands. In October 2019, an antitrust complaint was filed by private plaintiffs in federal court in Tennessee and is pending transfer to the MDL. These actions allege a variety of claims related to opioid marketing practices, including false advertising, unfair competition, public nuisance, consumer fraud violations, deceptive acts and practices, false claims and unjust enrichment. The suits generally seek penalties and/or injunctive and monetary relief and, in some of the suits, the plaintiffs are seeking joint and several liability among the defendants. An adverse judgment in any of these lawsuits could result in the imposition of large monetary penalties and significant damages including, punitive damages, cost of abatement, substantial fines, equitable remedies and other sanctions.

In 2019, the trial in the matter filed by the Oklahoma Attorney General resulted in a judgment against Johnson & Johnson and JPI in the amount of $465 million. Johnson & Johnson and JPI appealed the judgment, and in November 2021, the Oklahoma Supreme Court reversed the trial court’s judgment. In October 2019 Johnson & Johnson and JPI announced a settlement of the first case set for trial in the MDL with two counties in Ohio. In April 2021, three California counties and the City of Oakland commenced a trial in California state court against Johnson & Johnson and JPI, and other affiliates, as well as three other pharmaceutical manufacturers. The trial concluded in October 2021, and in December 2021, the Court entered a final trial judgment in favor of Defendants on all claims. In February 2022, Plaintiffs' motion to set aside and vacate the judgment was denied.

In August 2019, Johnson & Johnson received a grand jury subpoena from the United States Attorney’s Office for the Eastern District of New York for documents related to the Company’s anti-diversion policies and procedures and distribution of its opioid medications, in what the Company understands to be part of a broader investigation into manufacturers’ and distributors’ monitoring programs and reporting under the Controlled Substances Act. In September 2019, Johnson & Johnson received subpoenas from the New York State Department of Financial Services (NYDFS) as part of an industry-wide inquiry into the effect of opioid prescriptions on New York health insurance premiums. In September 2020, the Company learned that NYDFS filed a statement of charges related to this investigation.

In June 2021, the Company and JPI announced a settlement agreement with the State of New York and its participating subdivisions, including Nassau County and Suffolk County, resolving their opioid-related claims against the Company on terms consistent with the Company’s previously announced agreement in principle to contribute up to $5 billion to all-in settlement of opioid-related claims by states, cities, counties, and tribal governments. The settlement provides New York and its participating subdivisions with up to $263 million to address opioid-related issues, reimburses attorney fees and costs, and removes the
Company and Janssen from a multi-defendant trial of opioid-related claims that commenced in Suffolk County in June 2021. In exchange, the Company and JPI receive releases from the claims asserted by New York and the participating parties, including NYDFS.
In October 2021, the Company and JPI announced a settlement agreement with the State of Texas and its participating subdivisions, including Dallas County, Bexar County, and Tarrant County, resolving their opioid-related claims against the Company on terms consistent with the Company’s previously announced agreement to contribute up to $5 billion to all-in settlement of opioid-related claims by states, cities, counties, and tribal governments. The settlement provides Texas and its participating subdivisions with up to $297 million to address opioid-related issues and reimburse attorney fees and costs, and removes the Company and Janssen from multi-defendant bellwether trials of opioid-related claims scheduled to commence in Texas state courts in early 2022. In exchange, the Company and JPI will receive releases from the claims asserted by Texas and the participating subdivisions.

Johnson & Johnson, JPI and other pharmaceutical companies have also received subpoenas or requests for information related to opioids marketing practices from the following state Attorneys General: Alaska, Indiana, Montana, New Hampshire, South Carolina, Tennessee, Texas and Washington. In September 2017, Johnson & Johnson and JPI were contacted by the Texas and Colorado Attorney General’s Offices on behalf of approximately 38 states regarding a multi-state Attorney General investigation. In October 2019, the Company announced a proposed agreement in principle that would include the Company paying $4 billion as settlement of these matters. In October 2020, the Company agreed to contribute up to an additional $1 billion to an all-in settlement amount that would resolve opioid lawsuits filed and future claims by states, cities, counties and tribal governments, for a total of $5 billion which has been accrued, subject to various conditions and an agreement being finalized. This agreement in principle is not an admission of liability or wrong-doing. In July 2021, the Company announced that the terms of the agreement to settle the state and subdivision claims have been finalized and up to one-third of the all-in settlement is expected to be paid within the next 12 months, depending upon the level of participation by the states and their subdivisions. The terms provide a period of time for states to elect to participate in the agreement and, thereafter, a period for the subdivisions of the participating states to opt-in. As of January 2022, 45 states, five territories, and the District of Columbia had elected to participate in the settlement. The subdivision opt-in period expired in January 2022. The Company retains the right to opt-out of the agreement until late February 2022 if, in its sole discretion, there is insufficient participation. Based on expected participation, the Company has committed in advance to proceed with the settlement in five of the participating states (New York, Texas, Florida, Nevada, and New Mexico) and with tribal governments, whose cases were scheduled for trial in 2021, 2022, or 2023.

From June 2017 through December 2019, the Company’s Board of Directors received a series of shareholder demand letters alleging breaches of fiduciary duties related to the marketing of opioids. The Board retained independent counsel to investigate the allegations in the demands, and in April 2020, independent counsel delivered a report to the Board recommending that the Company reject the shareholder demands and take the steps that are necessary or appropriate to secure dismissal of related derivative litigation. The Board unanimously adopted the recommendations of the independent counsel’s report.

In November 2019, one of the shareholders who sent a demand filed a derivative complaint against Johnson & Johnson as the nominal defendant and certain current and former directors and officers as defendants in the Superior Court of New Jersey. The complaint alleges breaches of fiduciary duties related to the marketing of opioids, and that Johnson & Johnson has suffered damages as a result of those alleged breaches. In May 2020, the shareholder filed an amended complaint challenging the Board’s rejection of his demand. In August 2020, Johnson & Johnson moved to dismiss the amended complaint. In February 2021, the Court held oral argument on Johnson & Johnson’s motion. In February 2022, the Court granted Johnson & Johnson’s motion to dismiss the amended complaint. In August 2020, another shareholder who sent a demand filed a separate derivative complaint in the same court making similar allegations. In October 2020, the Court granted defendants’ request to reassign the second-filed case to the division where the first-filed case is pending.

In December 2019, two additional shareholders who sent demands filed two separate derivative complaints making similar allegations against Johnson & Johnson as the nominal defendant and certain current and former directors and officers as defendants in the United States District for the District of New Jersey. In April 2020, the two federal cases were consolidated into a single action captioned In re Johnson & Johnson Opioid Stockholder Derivative Litigation. In July 2020, the shareholders filed a consolidated complaint. In September 2020, Johnson & Johnson moved to dismiss the consolidated complaint, and in December 2020, the shareholders opposed Johnson & Johnson’s motion. Johnson & Johnson filed its reply in February 2021. In July 2020, an additional shareholder who sent a demand filed a derivative complaint in the same federal court making similar allegations against the same defendants named in the consolidated action. In January 2021, pursuant to an order in the consolidated action, the third case was consolidated into the consolidated action. In February 2021, the Court granted the shareholders motion to voluntarily dismiss the consolidated action without prejudice, and the shareholders’ counsel then filed a notice of association in the first-filed derivative action pending in the Superior Court of New Jersey.
Other
In August 2012, DePuy Orthopaedics, Inc., DePuy, Inc. (now known as DePuy Synthes, Inc.), and Johnson & Johnson Services, Inc. (collectively DePuy) received an informal request from the United States Attorney’s Office for the District of Massachusetts and the Civil Division of the United States Department of Justice (the United States) for the production of materials relating to the DePuy ASR™ XL Hip device. In July 2014, the United States notified the United States District Court for the District of Massachusetts that it had declined to intervene in a qui tam case filed pursuant to the False Claims Act against the companies concerning the hip devices. In February 2016, the District Court granted the companies’ motion to dismiss with prejudice, unsealed the qui tam complaint, and denied the qui tam relators’ request for leave to file a further amended complaint. The qui tam relators appealed the case to the United States Court of Appeals for the First Circuit. In July 2017, the First Circuit affirmed the District Court’s dismissal in part, reversed in part, and affirmed the decision to deny the relators’ request to file a third amended complaint. In March 2021, DePuy filed its motion to strike and dismiss the relators’ second amended complaint; the District Court denied DePuy’s motion to strike and dismiss in July 2021. DePuy filed a motion for reconsideration of the District Court’s July 2021 ruling. In November 2021, the District Court granted DePuy’s motion for reconsideration and dismissed the case with prejudice. The District Court’s order was unsealed in December 2021. The Relators filed several post-dismissal motions, including a January 2022 omnibus motion for reconsideration. Following the District Court’s order dismissing the case with prejudice, DePuy filed a December 2021 motion seeking the recovery of attorneys’ fees.

In October 2012, Johnson & Johnson was contacted by the California Attorney General’s office regarding a multi-state Attorney General investigation of the marketing of surgical mesh products for hernia and urogynecological purposes by Johnson & Johnson’s subsidiary, Ethicon, Inc. (Ethicon). In May 2016, California and Washington filed civil complaints against Johnson & Johnson, Ethicon and Ethicon US, LLC alleging violations of their consumer protection statutes. Similar complaints were filed against the companies by the following states: Kentucky, Mississippi, West Virginia and Oregon. In April 2019, Johnson & Johnson and Ethicon settled the Washington case. The California case started trial in July 2019 and concluded in September 2019. In October 2019, Johnson & Johnson and Ethicon settled the multi-state investigation with 41 other states and the District of Columbia. In January 2020, the Court in California issued a statement of decision, finding in favor of the State of California, and awarded civil penalties in the amount of $344 million. In April 2020, the Court in California denied the Company’s motion for a new trial. In August 2020, the Court entered judgment with respect to the penalties of $344 million, but denied the Attorney General’s request for injunctive relief. The Company is appealing the penalty judgment. In April 2020, the Company settled the West Virginia case. In October 2020, the Company settled with the Attorney General of Oregon. Trial in the Kentucky matter is scheduled for May 2023.

In June 2014, the Mississippi Attorney General filed a complaint in Chancery Court of The First Judicial District of Hinds County, Mississippi against Johnson & Johnson and Johnson & Johnson Consumer Companies, Inc. (now known as Johnson & Johnson Consumer Inc.) (collectively, JJCI). The complaint alleges that JJCI violated the Mississippi Consumer Protection Act by failing to disclose alleged health risks associated with female consumers’ use of talc contained in JOHNSON’S® Baby Powder and JOHNSON’S® Shower to Shower (a product divested in 2012) and seeks injunctive and monetary relief. Johnson & Johnson and JJCI moved for summary judgment on the grounds that the State’s claim was barred by preemption, which the trial court denied. The Mississippi Supreme Court granted Johnson & Johnson and JJCI’s request to file an interlocutory appeal of the denial of the motion for summary judgment in late 2019. Briefing and oral argument were completed. Thereafter, the Court rejected the interlocutory appeal in April 2021 and remanded the matter to the trial court. Thereafter, the State moved for a trial setting. JJCI objected to any trial setting due to the LTL Bankruptcy and that any decision on whether the stay applied should be deferred to the LTL Bankruptcy court. The State opposed any stay and argued that the trial court should decide issues concerning the stay. The motion for trial setting and JJCI’s objections were heard in November 2021 and in January 2022, the Court granted plaintiff’s motion for trial setting and directed the parties to consult with the Court administrator to secure a trial date. That process is underway. In August 2021, JJCI filed a Petition for Writ of Certiorari in the United States Supreme Court as to the Mississippi Supreme Court’s ruling of April 2021, the State responded to the Petition for Writ of Certiorari in November 2021, the JJCI filed a reply in November 2021, and the United States Supreme Court denied the Petition for Writ of Certiorari in December 2021.

In January 2020, the State of New Mexico filed a consumer protection case alleging that the Company deceptively marketed and sold its talcum powder products by making misrepresentations about the safety of the products and the presence of carcinogens, including asbestos. The State of New Mexico filed an Amended Complaint in March 2020. The Company moved to dismiss certain of the claims in the Amended Complaint, which was granted. The Company then filed a motion for partial judgment on the pleadings in December 2020, which was denied. The Company made its first document production in February 2021 and discovery is currently scheduled to close on April 25, 2022.

Forty-two states and the District of Columbia have commenced a joint investigation into the Company’s marketing of its talcum powder products. At this time, the multi-state group has not asserted any claims against the Company. Five states have issued Civil Investigative Demands seeking documents and other information. The Company has produced documents to Arizona,
North Carolina, Texas, and Washington and entered into confidentiality agreements. The Company has not received any follow up requests from those states.

In March 2016, Janssen Pharmaceuticals, Inc. (JPI) received a Civil Investigative Demand from the United States Attorney’s Office for the Southern District of New York related to JPI’s contractual relationships with pharmacy benefit managers over the period from January 1, 2006 to the present with regard to certain of JPI’s pharmaceutical products. The demand was issued in connection with an investigation under the False Claims Act. The Company has provided documents in response to the demand.

In July 2016, Johnson & Johnson and Janssen Products LP were served with a qui tam complaint pursuant to the False Claims Act filed in the United States District Court for the District of New Jersey alleging the off-label promotion of two HIV products, PREZISTA® and INTELENCE®, and anti-kickback violations in connection with the promotion of these products. The complaint was filed under seal in December 2012. The federal and state governments have declined to intervene, and the lawsuit is being prosecuted by the relators. The Court denied summary judgment on all claims in December 2021. Daubert motions were granted in part and denied in part in January 2022, and the case is proceeding to trial.

In March 2017, Janssen Biotech, Inc. (JBI) received a Civil Investigative Demand from the United States Department of Justice regarding a False Claims Act investigation concerning management and advisory services provided to rheumatology and gastroenterology practices that purchased REMICADE® or SIMPONI ARIA®. In August 2019, the United States Department of Justice notified JBI that it was closing the investigation. Subsequently, the United States District Court for the District of Massachusetts unsealed a qui tam False Claims Act complaint, which was served on the Company. The Department of Justice had declined to intervene in the qui tam lawsuit in August 2019. The Company filed a motion to dismiss, which was granted in part and denied in part. Discovery is underway.

In April and September 2017, Johnson & Johnson received subpoenas from the United States Attorney for the District of Massachusetts seeking documents broadly relating to pharmaceutical copayment support programs for DARZALEX®, OLYSIO®, REMICADE®, SIMPONI®, STELARA® and ZYTIGA®. The subpoenas also seek documents relating to Average Manufacturer Price and Best Price reporting to the Center for Medicare and Medicaid Services related to those products, as well as rebate payments to state Medicaid agencies. The Company has provided documents in response to the subpoenas.

In June 2017, Johnson & Johnson received a subpoena from the United States Attorney’s Office for the District of Massachusetts seeking information regarding practices pertaining to the sterilization of DePuy Synthes, Inc.(DePuy) spinal implants at three hospitals in Boston as well as interactions of employees of Company subsidiaries with physicians at these hospitals. Johnson & Johnson and DePuy have produced documents in response to the subpoena and are fully cooperating with the government’s investigation.

In July 2018, the Public Prosecution Service in Rio de Janeiro and representatives from the Brazilian antitrust authority CADE inspected the offices of more than 30 companies including Johnson & Johnson do Brasil Indústria e Comércio de Produtos para Saúde Ltda. The authorities appear to be investigating allegations of possible anti-competitive behavior and possible improper payments in the medical device industry. The Company continues to respond to inquiries regarding the Foreign Corrupt Practices Act from the United States Department of Justice and the United States Securities and Exchange Commission.

From time to time, the Company has received requests from a variety of United States Congressional Committees to produce information relevant to ongoing congressional inquiries. It is the policy of Johnson & Johnson to cooperate with these inquiries by producing the requested information.
GENERAL LITIGATION
In March and April 2015, over 30 putative class action complaints were filed by contact lens patients in a number of courts around the United States against Johnson & Johnson Vision Care, Inc. (JJVCI) and other contact lens manufacturers, distributors, and retailers, alleging vertical and horizontal conspiracies to fix the retail prices of contact lenses. The complaints allege that the manufacturers reached agreements with each other and certain distributors and retailers concerning the prices at which some contact lenses could be sold to consumers. The plaintiffs are seeking damages and injunctive relief. All of the class action cases were transferred to the United States District Court for the Middle District of Florida in June 2015. The plaintiffs filed a consolidated class action complaint in November 2015. Discovery and pre-trial motion practice are complete. Trial is scheduled to begin in March 2022.

Beginning in September 2017, multiple purported class actions were filed on behalf of indirect purchasers of REMICADE® against Johnson & Johnson and Janssen Biotech, Inc. (collectively, Janssen) alleging that Janssen has violated federal antitrust laws through its contracting strategies for REMICADE®. The cases were consolidated for pre-trial purposes as In re
REMICADE® Antitrust Litigation in United States District Court for the Eastern District of Pennsylvania. The consolidated complaint seeks damages and injunctive relief. Discovery is ongoing.

In June 2018, Walgreen Co. and Kroger Co., filed an antitrust complaint against Johnson & Johnson and Janssen Biotech, Inc. (collectively, Janssen) in the United States District Court for the Eastern District of Pennsylvania. The complaint alleges that Janssen has violated federal antitrust laws through its contracting strategies for REMICADE®. The complaint seeks damages and injunctive relief. In March 2019, summary judgment was granted in favor of Janssen. In February 2020, the United States Court of Appeals for the Third Circuit reversed the District Court’s decision. This matter was settled in January 2022.

In June 2019, the United States Federal Trade Commission (FTC) issued a Civil Investigative Demand to Johnson & Johnson in connection with its investigation of whether Janssen’s REMICADE® contracting practices violate federal antitrust laws. The Company has produced documents and information responsive to the Civil Investigative Demand.

In October 2017, certain United States service members and their families brought a complaint against a number of pharmaceutical and medical devices companies, including Johnson & Johnson and certain of its subsidiaries in United States District Court for the District of Columbia, alleging that the defendants violated the United States Anti-Terrorism Act. The complaint alleges that the defendants provided funding for terrorist organizations through their sales practices pursuant to pharmaceutical and medical device contracts with the Iraqi Ministry of Health. In July 2020, the District Court dismissed the complaint. In January 2022, the United States Court of Appeals for the District of Columbia Circuit reversed the District Court’s decision.

In October 2018, two separate putative class actions were filed against Actelion Pharmaceutical Ltd., Actelion Pharmaceuticals U.S., Inc., and Actelion Clinical Research, Inc. (collectively Actelion) in United States District Court for the District of Maryland and United States District Court for the District of Columbia. The complaints allege that Actelion violated state and federal antitrust and unfair competition laws by allegedly refusing to supply generic pharmaceutical manufacturers with samples of TRACLEER®. TRACLEER® is subject to a Risk Evaluation and Mitigation Strategy required by the Food and Drug Administration, which imposes restrictions on distribution of the product. In January 2019, the plaintiffs dismissed the District of Columbia case and filed a consolidated complaint in the United States District Court for the District of Maryland. In October 2019, the Court granted Actelion’s motion to dismiss the amended complaint. In April 2021, the United States Court of Appeals for the Fourth Circuit reversed and remanded. Discovery is ongoing.

In December 2018, Janssen Biotech, Inc., Janssen Oncology, Inc, Janssen Research & Development, LLC, and Johnson & Johnson (collectively, Janssen) were served with a qui tam complaint filed on behalf of the United States, 28 states, and the District of Columbia. The complaint, which was filed in December 2017 in United States District Court for the Northern District of California, alleges that Janssen violated the federal False Claims Act and state law when providing pricing information for ZYTIGA® to the government in connection with direct government sales and government-funded drug reimbursement programs. At this time, the federal and state governments have declined to intervene. The case has been transferred to United States District Court for the District of New Jersey. Janssen’s motion to dismiss was denied in December 2021.

In May 2019, a class action antitrust complaint was filed against Janssen R&D Ireland (Janssen) and Johnson & Johnson in the United States District Court for the Northern District of California. The complaint alleges that Janssen violated federal and state antitrust and consumer protection laws by agreeing to exclusivity provisions in its agreements with Gilead concerning the development and marketing of combination antiretroviral therapies (cART) to treat HIV. The complaint also alleges that Gilead entered into similar agreements with Bristol-Myers Squibb and Japan Tobacco. In March 2020, the Court granted in part and denied in part defendants’ motions to dismiss. Plaintiffs filed an amended complaint in April 2020. Defendants moved to dismiss the amended complaint. In July 2020, the Court granted in part and denied in part the renewed motion to dismiss. In December 2021, several insurance companies and other payers filed individual “Opt-Out” complaints containing allegations similar to the original complaint. Discovery is ongoing.

In October 2019, Innovative Health, LLC filed a complaint against Biosense Webster, Inc. (BWI) in the United States District Court for the Middle District of California. The complaint alleges that certain of BWI’s business practices and contractual terms violate the antitrust laws of the United States and the State of California by restricting competition in the sale of High Density Mapping Catheters and Ultrasound Catheters. In January 2020, BWI filed a motion to dismiss the complaint. In August 2020, the Court granted in part and denied in part BWI’s motion to dismiss. In December 2021, BWI filed a motion for summary judgment. The trial is set for April 2022.

In November 2019, Johnson & Johnson received a demand for indemnification from Pfizer Inc., pursuant to the 2006 Stock and Asset Purchase Agreement between the Company and Pfizer. Also in November 2019, Johnson & Johnson Inc. received a demand for indemnification from Sanofi Consumer Health, Inc., pursuant to the 2016 Asset Purchase Agreement between Johnson & Johnson Inc. and Sanofi. In January 2020, Johnson & Johnson received a demand for indemnification from
Boehringer Ingelheim Pharmaceuticals, Inc., pursuant to the 2006 Asset Purchase Agreement among the Company, Pfizer, and Boehringer Ingelheim. The notices seek indemnification for legal claims related to over-the-counter ZANTAC® (ranitidine) products. Plaintiffs in the underlying actions allege that ZANTAC® and other over-the-counter ranitidine medications contain unsafe levels of NDMA (N-nitrosodimethylamine) and can cause and/or have caused various cancers in patients using the products, and seek injunctive and monetary relief.

In October 2020, Fortis Advisors LLC (Fortis), in its capacity as representative of the former stockholders of Auris Health Inc. (Auris), filed a complaint against Johnson & Johnson, Ethicon Inc., and certain named officers and employees (collectively, Ethicon) in the Court of Chancery of the State of Delaware. The complaint alleges breach of contract, fraud, and other causes of action against Ethicon in connection with Ethicon’s acquisition of Auris in 2019. The complaint seeks damages and other relief. In December 2021, the Court granted in part and denied in part defendants’ motion to dismiss certain causes of action. All claims against the individual defendants were dismissed.

Beginning in May 2021, multiple putative class actions were filed in state and federal courts (California, Florida, New York, and New Jersey) against various Johnson & Johnson entities alleging violations of state consumer fraud statutes based on nondisclosure of alleged benzene contamination of certain Neutrogena and Aveeno sunscreen products and the affirmative promotion of those products as “safe”; and, in at least one case, alleging a strict liability manufacturing defect and failure to warn claims, asserting that the named plaintiffs suffered unspecified injuries as a result of alleged exposure to benzene. The Judicial Panel on Multi-District Litigation has consolidated all pending actions, except one product liability case and one case pending in New Jersey state court, in the United States District Court for the Southern District of Florida, Fort Lauderdale Division. In October 2021, the Company reached an agreement in principle for the settlement of a nationwide class, encompassing the claims of the consolidated actions, subject to approval by the Florida federal Court. In December 2021, plaintiffs in the consolidated actions filed a motion for preliminary approval of a nationwide class settlement.

Johnson & Johnson (subsequently substituted by Johnson & Johnson Consumer Inc. (JJCI)) along with more than 120 other companies, is a defendant in a cost recovery and contribution action brought by Occidental Chemical Corporation in June 2018 in the United States District Court for the District of New Jersey, related to the clean-up of a section of the Lower Passaic River in New Jersey.

Johnson & Johnson or its subsidiaries are also parties to a number of proceedings brought under the Comprehensive Environmental Response, Compensation, and Liability Act, commonly known as Superfund, and comparable state, local or foreign laws in which the primary relief sought is the cost of past and/or future remediation.
v3.22.0.1
Restructuring
 12 Months Ended
Jan. 02, 2022
Restructuring and Related Activities [Abstract]  
Restructuring Restructuring
In the fiscal second quarter of 2018, the Company announced plans to implement a series of actions across its Global Supply Chain that are intended to focus resources and increase investments in the critical capabilities, technologies and solutions necessary to manufacture and supply its product portfolio, enhance agility and drive growth. The Global Supply Chain actions include expanding the use of strategic collaborations and bolstering initiatives to reduce complexity, improve cost-competitiveness, enhance capabilities and optimize the Supply Chain network. In fiscal year 2021, the Company recorded a pre-tax charge of $0.5 billion, which is included on the following lines of the Consolidated Statement of Earnings, $0.3 billion in restructuring, $0.1 billion in other (income) expense and $0.1 billion in cost of products sold. Total project costs of approximately $1.8 billion have been recorded since the restructuring was announced. See the following table for additional details on the restructuring program.
In total, the Company expects the Global Supply Chain actions to generate approximately $0.6 billion to $0.8 billion in annual pre-tax cost savings that will be substantially delivered by the end of 2022. The program is set to be completed at the end of 2022. The Company expects to record pre-tax restructuring charges of approximately $2.1 billion to $2.3 billion, over the 4 to 5 year period of this activity. These costs are associated with network optimizations, exit costs and accelerated depreciation and amortization.   

The following table summarizes the severance charges and the associated spending under these initiatives through the fiscal year ended 2021:
(Dollars in Millions)SeveranceAsset Write-offs/Sales
Other(2)
Total
Reserve balance, December 29, 2019
$164 — 16 180 
2020 activity(29)— (7)(36)
Reserve balance, January 3, 2021
135 — 9 144 
Current year activity:
   Charges — 53 420 473 
   Cash settlements(23)(404)(427)
   Settled non cash — (53)(53)
Reserve balance, January 2, 2022(1)
$112 — 25 137 
(1) Cash outlays for severance are expected to be substantially paid out over the next year in accordance with the Company's plans and local laws.
(2) Other includes project expense such as salaries for employees supporting these initiatives and consulting expenses.
The Company continuously reevaluates its severance reserves related to restructuring and the timing of payments due to the planned release of associates regarding several longer-term projects. The Company believes that the existing severance reserves are sufficient to cover the Global Supply Chain plans given the period over which the actions will take place. The Company will continue to assess and make adjustments as necessary if additional amounts become probable and estimable.
v3.22.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Jan. 02, 2022
Accounting Policies [Abstract]  
Principles of Consolidation
Principles of Consolidation
The consolidated financial statements include the accounts of Johnson & Johnson and its subsidiaries (the Company). Intercompany accounts and transactions are eliminated. Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures.
Description of the Company And Business Segments
Description of the Company and Business Segments
The Company has approximately 141,700 employees worldwide engaged in the research and development, manufacture and sale of a broad range of products in the healthcare field. The Company conducts business in virtually all countries of the world and its primary focus is on products related to human health and well-being.
The Company is organized into three business segments: Consumer Health, Pharmaceutical and Medical Devices. The Consumer Health segment includes a broad range of products used in the Baby Care, Oral Care, Skin Health/Beauty, Over-the-Counter pharmaceutical, Women’s Health and Wound Care markets. These products are marketed to the general public and sold online (eCommerce) and to retail outlets and distributors throughout the world. The Pharmaceutical segment is focused on six therapeutic areas, including Immunology, Infectious diseases, Neuroscience, Oncology, Pulmonary Hypertension, and Cardiovascular and Metabolic diseases. Products in this segment are distributed directly to retailers, wholesalers, distributors, hospitals and healthcare professionals for prescription use. The Medical Devices segment includes a broad range of products used in the Orthopaedic, Surgery, Interventional Solutions (cardiovascular and neurovascular) and Vision fields. These products are distributed to wholesalers, hospitals and retailers, and used principally in the professional fields by physicians, nurses, hospitals, eye care professionals and clinics.
In November 2021, the Company announced its intention to separate the Company’s Consumer Health business, with the intention to create a new, publicly traded company. The Company is targeting completion of the planned separation in 18 to 24 months after initial announcement.
New Accounting Standards
New Accounting Standards
Recently Adopted Accounting Standards

There were no new material accounting standards adopted in fiscal 2021.

Recently Issued Accounting Standards
Not Adopted as of January 2, 2022
The Company assesses the adoption impacts of recently issued accounting standards by the Financial Accounting Standards Board on the Company's financial statements as well as material updates to previous assessments, if any, from the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2021. There were no new material accounting standards issued in fiscal 2021 that impacted the Company.

ASU 2021-01: Reference Rate Reform
In mid- 2017, the Financial Conduct Authority (FCA) announced that it will no longer require banks to submit rates for the London Interbank Offered Rate (LIBOR) after 2021 hence market participants should work to transition to alternative reference rates (Reference Rate Reform) and should not rely on LIBOR being available after the end of 2021. Reference rate reform is the term used to refer to the efforts that have been undertaken by regulators and other market participants to introduce new reference rates that are based on a larger and more liquid population of observable transactions. The Company evaluated the implications of reference rate reform and applicable financial reporting guidance in ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting on its key financial and commercial contracts that referenced LIBOR including any hedging relationships. Most contracts reviewed will mature prior to the termination of LIBOR or will be modified to apply a new reference rate (primarily the Secured Overnight Financing Rate “SOFR” where applicable). The company also applied available practical expedients under ASC 848 to in scope financial and commercial contracts that previously referenced LIBOR when applicable. As a result, the Company's implementation of any reference rate reform provisions to commercial and financial contracts did not result in any material change for the Company.
Cash Equivalents
Cash Equivalents
The Company classifies all highly liquid investments with stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months from the date of purchase as current marketable securities. The Company has a policy of making investments only with commercial institutions that have
at least an investment grade credit rating. The Company invests its cash primarily in government securities and obligations, corporate debt securities, money market funds and reverse repurchase agreements (RRAs).
RRAs are collateralized by deposits in the form of Government Securities and Obligations for an amount not less than 102% of their value. The Company does not record an asset or liability as the Company is not permitted to sell or repledge the associated collateral. The Company has a policy that the collateral has at least an A (or equivalent) credit rating. The Company utilizes a third party custodian to manage the exchange of funds and ensure that collateral received is maintained at 102% of the value of the RRAs on a daily basis. RRAs with stated maturities of greater than three months from the date of purchase are classified as marketable securities.
Investments InvestmentsInvestments classified as held to maturity investments are reported at amortized cost and realized gains or losses are reported in earnings. Investments classified as available-for-sale debt securities are carried at estimated fair value with unrealized gains and losses recorded as a component of accumulated other comprehensive income. Available-for-sale securities available for current operations are classified as current assets otherwise, they are classified as long term. Management determines the appropriate classification of its investment in debt and equity securities at the time of purchase and re-evaluates such determination at each balance sheet date. The Company reviews its investments for impairment and adjusts these investments to fair value through earnings, as required.
Property, Plant and Equipment and Depreciation
Property, Plant and Equipment and Depreciation
Property, plant and equipment are stated at cost. The Company utilizes the straight-line method of depreciation over the estimated useful lives of the assets:
Building and building equipment
20 - 30 years
Land and leasehold improvements
10 - 20 years
Machinery and equipment
2 - 13 years

The Company capitalizes certain computer software and development costs, included in machinery and equipment, when incurred in connection with developing or obtaining computer software for internal use. Capitalized software costs are amortized over the estimated useful lives of the software, which generally range from 3 to 8 years.
The Company reviews long-lived assets to assess recoverability using undiscounted cash flows. When certain events or changes in operating or economic conditions occur, an impairment assessment may be performed on the recoverability of the carrying value of these assets. If the asset is determined to be impaired, the loss is measured based on the difference between the asset’s fair value and its carrying value. If quoted market prices are not available, the Company will estimate fair value using a discounted value of estimated future cash flows.
Revenue Recognition
Revenue Recognition
The Company recognizes revenue from product sales when obligations under the terms of a contract with the customer are satisfied; generally, this occurs with the transfer of control of the goods to customers. The Company's global payment terms are typically between 30 to 90 days. Provisions for certain rebates, sales incentives, trade promotions, coupons, product returns, discounts to customers and governmental clawback provisions are accounted for as variable consideration and recorded as a reduction in sales. The liability is recognized within Accrued Rebates, Returns, and Promotions on the consolidated balance sheet.
Product discounts granted are based on the terms of arrangements with direct, indirect and other market participants, as well as market conditions, including consideration of competitor pricing. Rebates are estimated based on contractual terms, historical experience, patient outcomes, trend analysis and projected market conditions in the various markets served. A significant portion of the liability related to rebates is from the sale of the Company's pharmaceutical products within the U.S., primarily the Managed Care, Medicare and Medicaid programs, which amounted to $7.7 billion and $7.2 billion as of January 2, 2022 and January 3, 2021, respectively. The Company evaluates market conditions for products or groups of products primarily through the analysis of wholesaler and other third-party sell-through and market research data, as well as internally generated information.
Sales returns are estimated and recorded based on historical sales and returns information. Products that exhibit unusual sales or return patterns due to dating, competition or other marketing matters are specifically investigated and analyzed as part of the accounting for sales return accruals.
Sales returns allowances represent a reserve for products that may be returned due to expiration, destruction in the field, or in specific areas, product recall. The sales returns reserve is based on historical return trends by product and by market as a percent to gross sales. In accordance with the Company’s accounting policies, the Company generally issues credit to customers for returned goods. The Company’s sales returns reserves are accounted for in accordance with the U.S. GAAP guidance for revenue recognition when right of return exists. Sales returns reserves are recorded at full sales value. Sales returns in the Consumer Health and Pharmaceutical segments are almost exclusively not resalable. Sales returns for certain franchises in the
Medical Devices segment are typically resalable but are not material. The Company infrequently exchanges products from inventory for returned products. The sales returns reserve for the total Company has been approximately 1.0% of annual net trade sales during each of the fiscal years 2021, 2020 and 2019.
Promotional programs, such as product listing allowances and cooperative advertising arrangements, are recorded in the same period as related sales. Continuing promotional programs include coupons and volume-based sales incentive programs. The redemption cost of consumer coupons is based on historical redemption experience by product and value. Volume-based incentive programs are based on the estimated sales volumes for the incentive period and are recorded as products are sold. These arrangements are evaluated to determine the appropriate amounts to be deferred or recorded as a reduction of revenue. The Company also earns profit-share payments through collaborative arrangements for certain products, which are included in sales to customers. For all years presented, profit-share payments were less than 3.0% of the total revenues and are included in sales to customers.
See Note 17 to the Consolidated Financial Statements for further disaggregation of revenue.
Shipping and Handling
Shipping and Handling
Shipping and handling costs incurred were $1.1 billion, $1.0 billion and $1.0 billion in fiscal years 2021, 2020 and 2019, respectively, and are included in selling, marketing and administrative expense. The amount of revenue received for shipping and handling is less than 0.5% of sales to customers for all periods presented.
Inventories
Inventories
Inventories are stated at the lower of cost or net realizable value determined by the first-in, first-out method.
Intangible Assets and Goodwill
Intangible Assets and Goodwill
The authoritative literature on U.S. GAAP requires that goodwill and intangible assets with indefinite lives be assessed annually for impairment. The Company completed its annual impairment test for 2021 in the fiscal fourth quarter. Future impairment tests will be performed annually in the fiscal fourth quarter, or sooner if warranted. Purchased in-process research and development is accounted for as an indefinite lived intangible asset until the underlying project is completed, at which point the intangible asset will be accounted for as a definite lived intangible asset, or abandoned, at which point the intangible asset will be written off or partially impaired.
Intangible assets that have finite useful lives continue to be amortized over their useful lives, and are reviewed for impairment when warranted by economic conditions. See Note 5 for further details on Intangible Assets and Goodwill.
Financial Instruments
Financial Instruments
As required by U.S. GAAP, all derivative instruments are recorded on the balance sheet at fair value. Fair value is the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement determined using assumptions that market participants would use in pricing an asset or liability. The authoritative literature establishes a three-level hierarchy to prioritize the inputs used in measuring fair value, with Level 1 having the highest priority and Level 3 having the lowest. Changes in the fair value of derivatives are recorded each period in current earnings or other comprehensive income, depending on whether the derivative is designated as part of a hedge transaction, and if so, the type of hedge transaction.
The Company documents all relationships between hedged items and derivatives. The overall risk management strategy includes reasons for undertaking hedge transactions and entering into derivatives. The objectives of this strategy are: (1) minimize foreign currency exposure’s impact on the Company’s financial performance; (2) protect the Company’s cash flow from adverse movements in foreign exchange rates; (3) ensure the appropriateness of financial instruments; and (4) manage the enterprise risk associated with financial institutions. See Note 6 for additional information on Financial Instruments.
Leases
Leases
The Company determines whether an arrangement is a lease at contract inception by establishing if the contract conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Right of Use (ROU) Assets and Lease Liabilities for operating leases are included in Other assets, Accrued liabilities, and Other liabilities on the consolidated balance sheet. The ROU Assets represent the right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. Commitments under finance leases are not significant, and are included in Property, plant and equipment, Loans and notes payable, and Long-term debt on the consolidated balance sheet.
ROU Assets and Lease Liabilities are recognized at the lease commencement date based on the present value of all minimum lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments, when the implicit rate is not readily determinable. Lease terms may include options to extend or terminate the lease. These options are included in the lease term when it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term. The Company has elected the following policy elections on adoption: use of portfolio approach
on leases of assets under master service agreements, exclusion of short term leases on the balance sheet, and not separating lease and non-lease components.
The Company primarily has operating lease for space, vehicles, manufacturing equipment and data processing equipment. The ROU asset pertaining to operating leases was $0.9 billion and $1.0 billion in 2021 and 2020, respectively. The lease liability was $1.0 billion and $1.1 billion in 2021and 2020, respectively. The operating lease costs were $0.3 billion, $0.3 billion and $0.3 billion in 2021, 2020 and 2019, respectively. Cash paid for amounts included in the measurement of lease liabilities were $0.3 billion, $0.3 billion and $0.3 billion in 2021, 2020 and 2019, respectively.
Product Liability
Product Liability
Accruals for product liability claims are recorded, on an undiscounted basis, when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on existing information and actuarially determined estimates where applicable. The accruals are adjusted periodically as additional information becomes available. The Company accrues an estimate of the legal defense costs needed to defend each matter when those costs are probable and can be reasonably estimated. To the extent adverse verdicts have been rendered against the Company, the Company does not record an accrual until a loss is determined to be probable and can be reasonably estimated.
The Company has self insurance through a wholly-owned captive insurance company. In addition to accruals in the self insurance program, claims that exceed the insurance coverage are accrued when losses are probable and amounts can be reasonably estimated.
Research and Development
Research and Development
Research and development expenses are expensed as incurred in accordance with ASC 730, Research and Development. Upfront and milestone payments made to third parties in connection with research and development collaborations are expensed as incurred up to the point of regulatory approval. Payments made to third parties subsequent to regulatory approval are capitalized and amortized over the remaining useful life of the related product. Amounts capitalized for such payments are included in other intangibles, net of accumulated amortization.
The Company enters into collaborative arrangements, typically with other pharmaceutical or biotechnology companies, to develop and commercialize drug candidates or intellectual property. These arrangements typically involve two (or more) parties who are active participants in the collaboration and are exposed to significant risks and rewards dependent on the commercial success of the activities. These collaborations usually involve various activities by one or more parties, including research and development, marketing and selling and distribution. Often, these collaborations require upfront, milestone and royalty or profit share payments, contingent upon the occurrence of certain future events linked to the success of the asset in development. Amounts due from collaborative partners related to development activities are generally reflected as a reduction of research and development expense because the performance of contract development services is not central to the Company’s operations. In general, the income statement presentation for these collaborations is as follows:
Nature/Type of Collaboration Statement of Earnings Presentation
Third-party sale of product & profit share payments receivedSales to customers
Royalties/milestones paid to collaborative partner (post-regulatory approval)*Cost of products sold
Royalties received from collaborative partnerOther income (expense), net
Upfront payments & milestones paid to collaborative partner (pre-regulatory approval)Research and development expense
Research and development payments to collaborative partnerResearch and development expense
Research and development payments received from collaborative partner or government entityReduction of Research and development expense
*Milestones are capitalized as intangible assets and amortized to cost of products sold over the useful life.
For all years presented, there was no individual project that represented greater than 5% of the total annual consolidated research and development expense.
The Company has a number of products and compounds developed in collaboration with strategic partners including XARELTO®, co-developed with Bayer HealthCare AG and IMBRUVICA®, developed in collaboration and co-marketed with Pharmacyclics LLC, an AbbVie company.
Separately, the Company has a number of licensing arrangements for products and compounds including DARZALEX®, licensed from Genmab A/S.
Advertising
Advertising
Costs associated with advertising are expensed in the year incurred and are included in selling, marketing and administrative expenses. Advertising expenses worldwide, which comprised television, radio, print media and Internet advertising, were $2.7 billion, $2.1 billion and $2.2 billion in fiscal years 2021, 2020 and 2019, respectively.
Income Taxes
Income Taxes
Income taxes are recorded based on amounts refundable or payable for the current year and include the results of any difference between U.S. GAAP accounting and tax reporting, recorded as deferred tax assets or liabilities. The Company estimates deferred tax assets and liabilities based on enacted tax regulations and rates. Future changes in tax laws and rates may affect recorded deferred tax assets and liabilities in the future.
The Company has unrecognized tax benefits for uncertain tax positions. The Company follows U.S. GAAP which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Management believes that changes in these estimates would not have a material effect on the Company's results of operations, cash flows or financial position.
In 2017, the United States enacted into law new U.S. tax legislation, the U.S. Tax Cuts and Jobs Act (TCJA). This law included provisions for a comprehensive overhaul of the corporate income tax code, including a reduction of the statutory corporate tax rate from 35% to 21%, effective on January 1, 2018. The TCJA included a provision for a tax on all previously undistributed earnings of U.S. companies located in foreign jurisdictions. Undistributed earnings in the form of cash and cash equivalents were taxed at a rate of 15.5% and all other earnings were taxed at a rate of 8.0%. This tax is payable over 8 years and will not accrue interest. These payments began in 2018 and will continue through 2025. The remaining balance at the end of the 2021 was approximately $6.9 billion, of which $6.1 billion is classified as noncurrent and reflected as “Long-term taxes payable” on the Company’s balance sheet. The balance of this account is related to receivables from tax authorities not expected to be received in the next 12 months.
The TCJA also includes provisions for a tax on global intangible low-taxed income (GILTI). GILTI is described as the excess of a U.S. shareholder’s total net foreign income over a deemed return on tangible assets, as provided by the TCJA. In January 2018, the FASB issued guidance that allows companies to elect as an accounting policy whether to record the tax effects of GILTI in the period the tax liability is generated (i.e., “period cost”) or provide for deferred tax assets and liabilities related to basis differences that exist and are expected to effect the amount of GILTI inclusion in future years upon reversal (i.e., “deferred method”). The Company has elected to account for GILTI under the deferred method. The deferred tax amounts recorded are based on the evaluation of temporary differences that are expected to reverse as GILTI is incurred in future periods.
The Company has recorded deferred tax liabilities on all undistributed earnings prior to December 31, 2017 from its international subsidiaries. The Company has not provided deferred taxes on the undistributed earnings subsequent to January 1, 2018 from certain international subsidiaries where the earnings are considered to be indefinitely reinvested. The Company intends to continue to reinvest these earnings in those international operations. If the Company decides at a later date to repatriate these earnings to the U.S., the Company would be required to provide for the net tax effects on these amounts. The Company estimates that the tax effect of this repatriation would be approximately $0.7 billion under currently enacted tax laws and regulations and at current currency exchange rates. This amount does not include the possible benefit of U.S. foreign tax credits, which may substantially offset this cost.
See Note 8 to the Consolidated Financial Statements for further information regarding income taxes.
Net Earnings Per Share
Net Earnings Per Share
Basic earnings per share is computed by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities were exercised or converted into common stock using the treasury stock method.
Use of Estimates
Use of Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported. Estimates are used when accounting for sales discounts, rebates, allowances and incentives, product liabilities, income taxes, withholding taxes, depreciation, amortization, employee benefits, contingencies and intangible asset and liability valuations. Actual results may or may not differ from those estimates.
The Company follows the provisions of U.S. GAAP when recording litigation related contingencies. A liability is recorded when a loss is probable and can be reasonably estimated. The best estimate of a loss within a range is accrued; however, if no estimate in the range is better than any other, the minimum amount is accrued.
The extent to which COVID-19 impacts the Company’s business and financial results will depend on numerous evolving factors including, but not limited to: the magnitude and duration of COVID-19, the extent to which it will impact worldwide macroeconomic conditions including interest rates, employment rates and health insurance coverage, the speed of the anticipated recovery, and governmental and business reactions to the pandemic. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of January 2, 2022 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s allowance for doubtful accounts and credit losses, inventory and related reserves, accrued rebates and associated reserves, and the carrying value of the goodwill and other long-lived assets along with the Company’s on-going vaccine development and distribution efforts. While there was not a material impact to the Company’s consolidated financial statements as of and for the fiscal year ended January 2, 2022, the Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods.
Annual Closing Date
Annual Closing Date
The Company follows the concept of a fiscal year, which ends on the Sunday nearest to the end of the month of December. Normally each fiscal year consists of 52 weeks, but every five or six years the fiscal year consists of 53 weeks, and therefore includes additional shipping days, as was the case in fiscal year 2020, and will be the case again in fiscal year 2026.
Reclassification
Reclassification
Certain prior period amounts have been reclassified to conform to current year presentation.
v3.22.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Jan. 02, 2022
Accounting Policies [Abstract]  
Estimated Useful Lives of Assets Property, plant and equipment are stated at cost. The Company utilizes the straight-line method of depreciation over the estimated useful lives of the assets:
Building and building equipment
20 - 30 years
Land and leasehold improvements
10 - 20 years
Machinery and equipment
2 - 13 years
v3.22.0.1
Cash, Cash Equivalents and Current Marketable Securities (Tables)
 12 Months Ended
Jan. 02, 2022
Cash and Cash Equivalents [Abstract]  
Cash and Cash Equivalent Composition
At the end of the fiscal year 2021 and 2020, cash, cash equivalents and current marketable securities were comprised of:
(Dollars in Millions)2021
Carrying AmountUnrecognized LossEstimated Fair ValueCash & Cash EquivalentsCurrent Marketable Securities
Cash$2,936 — 2,936 2,936 — 
Non-U.S. Sovereign Securities(1)
1,006 — 1,006 90 916 
U.S. Reverse repurchase agreements1,659 — 1,659 1,659 — 
Corporate debt securities(1)
3,479 (1)3,478 200 3,279 
Money market funds1,901 — 1,901 1,901 — 
Time deposits(1)
900 — 900 900 — 
    Subtotal $11,881 (1)11,880 7,686 4,195 
U.S. Gov't Securities$19,485 (4)19,481 6,785 12,696 
Other Sovereign Securities1 — 1 1 — 
Corporate debt securities245 — 245 15 230 
   Subtotal available for sale(2)
$19,731 (4)19,727 6,801 12,926 
Total cash, cash equivalents and current marketable securities$14,487 17,121 


(Dollars in Millions)2020
Carrying AmountUnrecognized GainEstimated Fair ValueCash & Cash EquivalentsCurrent Marketable Securities
Cash$2,863 — 2,863 2,863 — 
Non-U.S. Sovereign Securities(1)
690 — 690 — 690 
U.S. Reverse repurchase agreements1,937 — 1,937 1,937 — 
Corporate debt securities(1)
2,674 — 2,674 1,451 1,223 
Money market funds2,102 — 2,102 2,102 — 
Time deposits(1)
877 — 877 877 — 
    Subtotal $11,143 — 11,143 9,230 1,913 
Gov't Securities$13,777 1 13,778 4,731 9,047 
Other Sovereign Securities14 — 14 — 14 
Corporate debt securities250 — 250 24 226 
   Subtotal available for sale(2)
$14,041 1 14,042 4,755 9,287 
Total cash, cash equivalents and current marketable securities$13,985 11,200 

(1) Held to maturity investments are reported at amortized cost and realized 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.
Contractual Maturities of Available for Sale Securities The contractual maturities of the available for sale debt securities at January 2, 2022 are as follows:
(Dollars in Millions)Cost BasisFair Value
Due within one year$19,709 19,705 
Due after one year through five years22 22 
Due after five years through ten years— — 
Total debt securities$19,731 19,727 
v3.22.0.1
Inventories (Tables)
 12 Months Ended
Jan. 02, 2022
Inventory Disclosure [Abstract]  
Summary of Inventories At the end of fiscal years 2021 and 2020, inventories were comprised of:
(Dollars in Millions)20212020
Raw materials and supplies$1,592 1,410 
Goods in process2,287 2,040 
Finished goods6,508 5,894 
Total inventories$10,387 9,344 
v3.22.0.1
Property, Plant and Equipment (Tables)
 12 Months Ended
Jan. 02, 2022
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment at Cost and Accumulated Depreciation At the end of fiscal years 2021 and 2020, property, plant and equipment at cost and accumulated depreciation were:
(Dollars in Millions)20212020
Land and land improvements$884 882 
Buildings and building equipment12,882 12,502 
Machinery and equipment29,774 29,104 
Construction in progress4,139 4,316 
Total property, plant and equipment, gross$47,679 46,804 
Less accumulated depreciation28,717 28,038 
Total property, plant and equipment, net(1)
$18,962 18,766 
v3.22.0.1
Intangible Assets and Goodwill (Tables)
 12 Months Ended
Jan. 02, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets and Goodwill
At the end of fiscal years 2021 and 2020, the gross and net amounts of intangible assets were:
(Dollars in Millions)20212020
Intangible assets with definite lives:  
Patents and trademarks — gross$38,572 39,990 
Less accumulated amortization(20,088)(17,618)
Patents and trademarks — net$18,484 22,372 
Customer relationships and other intangibles — gross$23,011 22,898 
Less accumulated amortization(11,925)(10,912)
Customer relationships and other intangibles — net(1)
$11,086 11,986 
Intangible assets with indefinite lives:  
Trademarks$6,985 7,195 
Purchased in-process research and development(2)
9,837 11,849 
Total intangible assets with indefinite lives$16,822 19,044 
Total intangible assets — net$46,392 53,402 
(1)The majority is comprised of customer relationships
(2)In fiscal 2021, the Company recorded a partial IPR&D impairment charge of $0.9 billion primarily related to expected development delays in the general surgery digital robotics platform (Ottava) acquired with the Auris Health acquisition in 2019. The impairment charge was calculated based on revisions to the discounted cash flow valuation model reflecting a delay of first in human procedures of approximately two years from the initial acquisition model assumption of the second half of 2022. The remaining reduction was driven by assets that reached commercialization and are now classified as having definite lives.
Goodwill Goodwill as of January 2, 2022 and January 3, 2021, as allocated by segment of business, was as follows:
(Dollars in Millions)Consumer HealthPharmaceuticalMedical DevicesTotal
Goodwill at December 29, 2019$9,736 9,169 14,734 33,639 
Goodwill, related to acquisitions— 1,222 238 1,460 
Currency translation/other600 618 76 1,294 
Goodwill at January 3, 2021$10,336 11,009 15,048 36,393 
Goodwill, related to acquisitions— — — — 
Goodwill, related to divestitures(9)— — (9)
Currency translation/other(517)(429)(192)(1,138)
Goodwill at January 2, 2022$9,810 10,580 14,856 35,246 
Intangible Asset Amortization Expense The estimated amortization expense for approved products, before tax, for the five succeeding years is approximately:
(Dollars in Millions)
20222023202420252026
$4,6004,6004,4003,6003,000
v3.22.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Jan. 02, 2022
Fair Value Disclosures [Abstract]  
Summary of Derivative Activity
The following table is a summary of the activity related to derivatives and hedges for the fiscal years ended January 2, 2022 and January 3, 2021, net of tax:
January 2, 2022January 3, 2021
(Dollars in Millions)SalesCost of Products SoldR&D ExpenseInterest (Income) ExpenseOther (Income) ExpenseSalesCost of Products SoldR&D ExpenseInterest (Income) ExpenseOther (Income) Expense
The effects of fair value, net investment and cash flow hedging:
Gain (Loss) on fair value hedging relationship:
Interest rate swaps contracts:
 Hedged items$— — — (109)— — — — — — 
 Derivatives designated as hedging instruments— — — 109 — — — — — — 
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$— — — 174 — — — — 153 — 
   Amount of gain or (loss) recognized in AOCI— — — 174 — — — — 153 — 
Gain (Loss) on cash flow hedging relationship:
Forward foreign exchange contracts:
   Amount of gain or (loss) reclassified from AOCI into income17 119 30 — 47 12 (329)(137)— (16)
   Amount of gain or (loss) recognized in AOCI(94)(557)123 — 146 44 298 (91)— (52)
Cross currency interest rate swaps contracts:
   Amount of gain or (loss) reclassified from AOCI into income— — — 402 — — — — 370 — 
   Amount of gain or (loss) recognized in AOCI$— — — 9 — — — — 748 — 


As of January 2, 2022 and January 3, 2021, 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 LiabilityCumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability
(Dollars in Millions)January 2, 2022January 3, 2021January 2, 2022January 3, 2021
Long-term Debt$9,793 $— $(142)$— 
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 January 2, 2022 and January 3, 2021:
(Dollars in Millions)Location of Gain /(Loss) Recognized in Income on DerivativeGain/(Loss)
Recognized In
Income on Derivative
Derivatives Not Designated as Hedging InstrumentsJanuary 2, 2022January 3, 2021
Foreign Exchange ContractsOther (income) expense$(70)24 
Schedule of Effect of Net Investment Hedges The following table is the effect of net investment hedges for the fiscal years ended January 2, 2022 and January 3, 2021:
Gain/(Loss)
Recognized In
Accumulated OCI		Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Into IncomeGain/(Loss) Reclassified From
Accumulated OCI
Into Income
(Dollars in Millions)January 2, 2022January 3, 2021January 2, 2022January 3, 2021
Debt$387 (473)Interest (income) expense
— — 
Cross Currency interest rate swaps$548 65 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 January 2, 2022 and January 3, 2021:
January 3, 2021January 2, 2022
(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$1,481 198 205 1,884 1,884 
Equity Investments without readily determinable value$738 394 (632)500 500 

December 29, 2019January 3, 2021
(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$1,148 527 (194)1,481 1,481 
Equity Investments without readily determinable value$712 (55)81 738 738 

(1) Recorded in Other Income/Expense
(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 the fiscal year ended January 2, 2022 and January 3, 2021 were as follows:
20212020
(Dollars in Millions)Level 1Level 2Level 3Total
Total (1)
Derivatives designated as hedging instruments:     
Assets:     
Forward foreign exchange contracts $— 540 — 540 849 
Interest rate contracts (2)
— 796 — 796 240 
Total$— 1,336 — 1,336 1,089 
Liabilities:     
Forward foreign exchange contracts— 881 — 881 702 
Interest rate contracts (2)
— 979 — 979 1,569 
Total$— 1,860 — 1,860 2,271 
Derivatives not designated as hedging instruments:     
Assets:     
Forward foreign exchange contracts $— 24 — 24 49 
Liabilities:     
Forward foreign exchange contracts— 28 — 28 38 
Available For Sale Other Investments:
Equity investments(3)
1,884 — — 1,884 1,481 
Debt securities(4)
— 19,727 — 19,727 14,042 
Other Liabilities
Contingent Consideration(5)
$533 533 633 
Gross to Net Derivative Reconciliation20212020
(Dollars in Millions)
Total Gross Assets$1,360 1,138 
Credit Support Agreement (CSA)(1,285)(1,107)
Total Net Asset75 31 
Total Gross Liabilities1,888 2,309 
Credit Support Agreement (CSA)(1,855)(2,172)
Total Net Liabilities$33 137 

Summarized information about changes in liabilities for contingent consideration is as follows:
202120202019
(Dollars in Millions)
Beginning Balance$633 1,715 397 
Changes in estimated fair value (6)
(52)(1,089)151 
Additions— 106 1,246 
Payments(48)(99)(79)
Ending Balance$533 633 1,715 

(1)2020 assets and liabilities are all classified as Level 2 with the exception of equity investments of $1,481 million, which are classified as Level 1 and contingent consideration of $633 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 $520 million, $594 million and $1,631 million, classified as non-current other liabilities as of January 2, 2022, January 3, 2021 and December 29, 2019, respectively. Includes $13 million, $39 million and $84 million classified as current liabilities as of January 2, 2022, January 3, 2021 and December 29, 2019, respectively.
(6)Ongoing fair value adjustment amounts are recorded primarily in Research and Development expense. The Company recorded a contingent consideration reversal of $1,148 million in 2020 related to the timing of certain developmental milestones associated with the Auris Health acquisition. The reversal of the contingent consideration was recorded in Other income and expense.
v3.22.0.1
Borrowings (Tables)
 12 Months Ended
Jan. 02, 2022
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments The components of long-term debt are as follows:
(Dollars in Millions)2021
 
Effective Rate %
 
2020
 
Effective Rate %
3.55% Notes due 2021
$— — %$450 3.67 %
2.45% Notes due 2021
— — 350 2.48 
1.65% Notes due 2021
— — 999 1.65 
0.250% Notes due 2022 (1B Euro 1.1311)(2)/(1B Euro 1.2281)(3)

1,131 
(2)
0.26 1,227 
(3)
0.26 
2.25% Notes due 2022
1,000 2.31 999 2.31 
6.73% Debentures due 2023
250 
 
6.73 
 
250 
 
6.73 
3.375% Notes due 2023
802 3.18 803 3.17 
2.05% Notes due 2023
499 2.09 499 2.09 
0.650% Notes due 2024
(750MM Euro 1.1311)(2)/(750MM Euro 1.2281)(3)
847 
(2)
0.68 919 
(3)
0.68 
5.50% Notes due 2024
(500MM 1.3485 GBP )(2)/(500MM GBP 1.3654)(3)
672 
(2)
6.75 
 
679 
(3)
6.75 
2.625% Notes due 2025
749 2.63 748 2.63 
0.55% Notes due 2025
983 0.57 996 0.57 
2.45% Notes due 2026
1,995 2.47 1,994 2.47 
2.95% Notes due 2027
978 2.96 997 2.96 
0.95% Notes due 2027
1,478 0.96 1,494 0.96 
1.150% Notes due 2028 (750MM Euro 1.1311)(2)/(750MM Euro 1.2281)(3)
843 
(2)
1.21 915 
(3)
1.21 
2.90% Notes due 2028
1,495 2.91 1,495 2.91 
6.95% Notes due 2029
298 
 
7.14 
 
297 
 
7.14 
1.30% Notes due 2030
1,723 1.30 1,743 1.30 
4.95% Debentures due 2033
498 
 
4.95 
 
498 
 
4.95 
4.375% Notes due 2033
854 4.24 855 4.24 
1.650% Notes due 2035 (1.5B Euro 1.1311)(2)/(1.5B Euro 1.2281)(3)
1,683 
(2)
1.68 1,827 
(3)
1.68 
3.55% Notes due 2036
974 3.59 989 3.59 
5.95% Notes due 2037
993 
 
5.99 
 
992 
 
5.99 
3.625% Notes due 2037
1,475 3.64 1,488 3.64 
5.85% Debentures due 2038
696 
 
5.85 
 
696 
 
5.85 
3.400% Notes due 2038
992 3.42 991 3.42 
4.50% Debentures due 2040
540 
 
4.63 
 
539 
 
4.63 
2.10% Notes due 2040
974 2.14 986 2.14 
4.85% Notes due 2041
297 4.89 297 4.89 
4.50% Notes due 2043
496 4.52 496 4.52 
3.70% Notes due 2046
1,975 3.74 1,974 3.74 
3.75% Notes due 2047
971 3.76 991 3.76 
3.500% Notes due 2048
743 3.52 742 3.52 
2.250% Notes due 2050
983 2.29 984 2.29 
2.450% Notes due 2060
1,222 2.49 1,228 2.49 
Other7 
 
— 
 
7 
 
— 
Subtotal32,116 
(4)
2.89 %
(1)
34,434 
(4)
2.85 %
(1)
Less current portion2,131 
 
 
 
1,799 
 
 
Total long-term debt$29,985 
 
 
 
$32,635 
 
 
(1)Weighted average effective rate.
(2)Translation rate at January 2, 2022.
(3)Translation rate at January 3, 2021.
(4)The excess of the fair value over the carrying value of debt was $3.2 billion at the end of fiscal year 2021 and $5.4 billion at the end of fiscal year 2020.
Aggregate Maturities of Long Term Obligations
Aggregate maturities of long-term debt obligations commencing in 2022 are:
(Dollars in Millions)
20222023202420252026After 2026
$2,1311,5511,5181,7321,99523,189
v3.22.0.1
Income Taxes (Tables)
 12 Months Ended
Jan. 02, 2022
Income Tax Disclosure [Abstract]  
Provision for Income Taxes The provision for taxes on income consists of:
(Dollars in Millions)202120202019
Currently payable:
U.S. taxes$1,525 1,026 1,941 
International taxes2,452 1,898 2,744 
Total currently payable3,977 2,924 4,685 
Deferred:
U.S. taxes583 (76)(814)
International taxes(2,662)(1,065)(1,662)
Total deferred(2,079)(1,141)(2,476)
Provision for taxes on income$1,898 1,783 2,209 
Comparison of Income Taxes at Statutory Rate and Company's Effective Tax Rate
A comparison of income tax expense at the U.S. statutory rate of 21% in fiscal years 2021, 2020 and 2019, to the Company’s effective tax rate is as follows:
(Dollars in Millions)202120202019
U.S. $6,110 4,312 3,543 
International16,666 12,185 13,785 
Earnings before taxes on income:$22,776 16,497 17,328 
Tax rates:
U.S. statutory rate21.0 %21.0 21.0 
International operations (1)
(16.4)(9.9)(5.9)
U.S. taxes on international income (2)
6.7 2.7 1.8 
Tax benefits from loss on capital assets(1.3)(1.2)(0.3)
Tax benefits on share-based compensation(1.0)(1.5)(0.5)
TCJA and related impacts(0.5)0.7 (3.9)
(3)
All other(0.2)(1.0)0.5 
Effective Rate8.3 %10.8 12.7 

(1) For all periods presented the Company has subsidiaries operating in Puerto Rico under various tax incentives. International operations reflects the impacts of operations in jurisdictions with statutory tax rates different than the U.S., particularly Ireland, Switzerland and Puerto Rico, which is a favorable impact on the effective tax rate as compared with the U.S. statutory rate. The 2021 amounts include the reorganization of international subsidiaries; the 2020 and 2019 amounts include the impact of the new tax legislation enactment in Switzerland, both of which are further described below.
(2) Includes the impact of the GILTI tax, the Foreign-Derived Intangible Income deduction and other foreign income that is taxable under the U.S. tax code. The 2021 amounts include the reorganization of international subsidiaries; the 2020 and 2019 amounts include the impact of the new tax legislation enactment in Switzerland, both of which is further described below.
(3) Represents impact of adjustments to balances originally recorded as part of the 2017 TCJA provisional tax charge. Further information provided below.
Temporary Differences and Carryforwards
Temporary differences and carryforwards at the end of fiscal years 2021 and 2020 were as follows:
2021 Deferred Tax
2020 Deferred Tax(1)
(Dollars in Millions)AssetLiabilityAssetLiability
Employee related obligations$1,244 2,434 
Stock based compensation679 627 
Depreciation of property, plant and equipment(876)(823)
Goodwill and intangibles(2,659)
(2)
(5,023)
R&D capitalized for tax1,664 1,517 
Reserves & liabilities2,882 3,466 
Income reported for tax purposes2,566 1,777 
Net realizable operating loss carryforward1,073 990 
Undistributed foreign earnings1,015 (1,461)812 (1,435)
Global intangible low-taxed income(4,853)(3,606)
Miscellaneous international1,006 (39)854 (211)
Miscellaneous U.S. 495 (59)
Total deferred income taxes$12,624 (9,888)12,477 (11,157)
(1)Certain prior year amounts have been reclassified to conform to current year presentation
(2)Amount is inclusive of the $2.3 billion deferred tax asset established as part of the reorganized ownership structure of certain wholly-owned international subsidiaries, as previously described.
Summary of Activity Related to Unrecognized Tax Benefits The following table summarizes the activity related to unrecognized tax benefits:
(Dollars in Millions)202120202019
Beginning of year$3,373 3,853 3,326 
Increases related to current year tax positions242 265 249 
Increases related to prior period tax positions23 668 408 
Decreases related to prior period tax positions(128)(551)(105)
Settlements(187)(839)(9)
Lapse of statute of limitations0 (23)(16)
End of year$3,323 3,373 3,853 
v3.22.0.1
Employee Related Obligations (Tables)
 12 Months Ended
Jan. 02, 2022
Compensation Related Costs [Abstract]  
Employee Related Obligations At the end of fiscal 2021 and fiscal 2020, employee related obligations recorded on the Consolidated Balance Sheets were:
(Dollars in Millions)20212020
Pension benefits$4,088 5,761 
Postretirement benefits2,069 2,229 
Postemployment benefits3,117 3,078 
Deferred compensation181 250 
Total employee obligations9,455 11,318 
Less current benefits payable557 547 
Employee related obligations — non-current$8,898 10,771 
v3.22.0.1
Pensions and Other Benefit Plans (Tables)
 12 Months Ended
Jan. 02, 2022
Retirement Benefits [Abstract]  
Components of Net Periodic Benefit Cost Net periodic benefit costs for the Company’s defined benefit retirement plans and other benefit plans for 2021, 2020 and 2019 include the following components:
 Retirement PlansOther Benefit Plans
(Dollars in Millions)202120202019202120202019
Service cost$1,421 1,380 1,163 309 287 274 
Interest cost770 955 1,096 81 133 185 
Expected return on plan assets(2,645)(2,461)(2,322)(7)(7)(6)
Amortization of prior service cost (181)2 4 (31)(31)(31)
Recognized actuarial losses (gains)1,257 891 579 151 142 129 
Curtailments and settlements1 23 73 — — — 
Net periodic benefit cost$623 790 593 503 524 551 
Rates Used to Develop Actuarial Present Value of Projected Benefit Obligation The following table represents the weighted-average actuarial assumptions:
 Retirement PlansOther Benefit Plans
Worldwide Benefit Plans202120202019202120202019
Net Periodic Benefit Cost
Service cost discount rate2.14 %2.82 3.63 2.09 3.04 4.45 
Interest cost discount rate2.34 %3.13 4.13 2.33 3.08 4.25 
Rate of increase in compensation levels4.01 %4.00 3.99 4.25 4.25 4.29 
Expected long-term rate of return on plan assets7.71 %8.12 8.31 
Benefit Obligation
Discount rate2.49 %2.14 2.91 2.68 2.23 3.39 
Rate of increase in compensation levels4.01 %4.00 4.01 4.21 4.27 4.29 
Assumed Health Care Cost Trend Rates The following table displays the assumed healthcare cost trend rates, for all individuals:
Healthcare Plans20212020
Healthcare cost trend rate assumed for next year5.33 %5.68 %
Rate to which the cost trend rate is assumed to decline (ultimate trend)3.73 %4.49 %
Year the rate reaches the ultimate trend rate2046 2040 
Schedule of Net Funded Status The following table sets forth information related to the benefit obligation and the fair value of plan assets at fiscal year-end 2021 and 2020 for the Company’s defined benefit retirement plans and other post-retirement plans:
 Retirement PlansOther Benefit Plans
(Dollars in Millions)2021202020212020
Change in Benefit Obligation
Projected benefit obligation — beginning of year$43,300 37,188 5,028 5,076 
Service cost1,421 1,380 309 287 
Interest cost770 955 81 133 
Plan participant contributions67 61 — — 
Amendments(1)
5 (1,780)— — 
Actuarial (gains) losses(2)
(2,132)5,716 (188)(75)
Divestitures & acquisitions(2)(88)— — 
Curtailments, settlements & restructuring(7)(24)— — 
Benefits paid from plan(1,157)(1,111)(348)(396)
Effect of exchange rates(683)1,003 (4)3 
Projected benefit obligation — end of year$41,582 43,300 4,878 5,028 
Change in Plan Assets
Plan assets at fair value — beginning of year$38,195 32,201 90 115 
Actual return on plan assets4,439 5,524 17 14 
Company contributions969 870 343 357 
Plan participant contributions67 61 — — 
Settlements(7)(13)— — 
Divestitures & acquisitions(2)(84)— — 
Benefits paid from plan assets(1,157)(1,111)(348)(396)
Effect of exchange rates(574)747 — — 
Plan assets at fair value — end of year$41,930 38,195 102 90 
Funded status — end of year$348 (5,105)(4,776)(4,938)
Amounts Recognized in the Company’s Balance Sheet consist of the following:
Non-current assets$4,436 656 — — 
Current liabilities(115)(125)(438)(418)
Non-current liabilities(3,973)(5,636)(4,338)(4,520)
Total recognized in the consolidated balance sheet — end of year$348 (5,105)(4,776)(4,938)
Amounts Recognized in Accumulated Other Comprehensive Income consist of the following:
Net actuarial loss$5,539 10,860 1,113 1,463 
Prior service cost (credit)(1)
(1,610)(1,797)(13)(44)
Unrecognized net transition obligation— — — — 
Total before tax effects$3,929 9,063 1,100 1,419 
Accumulated Benefit Obligations — end of year$39,049 40,356 
(1)In January 2021, the Company announced that, effective on January 1, 2026, all eligible U.S. non-union employees, regardless of hire date, will earn benefits under the Retirement Value formula. This amendment does not affect the benefits accrued under the Final Average Pay formula for service before January 1, 2026.
(2)The actuarial gain for retirement plans in 2021 was primarily related to increases in discount rates; the actuarial losses for retirement plans in 2020 were primarily related to decreases in discount rates.
 Retirement PlansOther Benefit Plans
(Dollars in Millions)2021202020212020
Amounts Recognized in Net Periodic Benefit Cost and Other Comprehensive Income
Net periodic benefit cost$623 790 503 524 
Net actuarial (gain) loss(3,927)2,616 (199)(81)
Amortization of net actuarial loss(1,257)(891)(151)(142)
Prior service cost (credit)5 (1,780)— — 
Amortization of prior service (cost) credit181 (2)31 31 
Effect of exchange rates(136)293 — 1 
Total loss/(income) recognized in other comprehensive income, before tax$(5,134)236 (319)(191)
Total recognized in net periodic benefit cost and other comprehensive income$(4,511)1,026 184 333 
Information Related to the Benefit Obligation and the Fair Value of Plan Assets
The following table displays the funded status of the Company's U.S. Qualified & Non-Qualified pension plans and international funded and unfunded pension plans at December 31, 2021 and December 31, 2020, respectively:
U.S. PlansInternational Plans
Qualified PlansNon-Qualified PlansFunded PlansUnfunded Plans
(Dollars in Millions)20212020202120202021202020212020
Plan Assets$27,944 25,554 — — 13,986 12,641 — — 
Projected Benefit Obligation25,041 25,466 2,703 2,748 13,428 14,541 410 545 
Accumulated Benefit Obligation23,985 24,158 2,479 2,495 12,212 13,210 373 493 
Over (Under) Funded Status
Projected Benefit Obligation$2,903 88 (2,703)(2,748)558 (1,900)(410)(545)
Accumulated Benefit Obligation3,959 1,396 (2,479)(2,495)1,774 (569)(373)(493)
Projected Future Benefit Payments from Company's Retirement and Other Benefit Plans The following table displays the projected future benefit payments from the Company’s retirement and other benefit plans:
(Dollars in Millions)202220232024202520262027-2031
Projected future benefit payments
Retirement plans$1,317 1,386 1,421 1,496 1,572 9,279 
Other benefit plans $447 459 472 485 434 2,379 
Projected Future Minimum Contributions to the Company's U.S. and International Unfunded Retirement Plans The following table displays the projected future minimum contributions to the unfunded retirement plans. These amounts do not include any discretionary contributions that the Company may elect to make in the future.
(Dollars in Millions)202220232024202520262027-2031
Projected future contributions$114 119 126 133 139 794 
Company' Retirement Plan Asset Allocation and Target Allocations The Company’s retirement plan asset allocation at the end of 2021 and 2020 and target allocations for 2022 are as follows:
Percent of
Plan Assets		Target
Allocation
 202120202022
Worldwide Retirement Plans
Equity securities65 %66 %61 %
Debt securities35 34 39 
Total plan assets100 %100 %100 %
Schedule of Defined Benefit Plans Disclosures
The following table sets forth the Retirement Plans' investments measured at fair value as of December 31, 2021 and December 31, 2020:
Quoted Prices
in Active
Markets for
Identical Assets		Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs(1)
Investments Measured at Net Asset Value
 (Level 1)(Level 2)(Level 3)Total Assets
(Dollars in Millions)2021202020212020202120202021202020212020
Short-term investment funds$102 127 1,033 763 — — — — 1,135 890 
Government and agency securities— — 7,016 5,023 — — — — 7,016 5,023 
Debt instruments— — 3,505 3,931 — — — — 3,505 3,931 
Equity securities14,107 14,375 2 2 — — — — 14,109 14,377 
Commingled funds— — 5,496 4,690 105 160 8,708 8,236 14,309 13,086 
Other assets— — 34 11 15 21 1,807 856 1,856 888 
Investments at fair value$14,209 14,502 17,086 14,420 120 181 10,515 9,092 41,930 38,195 

(1) The activity for the Level 3 assets is not significant for all years presented.
v3.22.0.1
Capital and Treasury Stock (Tables)
 12 Months Ended
Jan. 02, 2022
Equity [Abstract]  
Changes in Treasury Stock Changes in treasury stock were:
Treasury Stock
(Amounts in Millions Except Treasury Stock Shares in Thousands)SharesAmount
Balance at December 30, 2018457,519 $34,362 
Employee compensation and stock option plans(20,053)(2,691)
Repurchase of common stock49,870 6,746 
Balance at December 29, 2019487,336 38,417 
Employee compensation and stock option plans(21,765)(3,148)
Repurchase of common stock21,760 3,221 
Balance at January 3, 2021487,331 38,490 
Employee compensation and stock option plans(17,399)(2,847)
Repurchase of common stock20,946 3,456 
Balance at January 2, 2022490,878 $39,099 
v3.22.0.1
Accumulated Other Comprehensive Income (Loss) (Tables)
 12 Months Ended
Jan. 02, 2022
Equity [Abstract]  
Components of Accumulated Other Comprehensive Income Components of other comprehensive income (loss) consist of the following:
(Dollars in Millions)Foreign
Currency Translation		Gain/(Loss) On SecuritiesEmployee Benefit PlansGain/
(Loss) On
Derivatives & Hedges		Total
Accumulated
Other
Comprehensive Income (Loss)
December 30, 2018$(8,869)— (6,158)(195)(15,222)
Net 2019 changes164 — (733)(100)(669)
December 29, 2019(8,705)— (6,891)(295)(15,891)
Net 2020 changes(233)1 (66)947 649 
January 3, 2021(8,938)1 (6,957)652 (15,242)
Net 2021 changes(1,079)(4)4,255 (988)2,184 
January 2, 2022$(10,017)(3)(2,702)(336)(13,058)
v3.22.0.1
Earnings Per Share (Tables)
 12 Months Ended
Jan. 02, 2022
Earnings Per Share [Abstract]  
Reconciliation of Basic Net Earnings per Share to Diluted Net Earnings per Share The following is a reconciliation of basic net earnings per share to diluted net earnings per share for the fiscal years ended January 2, 2022, January 3, 2021 and December 29, 2019:
(In Millions Except Per Share Amounts)202120202019
Basic net earnings per share$7.93 5.59 5.72 
Average shares outstanding — basic2,632.1 2,632.8 2,645.1 
Potential shares exercisable under stock option plans138.0 118.3 136.3 
Less: shares repurchased under treasury stock method(96.1)(80.4)(97.8)
Convertible debt shares— — 0.7 
Adjusted average shares outstanding — diluted2,674.0 2,670.7 2,684.3 
Diluted net earnings per share$7.81 5.51 5.63 
v3.22.0.1
Common Stock, Stock Option Plans and Stock Compensation Agreements (Tables)
 12 Months Ended
Jan. 02, 2022
Share-based Payment Arrangement [Abstract]  
Schedule Valuation Assumptions The average fair value of options granted was $20.86, $16.42 and $17.80, in fiscal years 2021, 2020 and 2019, respectively. The fair value was estimated based on the weighted average assumptions of:
202120202019
Risk-free rate0.83 %1.47 %2.56 %
Expected volatility18.59 %15.33 %16.27 %
Expected life (in years)7.07.07.0
Expected dividend yield2.50 %2.60 %2.80 %
Summary of Stock Option Activity A summary of option activity under the Plan as of January 2, 2022, January 3, 2021 and December 29, 2019, and changes during the years ending on those dates is presented below:
(Shares in Thousands)Outstanding SharesWeighted
Average Exercise Price		Aggregate
Intrinsic
Value
(Dollars in Millions)
Shares at December 30, 2018109,652 $98.29 $3,214 
Options granted19,745 131.94 
Options exercised(14,785)82.43 
Options canceled/forfeited(2,975)125.11 
Shares at December 29, 2019111,637 105.63 4,478 
Options granted20,723 151.41 
Options exercised(16,275)86.05 
Options canceled/forfeited(1,835)137.62 
Shares at January 3, 2021114,250 116.22 4,703 
Options granted18,525 164.62 
Options exercised(13,248)97.48 
Options canceled/forfeited(2,166)149.75 
Shares at January 2, 2022117,361 $125.36 $5,364 
Summary of Options Outstanding
The following table summarizes stock options outstanding and exercisable at January 2, 2022:
(Shares in Thousands)OutstandingExercisable
Exercise Price RangeOptions
Average Life(1)
Weighted Average Exercise PriceOptionsWeighted Average Exercise Price
$65.08-$90.44
16,007 1.6$81.9216,007 $81.92
$100.06-$101.87
22,647 3.6$101.0722,647 $101.07
$115.67-$129.51
24,543 5.6$122.5923,972 $122.43
$131.94-$151.41
36,304 7.6$142.23100 $140.72
$151.42-$164.62
17,860 9.1$164.6216 $164.62
 117,361 5.8$125.3662,742 $104.42
(1) Average contractual life remaining in years.
Summary of Restricted Share Units
A summary of the restricted share units and performance share units activity under the Plans as of January 2, 2022 is presented below:
(Shares in Thousands)Outstanding Restricted Share UnitsOutstanding Performance Share Units
Shares at January 3, 202114,998 2,236 
Granted4,981 741 
Issued(5,101)(610)
Canceled/forfeited/adjusted(756)(55)
Shares at January 2, 202214,122 2,312 
v3.22.0.1
Segments of Business and Geographic Areas (Tables)
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Segment Reporting [Abstract]    
Schedule of Sales by Segment of Business
 Sales to Customers % Change
(Dollars in Millions)202120202019’21 vs. ’20’20 vs. ’19
Consumer Health   
OTC
     U.S.$2,594 2,460 2,010 5.4 %22.4 
     International2,634 2,364 2,434 11.4 (2.9)
     Worldwide 5,227 4,824 4,444 8.4 8.5 
Skin Health/Beauty
     U.S.2,400 2,350 2,392 2.1 (1.7)
     International2,141 2,100 2,201 1.9 (4.6)
     Worldwide 4,541 4,450 4,593 2.0 (3.1)
Oral Care
     U.S.637 683 621 (6.7)9.9 
     International1,008 958 906 5.1 5.7 
     Worldwide 1,645 1,641 1,528 0.2 7.4 
Baby Care
     U.S.378 376 362 0.5 3.7 
     International1,188 1,141 1,313 4.1 (13.1)
     Worldwide 1,566 1,517 1,675 3.2 (9.4)
Women's Health
     U.S.13 13 12 (1.6)8.2 
     International905 888 974 1.8 (8.8)
     Worldwide 917 901 986 1.8 (8.6)
Wound Care/Other
     U.S.495 480 441 3.1 8.9 
     International243 240 230 1.7 4.1 
     Worldwide 739 720 671 2.6 7.2 
TOTAL CONSUMER HEALTH
     U.S.6,516 6,362 5,839 2.4 9.0 
     International8,119 7,691 8,059 5.6 (4.6)
     Worldwide 14,635 14,053 13,898 4.1 1.1 


PHARMACEUTICAL
Immunology
     U.S.10,843 10,175 9,641 6.6 5.5 
     International5,907 4,880 4,309 21.0 13.2 
     Worldwide 16,750 15,055 13,950 11.3 7.9 
     REMICADE®
     U.S.2,019 2,508 3,079 (19.5)(18.5)
     U.S. Exports236 346 294 (31.9)18.0 
     International935 893 1,007 4.8 (11.4)
     Worldwide 3,190 3,747 4,380 (14.9)(14.4)
     SIMPONI / SIMPONI ARIA®
     U.S.1,127 1,155 1,159 (2.4)(0.3)
     International1,148 1,088 1,029 5.5 5.8 
     Worldwide 2,276 2,243 2,188 1.4 2.6 
     STELARA®
     U.S.5,938 5,240 4,346 13.3 20.6 
     International3,196 2,467 2,015 29.6 22.4 
     Worldwide 9,134 7,707 6,361 18.5 21.1 
     TREMFYA®
     U.S.1,503 926 764 62.3 21.3 
     International624 421 248 48.2 69.9 
     Worldwide 2,127 1,347 1,012 57.9 33.2 
     OTHER IMMUNOLOGY
     U.S.21 — — **— 
     International3 11 10 (73.3)6.4 
     Worldwide 24 11 10 **6.4 
Infectious Diseases
     U.S.2,249 1,735 1,597 29.7 8.6 
     International3,612 1,839 1,815 96.3 1.3 
     Worldwide 5,861 3,574 3,413 64.0 4.7 
     COVID-19 VACCINE
U.S.634 — — ****
International1,751 — — ****
Worldwide2,385 — — ****
     EDURANT® / rilpivirine
     U.S.41 44 50 (7.6)(11.2)
     International953 920 812 3.6 13.3 
     Worldwide 994 964 861 3.1 11.9 
     PREZISTA® / PREZCOBIX® / REZOLSTA® / SYMTUZA®
     U.S.1,508 1,587 1,422 (4.9)11.6 
     International575 597 689 (3.6)(13.4)
     Worldwide 2,083 2,184 2,110 (4.6)3.5 
     OTHER INFECTIOUS DISEASES
     U.S.66 104 126 (36.0)(17.6)
     International333 323 315 3.0 2.6 
     Worldwide 399 427 441 (6.5)(3.2)
Neuroscience
     U.S.3,347 3,091 2,919 8.3 5.9 
     International3,664 3,457 3,409 6.0 1.4 
     Worldwide 7,011 6,548 6,328 7.1 3.5 
     CONCERTA® / methylphenidate
     U.S.172 183 233 (5.8)(21.4)
     International495 439 463 12.8 (5.1)
     Worldwide 667 622 696 7.3 (10.6)
       INVEGA SUSTENNA® / XEPLION® / INVEGA TRINZA® / TREVICTA®
     U.S.2,550 2,314 2,107 10.2 9.8 
     International1,472 1,339 1,224 10.0 9.4 
     Worldwide 4,022 3,653 3,330 10.1 9.7 
     RISPERDAL CONSTA®
     U.S.287 296 314 (2.9)(5.9)
     International305 346 374 (11.8)(7.5)
     Worldwide 592 642 688 (7.7)(6.8)
     OTHER NEUROSCIENCE
     U.S.338 298 266 13.3 12.4 
     International1,391 1,334 1,349 4.3 (1.1)
     Worldwide 1,729 1,632 1,614 6.0 1.1 
Oncology
     U.S.5,958 5,092 4,299 17.0 18.5 
     International8,590 7,275 6,393 18.1 13.8 
     Worldwide 14,548 12,367 10,692 17.6 15.7 
     DARZALEX®
     U.S.3,169 2,232 1,567 42.0 42.4 
     International2,854 1,958 1,430 45.8 36.9 
     Worldwide 6,023 4,190 2,998 43.8 39.8 
     ERLEADA®
     U.S.813 583 297 39.3 96.1
     International478 176 35  * ** *
     Worldwide1,291 760 332 70.0 * *
     IMBRUVICA®
     U.S.1,747 1,821 1,555 (4.0)17.1 
     International2,622 2,307 1,856 13.6 24.3 
     Worldwide 4,369 4,128 3,411 5.8 21.0 
     ZYTIGA® /abiraterone acetate
     U.S.119 373 810 (68.1)(54.0)
     International2,178 2,097 1,985 3.9 5.6 
     Worldwide 2,297 2,470 2,795 (7.0)(11.6)
     OTHER ONCOLOGY
     U.S.110 83 70 31.7 18.6 
     International458 738 1,087 (37.9)(32.1)
     Worldwide 568 821 1,158 (30.8)(29.1)
Pulmonary Hypertension
     U.S.2,365 2,133 1,684 10.9 26.6 
     International1,085 1,015 939 6.9 8.2 
     Worldwide 3,450 3,148 2,623 9.6 20.0 
     OPSUMIT®
     U.S.1,147 1,008 766 13.7 31.7 
     International672 631 562 6.6 12.3 
     Worldwide 1,819 1,639 1,327 11.0 23.5 
     UPTRAVI®
     U.S.1,056 955 714 10.5 33.8 
     International181 138 105 31.1 30.9 
     Worldwide 1,237 1,093 819 13.1 33.5 
     OTHER
     U.S.163 169 205 (3.7)(17.6)
     International232 247 272 (5.9)(9.2)
     Worldwide 395 416 476 (5.0)(12.8)
Cardiovascular / Metabolism / Other
     U.S.3,192 3,509 3,734 (9.0)(6.0)
     International1,268 1,369 1,458 (7.4)(6.1)
     Worldwide 4,460 4,878 5,192 (8.6)(6.0)
     XARELTO®
     U.S.2,438 2,345 2,313 4.0 1.4 
     International— — — — — 
     Worldwide 2,438 2,345 2,313 4.0 1.4 
     INVOKANA® / INVOKAMET®
     U.S.308 564 536 (45.4)5.2 
     International254 231 199 9.9 16.3 
     Worldwide 563 795 735 (29.3)8.2 
     PROCRIT® / EPREX®
     U.S.223 277 505 (19.7)(45.1)
     International256 274 285 (6.8)(3.8)
     Worldwide 479 552 790 (13.3)(30.2)
     OTHER
     U.S.223 323 380 (31.0)(15.1)
     International758 864 974 (12.2)(11.3)
     Worldwide 981 1,186 1,353 (17.3)(12.4)
TOTAL PHARMACEUTICAL
     U.S.27,954 25,735 23,874 8.6 7.8 
     International24,126 19,837 18,324 21.6 8.3 
     Worldwide 52,080 45,572 42,198 14.3 8.0 
MEDICAL DEVICES
Interventional Solutions
     U.S.1,836 1,452 1,443 26.4 0.6 
     International2,135 1,594 1,554 34.0 2.6 
     Worldwide 3,971 3,046 2,997 30.4 1.6 
Orthopaedics
     U.S.5,126 4,779 5,319 7.3 (10.2)
     International3,462 2,984 3,520 16.0 (15.2)
     Worldwide 8,588 7,763 8,839 10.6 (12.2)
     HIPS
     U.S.883 793 863 11.4 (8.2)
     International602 487 575 23.6 (15.3)
     Worldwide 1,485 1,280 1,438 16.0 (11.0)
     KNEES
     U.S.787 743 889 5.9 (16.4)
     International538 427 591 26.1 (27.8)
     Worldwide 1,325 1,170 1,480 13.3 (21.0)
     TRAUMA
     U.S.1,819 1,648 1,652 10.4 (0.2)
     International1,066 966 1,068 10.4 (9.6)
     Worldwide 2,885 2,614 2,720 10.4 (3.9)
     SPINE, SPORTS & OTHER
     U.S.1,637 1,595 1,915 2.6 (16.7)
     International1,256 1,104 1,286 13.8 (14.1)
     Worldwide 2,893 2,699 3,201 7.2 (15.7)
Surgery
     U.S.3,867 3,249 3,828 19.0 (15.1)
     International5,945 4,983 5,673 19.3 (12.2)
     Worldwide 9,812 8,232 9,501 19.2 (13.4)
     ADVANCED
     U.S.1,761 1,535 1,637 14.9 (6.2)
     International2,861 2,304 2,458 24.1 (6.2)
     Worldwide 4,622 3,839 4,095 20.4 (6.2)
     GENERAL
     U.S.2,105 1,714 2,192 22.7 (21.8)
     International3,085 2,679 3,215 15.2 (16.7)
     Worldwide 5,190 4,392 5,406 18.1 (18.8)
Vision
     U.S.1,857 1,557 1,794 19.3 (13.2)
     International2,831 2,362 2,830 19.8 (16.5)
     Worldwide 4,688 3,919 4,624 19.6 (15.2)
     CONTACT LENSES / OTHER
     U.S.1,398 1,213 1,304 15.2 (7.0)
     International2,043 1,781 2,088 14.7 (14.7)
     Worldwide 3,440 2,994 3,392 14.9 (11.7)
     SURGICAL
     U.S.459 344 490 33.5 (29.7)
     International788 581 742 35.7 (21.7)
     Worldwide 1,248 925 1,232 34.9 (24.9)
TOTAL MEDICAL DEVICES   
     U.S.12,686 11,036 12,384 14.9 (10.9)
     International14,374 11,923 13,579 20.6 (12.2)
     Worldwide 27,060 22,959 25,963 17.9 (11.6)
WORLDWIDE   
     U.S.47,156 43,133 42,097 9.3 2.5 
     International46,619 39,451 39,962 18.2 (1.3)
     Worldwide $93,775 82,584 82,059 13.6 %0.6 
*Certain prior year amounts have been reclassified to conform to current year presentation
**Percentage greater than 100% or not meaningful
  
Schedule of Segment Reporting Information
 Income (Loss) Before TaxIdentifiable Assets
(Dollars in Millions)
2021 (3)
2020 (4)
2019 (5)
20212020
Consumer Health$1,294 (1,064)2,061 $25,081 27,355 
Pharmaceutical18,181 15,462 8,816 64,376 66,158 
Medical Devices4,373 3,044 7,286 53,372 49,578 
Total23,848 17,442 18,163 142,829 143,091 
Less: Expense not allocated to segments (1)
1,072 945 835 
General corporate (2)
39,189 31,803 
Worldwide total$22,776 16,497 17,328 $182,018 174,894 

Additions to Property,
Plant & Equipment		Depreciation and
Amortization
(Dollars in Millions)202120202019202120202019
Consumer Health$331 248 328 $759 785 765 
Pharmaceutical1,198 863 950 4,029 4,006 3,910 
Medical Devices1,933 1,980 1,912 2,286 2,140 2,014 
Segments total3,462 3,091 3,190 7,074 6,931 6,689 
General corporate190 256 308 316 300 320 
Worldwide total$3,652 3,347 3,498 $7,390 7,231 7,009 
  
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas  
 Sales to Customers
Long-Lived Assets (6)
(Dollars in Millions)20212020201920212020
United States$47,156 43,133 42,097 $48,586 49,951 
Europe23,594 18,980 18,466 43,257 49,363 
Western Hemisphere excluding U.S. 5,750 5,335 5,941 2,708 2,734 
Asia-Pacific, Africa17,275 15,136 15,555 5,035 5,484 
Segments total93,775 82,584 82,059 99,586 107,532 
General corporate1,014 1,029 
Other non long-lived assets81,418 66,333 
Worldwide total$93,775 82,584 82,059 $182,018 174,894 
See Note 1 for a description of the segments in which the Company operates.
Export sales are not significant. In fiscal year 2021, the Company utilized three wholesalers distributing products for all three segments that represented approximately 14.0%, 11.0% and 11.0% of the total consolidated revenues. In fiscal year 2020, the Company had three wholesalers distributing products for all three segments that represented approximately 16.0%, 12.0% and 12.0% of the total consolidated revenues. In fiscal year 2019, the Company had three wholesalers distributing products for all three segments that represented approximately 15.0%, 12.0%, and 11.0% of the total consolidated revenues.
(1)Amounts not allocated to segments include interest (income) expense and general corporate (income) expense.
(2)General corporate includes cash, cash equivalents and marketable securities.
(3)Consumer Health includes:
•Litigation expense of $1.6 billion, primarily talc related reserves
•A restructuring related charge of $0.1 billion
Pharmaceutical includes:
•Litigation expense of $0.6 billion, primarily related to Risperdal
•Divestiture gains of $0.6 billion
•Gains on securities of $0.5 billion
•A restructuring related charge of $0.1 billion
Medical Devices includes:
•A restructuring related charge of $0.3 billion
•An in-process research and development expense of $0.9 billion
•A Medical Device Regulation charge of $0.2 billion
•Litigation expense of $0.1 billion

(4)    Consumer Health includes:
•Litigation expense of $3.9 billion, primarily talc related reserves and certain settlements.
Pharmaceutical includes:
•Litigation expense of $0.8 billion, primarily related to the agreement in principle to settle opioid litigation
•An unrealized gain on securities of $0.5 billion
•A restructuring related charge of $0.1 billion
Medical Devices includes:
•A contingent consideration reversal of $1.1 billion related to the timing of certain developmental milestones associated with the Auris Health acquisition.
•Litigation expense of $0.3 billion
•A restructuring related charge of $0.3 billion
•An in-process research and development expense of $0.2 billion
•A Medical Device Regulation charge of $0.1 billion
(5)     Consumer Health includes:
•A gain of $0.3 billion related to the Company's previously held equity investment in DR. CI:LABO
•Litigation expense of $0.4 billion
•A restructuring related charge of $0.1 billion
Pharmaceutical includes:
•Litigation expense of $4.3 billion of which $4.0 billion is related to the agreement in principle to settle opioid litigation
•An in-process research and development expense of $0.9 billion related to the Alios asset
•A research and development expense of $0.3 billion for an upfront payment related to argenx
•An unrealized gain on securities of $0.6 billion
•Actelion acquisition and integration related costs of $0.2 billion
•A restructuring charge of $0.1 billion
Medical Devices includes:
•A gain of $2.0 billion from the divestiture of the ASP business
•A restructuring related charge of $0.4 billion
•Litigation expense of $0.4 billion
•Auris Health acquisition and integration related costs of $0.1 billion
(6) Long-lived assets include property, plant and equipment, net for fiscal years 2021, and 2020 of $18,962 and $18,766, respectively, and intangible assets and goodwill, net for fiscal years 2021 and 2020 of $81,638 and $89,795, respectively.
v3.22.0.1
Restructuring (Tables)
 12 Months Ended
Jan. 02, 2022
Restructuring and Related Activities [Abstract]  
Summary of Severance Charges and Associated Spending
The following table summarizes the severance charges and the associated spending under these initiatives through the fiscal year ended 2021:
(Dollars in Millions)SeveranceAsset Write-offs/Sales
Other(2)
Total
Reserve balance, December 29, 2019
$164 — 16 180 
2020 activity(29)— (7)(36)
Reserve balance, January 3, 2021
135 — 9 144 
Current year activity:
   Charges — 53 420 473 
   Cash settlements(23)(404)(427)
   Settled non cash — (53)(53)
Reserve balance, January 2, 2022(1)
$112 — 25 137 
(1) Cash outlays for severance are expected to be substantially paid out over the next year in accordance with the Company's plans and local laws.
(2) Other includes project expense such as salaries for employees supporting these initiatives and consulting expenses.
v3.22.0.1
Summary of Significant Accounting Policies - Narrative (Details)
$ in Millions
 12 Months Ended
Jan. 02, 2022
USD ($)
Segment
Employee
Jan. 03, 2021
USD ($)
Dec. 29, 2019
USD ($)
Dec. 30, 2018
Dec. 31, 2017
Concentration of Credit Risk [Line Items]          
Number of employees | Employee 141,700        
Number of business segments | Segment 3        
Minimum reverse repurchase agreement collateral (as a percent) 102.00%        
Accrued Rebates Returns And Promotions $ 12,095 $ 11,513      
Sales return reserve (as a percent) 1.00% 1.00% 1.00%    
Percentage of profit share payments (less than) 3.00% 3.00% 3.00%    
Cost of products sold $ 29,855 $ 28,427 $ 27,556    
Shipping and handling costs as a percent of sales 0.50% 0.50% 0.50%    
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other assets, noncurrent Other assets, noncurrent      
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued Liabilities, Current Accrued Liabilities, Current      
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other Liabilities, Noncurrent Other Liabilities, Noncurrent      
Operating lease, right-of-use asset $ 900 $ 1,000      
Operating lease liabilities 1,000 1,100      
Operating lease costs 300 300 $ 300    
Cash paid for operating leases 300 300 300    
Advertising expense $ 2,700 $ 2,100 $ 2,200    
U.S. statutory rate 21.00% 21.00% 21.00% 21.00% 35.00%
TCJA, undistributed foreign earnings percent related to cash and cash equivalents       15.50%  
TCJA, undistributed foreign earnings percent related to earnings other than cash and cash equivalents       8.00%  
TCJA, provisional liability $ 6,900        
TJCA , provisional liability, non-current 6,100        
Repatriation of foreign earnings amount $ 700        
Minimum | Software Development          
Concentration of Credit Risk [Line Items]          
Estimated useful lives of the assets 3 years        
Maximum | Software Development          
Concentration of Credit Risk [Line Items]          
Estimated useful lives of the assets 8 years        
R&D Expense | Project Concentration Risk          
Concentration of Credit Risk [Line Items]          
Concentration risk, threshold percentage (as a percent) 0.05 0.05 0.05    
Shipping and Handling          
Concentration of Credit Risk [Line Items]          
Cost of products sold $ 1,100 $ 1,000 $ 1,000    
Pharmaceutical          
Concentration of Credit Risk [Line Items]          
Accrued Rebates Returns And Promotions $ 7,700 $ 7,200      
v3.22.0.1
Summary of Significant Accounting Policies - Estimated Useful Lives of Assets (Details)
 12 Months Ended
Jan. 02, 2022
Minimum | Building and building equipment  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of the assets 20 years
Minimum | Land and leasehold improvements  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of the assets 10 years
Minimum | Machinery and equipment  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of the assets 2 years
Maximum | Building and building equipment  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of the assets 30 years
Maximum | Land and leasehold improvements  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of the assets 20 years
Maximum | Machinery and equipment  
Property, Plant and Equipment [Line Items]  
Estimated useful lives of the assets 13 years
v3.22.0.1
Cash, Cash Equivalents and Current Marketable Securities - Cash and Cash Equivalent Composition (Details) - USD ($)
$ in Millions
Jan. 02, 2022
Jan. 03, 2021
Cash, Cash Equivalents, and Short-term Investments [Abstract]    
Fair value, available-for-sale $ 19,727 $ 14,042
Cash & Cash Equivalents 14,487 13,985
Current Marketable Securities 17,121 11,200
Held-to-maturity Securities    
Cash, Cash Equivalents, and Short-term Investments [Abstract]    
Carrying Amount, held-to-maturity 11,881 11,143
Fair value, held-to-maturity 11,880 11,143
Cash & Cash Equivalents 7,686 9,230
Current Marketable Securities 4,195 1,913
Held-to-maturity, unrecognized loss (1)  
Held-to-maturity, unrecognized gain   0
Held-to-maturity Securities | Cash    
Cash, Cash Equivalents, and Short-term Investments [Abstract]    
Carrying Amount, held-to-maturity 2,936 2,863
Fair value, held-to-maturity 2,936 2,863
Cash & Cash Equivalents 2,936 2,863
Current Marketable Securities 0 0
Held-to-maturity, unrecognized loss 0  
Held-to-maturity, unrecognized gain   0
Held-to-maturity Securities | Non-U.S. Sovereign Securities    
Cash, Cash Equivalents, and Short-term Investments [Abstract]    
Carrying Amount, held-to-maturity 1,006 690
Fair value, held-to-maturity 1,006 690
Cash & Cash Equivalents 90 0
Current Marketable Securities 916 690
Held-to-maturity, unrecognized loss 0  
Held-to-maturity, unrecognized gain   0
Held-to-maturity Securities | U.S. Reverse repurchase agreements    
Cash, Cash Equivalents, and Short-term Investments [Abstract]    
Carrying Amount, held-to-maturity 1,659 1,937
Fair value, held-to-maturity 1,659 1,937
Cash & Cash Equivalents 1,659 1,937
Current Marketable Securities 0 0
Held-to-maturity, unrecognized loss 0  
Held-to-maturity, unrecognized gain   0
Held-to-maturity Securities | Corporate debt securities    
Cash, Cash Equivalents, and Short-term Investments [Abstract]    
Carrying Amount, held-to-maturity 3,479 2,674
Fair value, held-to-maturity 3,478 2,674
Cash & Cash Equivalents 200 1,451
Current Marketable Securities 3,279 1,223
Held-to-maturity, unrecognized loss (1)  
Held-to-maturity, unrecognized gain   0
Held-to-maturity Securities | Money market funds    
Cash, Cash Equivalents, and Short-term Investments [Abstract]    
Carrying Amount, held-to-maturity 1,901 2,102
Fair value, held-to-maturity 1,901 2,102
Cash & Cash Equivalents 1,901 2,102
Current Marketable Securities 0 0
Held-to-maturity, unrecognized loss 0  
Held-to-maturity, unrecognized gain   0
Held-to-maturity Securities | Time deposits    
Cash, Cash Equivalents, and Short-term Investments [Abstract]    
Carrying Amount, held-to-maturity 900 877
Fair value, held-to-maturity 900 877
Cash & Cash Equivalents 900 877
Current Marketable Securities 0 0
Held-to-maturity, unrecognized loss 0  
Held-to-maturity, unrecognized gain   0
Available-for-sale Securities    
Cash, Cash Equivalents, and Short-term Investments [Abstract]    
Carrying Amount, available-for-sale 19,731 14,041
Fair value, available-for-sale 19,727 14,042
Cash & Cash Equivalents 6,801 4,755
Current Marketable Securities 12,926 9,287
Available-for-sale, unrecognized loss (4)  
Available-for-sale, unrecognized gain   1
Available-for-sale Securities | Corporate debt securities    
Cash, Cash Equivalents, and Short-term Investments [Abstract]    
Carrying Amount, available-for-sale 245 250
Fair value, available-for-sale 245 250
Cash & Cash Equivalents 15 24
Current Marketable Securities 230 226
Available-for-sale, unrecognized loss 0  
Available-for-sale, unrecognized gain   0
Available-for-sale Securities | U.S. Gov't Securities    
Cash, Cash Equivalents, and Short-term Investments [Abstract]    
Carrying Amount, available-for-sale 19,485 13,777
Fair value, available-for-sale 19,481 13,778
Cash & Cash Equivalents 6,785 4,731
Current Marketable Securities 12,696 9,047
Available-for-sale, unrecognized loss (4)  
Available-for-sale, unrecognized gain   1
Available-for-sale Securities | Other Sovereign Securities    
Cash, Cash Equivalents, and Short-term Investments [Abstract]    
Carrying Amount, available-for-sale 1 14
Fair value, available-for-sale 1 14
Cash & Cash Equivalents 1 0
Current Marketable Securities 0 14
Available-for-sale, unrecognized loss $ 0  
Available-for-sale, unrecognized gain   $ 0
v3.22.0.1
Cash, Cash Equivalents and Current Marketable Securities - Contractual Maturities of Available for Sale Securities (Details)
$ in Millions
Jan. 02, 2022
USD ($)
Cost Basis  
Due within one year $ 19,709
Due after one year through five years 22
Due after five years through ten years 0
Total debt securities 19,731
Fair Value  
Due within one year 19,705
Due after one year through five years 22
Due after five years through ten years 0
Total debt securities $ 19,727
v3.22.0.1
Inventories (Details) - USD ($)
$ in Millions
Jan. 02, 2022
Jan. 03, 2021
Summary of Inventories    
Raw materials and supplies $ 1,592 $ 1,410
Goods in process 2,287 2,040
Finished goods 6,508 5,894
Total inventories $ 10,387 $ 9,344
v3.22.0.1
Property, Plant and Equipment - Property, Plant and Equipment at Cost and Accumulated Depreciation (Details) - USD ($)
$ in Millions
Jan. 02, 2022
Jan. 03, 2021
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment, gross $ 47,679 $ 46,804
Less accumulated depreciation 28,717 28,038
Total property, plant and equipment, net 18,962 18,766
Land and leasehold improvements    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment, gross 884 882
Building and building equipment    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment, gross 12,882 12,502
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment, gross 29,774 29,104
Construction in progress    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment, gross $ 4,139 $ 4,316
v3.22.0.1
Property, Plant and Equipment - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Property, Plant and Equipment [Abstract]      
Interest expense capitalized $ 49 $ 63 $ 70
Depreciation expense, including the amortization of capitalized interest $ 2,700 $ 2,600 $ 2,500
v3.22.0.1
Intangible Assets and Goodwill - Schedule of Intangible Assets and Goodwill (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Oct. 03, 2021
Sep. 27, 2020
Jan. 02, 2022
Jan. 03, 2021
Intangible assets with indefinite lives:        
Indefinite lived intangible assets     $ 16,822 $ 19,044
Total intangible assets - net     46,392 53,402
Trademarks        
Intangible assets with indefinite lives:        
Indefinite lived intangible assets     6,985 7,195
Purchased in-process research and development        
Intangible assets with indefinite lives:        
Indefinite lived intangible assets     9,837 11,849
Patents And Trademarks        
Intangible assets with definite lives:        
Finite lived intangible assets gross     38,572 39,990
Less accumulated amortization     (20,088) (17,618)
Finite lived intangible assets net     18,484 22,372
Customer relationships and other intangible assets        
Intangible assets with definite lives:        
Finite lived intangible assets gross     23,011 22,898
Less accumulated amortization     (11,925) (10,912)
Finite lived intangible assets net     11,086 $ 11,986
In Process Research and Development        
Intangible assets with indefinite lives:        
Impairment of intangible assets, excluding goodwill $ 900 $ 100    
Auris Health | In Process Research and Development        
Intangible assets with indefinite lives:        
Impairment of intangible assets, excluding goodwill     $ 900  
v3.22.0.1
Intangible Assets and Goodwill - Goodwill (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Goodwill [Roll Forward]    
Goodwill beginning of period $ 36,393 $ 33,639
Goodwill, related to acquisitions 0 1,460
Goodwill, related to divestitures (9)  
Currency translation/other (1,138) 1,294
Goodwill end of period 35,246 36,393
Consumer Health    
Goodwill [Roll Forward]    
Goodwill beginning of period 10,336 9,736
Goodwill, related to acquisitions 0 0
Goodwill, related to divestitures (9)  
Currency translation/other (517) 600
Goodwill end of period 9,810 10,336
Pharmaceutical    
Goodwill [Roll Forward]    
Goodwill beginning of period 11,009 9,169
Goodwill, related to acquisitions 0 1,222
Goodwill, related to divestitures 0  
Currency translation/other (429) 618
Goodwill end of period 10,580 11,009
Medical Devices    
Goodwill [Roll Forward]    
Goodwill beginning of period 15,048 14,734
Goodwill, related to acquisitions 0 238
Goodwill, related to divestitures 0  
Currency translation/other (192) 76
Goodwill end of period $ 14,856 $ 15,048
v3.22.0.1
Intangible Assets and Goodwill - Narrative (Details) - USD ($)
$ in Billions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Finite-Lived Intangible Assets [Line Items]      
Amortization expense of amortizable intangible assets $ 4.7 $ 4.7 $ 4.5
Patents And Trademarks      
Finite-Lived Intangible Assets [Line Items]      
Intangible assets useful life 12 years    
Customer relationships and other intangible assets      
Finite-Lived Intangible Assets [Line Items]      
Intangible assets useful life 21 years    
v3.22.0.1
Intangible Assets and Goodwill - Estimated Amortization of Intangible Assets (Details)
$ in Millions
Jan. 02, 2022
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2022 $ 4,600
2023 4,600
2024 4,400
2025 3,600
2026 $ 3,000
v3.22.0.1
Fair Value Measurements - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Derivative [Line Items]    
Deferred net losses (gains) on derivatives included in accumulated other comprehensive income $ 336  
Description of reclassification of cash flow hedge gain (loss) next 12 months  
Maximum length of time for hedging transaction exposure 18 months  
Foreign exchange contracts    
Derivative [Line Items]    
Collateral paid $ 570  
Derivative, notional amount 45,800 $ 37,800
Cross currency interest rate swaps    
Derivative [Line Items]    
Derivative, notional amount 37,400 30,600
Interest Rate Swap    
Derivative [Line Items]    
Derivative, notional amount 10,000  
Equity securities | Equity Investments without readily determinable value    
Derivative [Line Items]    
Equity, fair value adjustment, impairment loss (28) (76)
Equity, fair value adjustment, change in observable prices $ 422 $ 21
v3.22.0.1
Fair Value Measurements - Summary of Derivative Activity (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) reclassified from AOCI into income $ 789 $ 53 $ (7)
Amount of gain or (loss) recognized in AOCI (199) 1,000 $ (107)
Sales | Interest Rate Swap | Fair Value Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing 0 0  
Amount of gain or (loss) recognized in AOCI 0 0  
Sales | Cross currency interest rate swaps contracts: | Fair Value Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing 0 0  
Amount of gain or (loss) recognized in AOCI 0 0  
Sales | Cross currency interest rate swaps contracts: | Cash Flow Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) reclassified from AOCI into income 0 0  
Amount of gain or (loss) recognized in AOCI 0 0  
Sales | Forward foreign exchange contracts: | Cash Flow Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) reclassified from AOCI into income 17 12  
Amount of gain or (loss) recognized in AOCI (94) 44  
Cost of Products Sold | Interest Rate Swap | Fair Value Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing 0 0  
Amount of gain or (loss) recognized in AOCI 0 0  
Cost of Products Sold | Cross currency interest rate swaps contracts: | Fair Value Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing 0 0  
Amount of gain or (loss) recognized in AOCI 0 0  
Cost of Products Sold | Cross currency interest rate swaps contracts: | Cash Flow Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) reclassified from AOCI into income 0 0  
Amount of gain or (loss) recognized in AOCI 0 0  
Cost of Products Sold | Forward foreign exchange contracts: | Cash Flow Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) reclassified from AOCI into income 119 (329)  
Amount of gain or (loss) recognized in AOCI (557) 298  
R&D Expense | Interest Rate Swap | Fair Value Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing 0 0  
Amount of gain or (loss) recognized in AOCI 0 0  
R&D Expense | Cross currency interest rate swaps contracts: | Fair Value Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing 0 0  
Amount of gain or (loss) recognized in AOCI 0 0  
R&D Expense | Cross currency interest rate swaps contracts: | Cash Flow Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) reclassified from AOCI into income 0 0  
Amount of gain or (loss) recognized in AOCI 0 0  
R&D Expense | Forward foreign exchange contracts: | Cash Flow Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) reclassified from AOCI into income 30 (137)  
Amount of gain or (loss) recognized in AOCI 123 (91)  
Interest (Income) Expense | Interest Rate Swap | Fair Value Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing (109) 0  
Amount of gain or (loss) recognized in AOCI 109 0  
Interest (Income) Expense | Cross currency interest rate swaps contracts: | Fair Value Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing 174 153  
Amount of gain or (loss) recognized in AOCI 174 153  
Interest (Income) Expense | Cross currency interest rate swaps contracts: | Cash Flow Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) reclassified from AOCI into income 402 370  
Amount of gain or (loss) recognized in AOCI 9 748  
Interest (Income) Expense | Forward foreign exchange contracts: | Cash Flow Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) reclassified from AOCI into income 0 0  
Amount of gain or (loss) recognized in AOCI 0 0  
Other (Income) Expense | Interest Rate Swap | Fair Value Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing 0 0  
Amount of gain or (loss) recognized in AOCI 0 0  
Other (Income) Expense | Cross currency interest rate swaps contracts: | Fair Value Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing 0 0  
Amount of gain or (loss) recognized in AOCI 0 0  
Other (Income) Expense | Cross currency interest rate swaps contracts: | Cash Flow Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) reclassified from AOCI into income 0 0  
Amount of gain or (loss) recognized in AOCI 0 0  
Other (Income) Expense | Forward foreign exchange contracts: | Cash Flow Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
Amount of gain or (loss) reclassified from AOCI into income 47 (16)  
Amount of gain or (loss) recognized in AOCI $ 146 $ (52)  
v3.22.0.1
Fair Value Measurements - Schedule of Derivatives Recorded in Consolidated Balance Sheets (Details) - USD ($)
$ in Millions
Jan. 02, 2022
Jan. 03, 2021
Derivative Instruments, Gain (Loss) [Line Items]    
Carrying Amount of the Hedged Liability $ 1,888 $ 2,309
Long-term Debt | Designated as Hedging Instrument    
Derivative Instruments, Gain (Loss) [Line Items]    
Carrying Amount of the Hedged Liability 9,793 0
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability $ (142) $ 0
v3.22.0.1
Fair Value Measurements - Schedule of Effect of Derivatives not Designated as Hedging Instruments (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Forward foreign exchange contracts: | Not Designated as Hedging Instrument | Other (Income) Expense    
Derivative Instruments, Gain (Loss) [Line Items]    
Gain/(Loss) Recognized In Income on Derivative $ (70) $ 24
v3.22.0.1
Fair Value Measurements - Schedule of Effect of Net Investment Hedges (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Jan. 02, 2022
Jan. 03, 2021
Derivative Instruments, Gain (Loss) [Line Items]        
Gain/(Loss) Recognized In Accumulated OCI     $ 387 $ (473)
Cross currency interest rate swaps contracts:        
Derivative Instruments, Gain (Loss) [Line Items]        
Gain/(Loss) Recognized In Accumulated OCI     $ 548 $ 65
Other (Income) Expense        
Derivative Instruments, Gain (Loss) [Line Items]        
Gain/(Loss) Reclassified From Accumulated OCI Into Income $ 0 $ 0    
Other (Income) Expense | Cross currency interest rate swaps contracts:        
Derivative Instruments, Gain (Loss) [Line Items]        
Gain/(Loss) Reclassified From Accumulated OCI Into Income $ 0 $ 0    
v3.22.0.1
Fair Value Measurements - Summary of Activity Related to Equity Investments (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Equity Investment [Roll Forward]      
Other assets, noncurrent $ 10,216 $ 6,562  
Equity securities | Equity Investments with readily determinable value      
Equity Investment [Roll Forward]      
Marketable securities, noncurrent 1,884 1,481 $ 1,148
Equity, fair value adjustment 198 527  
Equity investments, increase (decrease) from acquisition (sale) during period 205 (194)  
Other assets, noncurrent 1,884 1,481  
Equity securities | Equity Investments without readily determinable value      
Equity Investment [Roll Forward]      
Equity, fair value adjustment 394 (55)  
Equity investments, increase (decrease) from acquisition (sale) during period (632) 81  
Other assets, noncurrent 500 738  
Equity securities without readily determinable fair value, amount $ 500 $ 738 $ 712
v3.22.0.1
Fair Value Measurements - Financial Assets and Liabilities at Fair Value (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Apr. 01, 2019
Financial assets and liabilities at fair value        
Derivatives designated as hedging instruments : Assets $ 1,336      
Derivatives designated as hedging instruments : Liabilities 1,860      
Equity Investments 1,884 $ 1,481    
Debt securities 19,727 14,042    
Contingent consideration liability 533 633    
Total Gross Assets 1,360 1,138    
Credit Support Agreement (CSA) (1,285) (1,107)    
Total Net Asset 75 31    
Total Gross Liabilities 1,888 2,309    
Credit Support Agreement (CSA) (1,855) (2,172)    
Total Net Liabilities 33 137    
Beginning Balance 633 1,715 $ 397  
Changes in estimated fair value (52) (1,089) 151  
Additions 0 106 1,246  
Payments (48) (99) (79)  
Ending Balance 533 633 1,715  
Contingent consideration reversal 0 (1,148) 0  
Other Noncurrent Liabilities        
Financial assets and liabilities at fair value        
Contingent consideration liability 520 594 1,631  
Other Current Liabilities        
Financial assets and liabilities at fair value        
Contingent consideration liability 13 39 $ 84  
Auris Health        
Financial assets and liabilities at fair value        
Contingent consideration liability   1,100   $ 2,350
Contingent consideration reversal (1,148)      
Level 1        
Financial assets and liabilities at fair value        
Derivatives designated as hedging instruments : Assets 0      
Derivatives designated as hedging instruments : Liabilities 0      
Equity Investments 1,884 1,481    
Debt securities 0      
Level 2        
Financial assets and liabilities at fair value        
Derivatives designated as hedging instruments : Assets 1,336 1,089    
Derivatives designated as hedging instruments : Liabilities 1,860 2,271    
Equity Investments 0      
Debt securities 19,727      
Level 3        
Financial assets and liabilities at fair value        
Derivatives designated as hedging instruments : Assets 0      
Derivatives designated as hedging instruments : Liabilities 0      
Equity Investments 0      
Debt securities 0      
Contingent consideration liability 533 633    
Interest rate swaps contracts:        
Financial assets and liabilities at fair value        
Derivatives designated as hedging instruments : Assets 796      
Derivatives designated as hedging instruments : Liabilities 979      
Interest rate swaps contracts: | Level 1        
Financial assets and liabilities at fair value        
Derivatives designated as hedging instruments : Assets 0      
Derivatives designated as hedging instruments : Liabilities 0      
Interest rate swaps contracts: | Level 2        
Financial assets and liabilities at fair value        
Derivatives designated as hedging instruments : Assets 796 240    
Derivatives designated as hedging instruments : Liabilities 979 1,569    
Interest rate swaps contracts: | Level 3        
Financial assets and liabilities at fair value        
Derivatives designated as hedging instruments : Assets 0      
Derivatives designated as hedging instruments : Liabilities 0      
Foreign exchange contracts        
Financial assets and liabilities at fair value        
Derivatives designated as hedging instruments : Assets 540      
Derivatives designated as hedging instruments : Liabilities 881      
Derivatives not designated as hedging instruments : Assets 24      
Derivatives not designated as hedging instruments : Liabilities 28      
Foreign exchange contracts | Level 1        
Financial assets and liabilities at fair value        
Derivatives designated as hedging instruments : Assets 0      
Derivatives designated as hedging instruments : Liabilities 0      
Derivatives not designated as hedging instruments : Assets 0      
Derivatives not designated as hedging instruments : Liabilities 0      
Foreign exchange contracts | Level 2        
Financial assets and liabilities at fair value        
Derivatives designated as hedging instruments : Assets 540 849    
Derivatives designated as hedging instruments : Liabilities 881 702    
Derivatives not designated as hedging instruments : Assets 24 49    
Derivatives not designated as hedging instruments : Liabilities 28 $ 38    
Foreign exchange contracts | Level 3        
Financial assets and liabilities at fair value        
Derivatives designated as hedging instruments : Assets 0      
Derivatives designated as hedging instruments : Liabilities 0      
Derivatives not designated as hedging instruments : Assets 0      
Derivatives not designated as hedging instruments : Liabilities $ 0      
v3.22.0.1
Borrowings - Schedule of Long-term Debt Instruments (Details)
€ in Millions, £ in Millions, $ in Millions
 12 Months Ended
Jan. 02, 2022
USD ($)
Jan. 03, 2021
USD ($)
Jan. 02, 2022
EUR (€)
Jan. 02, 2022
GBP (£)
Jan. 03, 2021
EUR (€)
Jan. 03, 2021
GBP (£)
Debt Instrument [Line Items]            
Effective interest rate 2.89% 2.85% 2.89% 2.89% 2.85% 2.85%
Long-term debt $ 32,116 $ 34,434        
Less current portion 2,131 1,799        
Total long-term debt 29,985 32,635        
Excess of fair value over carrying value of debt $ 3,200 $ 5,400        
3.55% Notes due 2021            
Debt Instrument [Line Items]            
Effective interest rate 0.00% 3.67% 0.00% 0.00% 3.67% 3.67%
Long-term debt $ 0 $ 450        
Stated interest rate (as a percent) 3.55%   3.55% 3.55%    
2.45% Notes due 2021            
Debt Instrument [Line Items]            
Effective interest rate 0.00% 2.48% 0.00% 0.00% 2.48% 2.48%
Long-term debt $ 0 $ 350        
Stated interest rate (as a percent) 2.45%   2.45% 2.45%    
1.65% Notes due 2021            
Debt Instrument [Line Items]            
Effective interest rate 0.00% 1.65% 0.00% 0.00% 1.65% 1.65%
Long-term debt $ 0 $ 999        
Stated interest rate (as a percent) 1.65%   1.65% 1.65%    
0.250% Notes due 2022 (1B Euro 1.1311)(2)/(1B Euro 1.2281)(3)            
Debt Instrument [Line Items]            
Effective interest rate 0.26% 0.26% 0.26% 0.26% 0.26% 0.26%
Long-term debt $ 1,131 $ 1,227        
Stated interest rate (as a percent) 0.25%   0.25% 0.25%    
Debt Instrument, Face Amount | €     € 1,000   € 1,000  
Foreign currency exchange rate, translation 1.1311 1.2281 1.1311 1.1311 1.2281 1.2281
2.25% Notes due 2022            
Debt Instrument [Line Items]            
Effective interest rate 2.31% 2.31% 2.31% 2.31% 2.31% 2.31%
Long-term debt $ 1,000 $ 999        
Stated interest rate (as a percent) 2.25%   2.25% 2.25%    
6.73% Debentures due 2023            
Debt Instrument [Line Items]            
Effective interest rate 6.73% 6.73% 6.73% 6.73% 6.73% 6.73%
Long-term debt $ 250 $ 250        
Stated interest rate (as a percent) 6.73%   6.73% 6.73%    
3.375% Notes due 2023            
Debt Instrument [Line Items]            
Effective interest rate 3.18% 3.17% 3.18% 3.18% 3.17% 3.17%
Long-term debt $ 802 $ 803        
Stated interest rate (as a percent) 3.375%   3.375% 3.375%    
2.05% Notes due 2023            
Debt Instrument [Line Items]            
Effective interest rate 2.09% 2.09% 2.09% 2.09% 2.09% 2.09%
Long-term debt $ 499 $ 499        
Stated interest rate (as a percent) 2.05%   2.05% 2.05%    
0.650% Notes due 2024 (750MM Euro 1.1311)(2)/(750MM Euro 1.2281)(3)            
Debt Instrument [Line Items]            
Effective interest rate 0.68% 0.68% 0.68% 0.68% 0.68% 0.68%
Long-term debt $ 847 $ 919        
Stated interest rate (as a percent) 0.65%   0.65% 0.65%    
Debt Instrument, Face Amount | €     € 750   € 750  
Foreign currency exchange rate, translation 1.1311 1.2281 1.1311 1.1311 1.2281 1.2281
5.50% Notes due 2024 (500MM 1.3485 GBP )(2)/(500MM GBP 1.3654)(3)            
Debt Instrument [Line Items]            
Effective interest rate 6.75% 6.75% 6.75% 6.75% 6.75% 6.75%
Long-term debt $ 672 $ 679        
Stated interest rate (as a percent) 5.50%   5.50% 5.50%    
Debt Instrument, Face Amount | £       £ 500   £ 500
Foreign currency exchange rate, translation 1.3485 1.3654 1.3485 1.3485 1.3654 1.3654
2.625% Notes due 2025            
Debt Instrument [Line Items]            
Effective interest rate 2.63% 2.63% 2.63% 2.63% 2.63% 2.63%
Long-term debt $ 749 $ 748        
Stated interest rate (as a percent) 2.625%   2.625% 2.625%    
0.55% Notes due 2025            
Debt Instrument [Line Items]            
Effective interest rate 0.57% 0.57% 0.57% 0.57% 0.57% 0.57%
Long-term debt $ 983 $ 996        
Stated interest rate (as a percent) 0.55%   0.55% 0.55%    
2.45% Notes due 2026            
Debt Instrument [Line Items]            
Effective interest rate 2.47% 2.47% 2.47% 2.47% 2.47% 2.47%
Long-term debt $ 1,995 $ 1,994        
Stated interest rate (as a percent) 2.45%   2.45% 2.45%    
2.95% Notes due 2027            
Debt Instrument [Line Items]            
Effective interest rate 2.96% 2.96% 2.96% 2.96% 2.96% 2.96%
Long-term debt $ 978 $ 997        
Stated interest rate (as a percent) 2.95%   2.95% 2.95%    
0.95% Notes due 2027            
Debt Instrument [Line Items]            
Effective interest rate 0.96% 0.96% 0.96% 0.96% 0.96% 0.96%
Long-term debt $ 1,478 $ 1,494        
Stated interest rate (as a percent) 0.95%   0.95% 0.95%    
1.150% Notes due 2028 (750MM Euro 1.1311)(2)/(750MM Euro 1.2281)(3)            
Debt Instrument [Line Items]            
Effective interest rate 1.21% 1.21% 1.21% 1.21% 1.21% 1.21%
Long-term debt $ 843 $ 915        
Stated interest rate (as a percent) 1.15%   1.15% 1.15%    
Debt Instrument, Face Amount | €     € 750   € 750  
Foreign currency exchange rate, translation 1.1311 1.2281 1.1311 1.1311 1.2281 1.2281
2.90% Notes due 2028            
Debt Instrument [Line Items]            
Effective interest rate 2.91% 2.91% 2.91% 2.91% 2.91% 2.91%
Long-term debt $ 1,495 $ 1,495        
Stated interest rate (as a percent) 2.90%   2.90% 2.90%    
6.95% Notes due 2029            
Debt Instrument [Line Items]            
Effective interest rate 7.14% 7.14% 7.14% 7.14% 7.14% 7.14%
Long-term debt $ 298 $ 297        
Stated interest rate (as a percent) 6.95%   6.95% 6.95%    
1.30% Notes due 2030            
Debt Instrument [Line Items]            
Effective interest rate 1.30% 1.30% 1.30% 1.30% 1.30% 1.30%
Long-term debt $ 1,723 $ 1,743        
Stated interest rate (as a percent) 1.30%   1.30% 1.30%    
4.95% Debentures due 2033            
Debt Instrument [Line Items]            
Effective interest rate 4.95% 4.95% 4.95% 4.95% 4.95% 4.95%
Long-term debt $ 498 $ 498        
Stated interest rate (as a percent) 4.95%   4.95% 4.95%    
4.375% Notes due 2033            
Debt Instrument [Line Items]            
Effective interest rate 4.24% 4.24% 4.24% 4.24% 4.24% 4.24%
Long-term debt $ 854 $ 855        
Stated interest rate (as a percent) 4.375%   4.375% 4.375%    
1.650% Notes due 2035 (1.5B Euro 1.1311)(2)/(1.5B Euro 1.2281)(3)            
Debt Instrument [Line Items]            
Effective interest rate 1.68% 1.68% 1.68% 1.68% 1.68% 1.68%
Long-term debt $ 1,683 $ 1,827        
Stated interest rate (as a percent) 1.65%   1.65% 1.65%    
Debt Instrument, Face Amount | €     € 1,500   € 1,500  
Foreign currency exchange rate, translation 1.1311 1.2281 1.1311 1.1311 1.2281 1.2281
3.55% Notes due 2036            
Debt Instrument [Line Items]            
Effective interest rate 3.59% 3.59% 3.59% 3.59% 3.59% 3.59%
Long-term debt $ 974 $ 989        
Stated interest rate (as a percent) 3.55%   3.55% 3.55%    
5.95% Notes due 2037            
Debt Instrument [Line Items]            
Effective interest rate 5.99% 5.99% 5.99% 5.99% 5.99% 5.99%
Long-term debt $ 993 $ 992        
Stated interest rate (as a percent) 5.95%   5.95% 5.95%    
3.625% Notes due 2037            
Debt Instrument [Line Items]            
Effective interest rate 3.64% 3.64% 3.64% 3.64% 3.64% 3.64%
Long-term debt $ 1,475 $ 1,488        
Stated interest rate (as a percent) 3.625%   3.625% 3.625%    
5.85% Debentures due 2038            
Debt Instrument [Line Items]            
Effective interest rate 5.85% 5.85% 5.85% 5.85% 5.85% 5.85%
Long-term debt $ 696 $ 696        
Stated interest rate (as a percent) 5.85%   5.85% 5.85%    
3.400% Notes due 2038            
Debt Instrument [Line Items]            
Effective interest rate 3.42% 3.42% 3.42% 3.42% 3.42% 3.42%
Long-term debt $ 992 $ 991        
Stated interest rate (as a percent) 3.40%   3.40% 3.40%    
4.50% Debentures due 2040            
Debt Instrument [Line Items]            
Effective interest rate 4.63% 4.63% 4.63% 4.63% 4.63% 4.63%
Long-term debt $ 540 $ 539        
Stated interest rate (as a percent) 4.50%   4.50% 4.50%    
2.10% Notes due 2040            
Debt Instrument [Line Items]            
Effective interest rate 2.14% 2.14% 2.14% 2.14% 2.14% 2.14%
Long-term debt $ 974 $ 986        
Stated interest rate (as a percent) 2.10%   2.10% 2.10%    
4.85% Notes due 2041            
Debt Instrument [Line Items]            
Effective interest rate 4.89% 4.89% 4.89% 4.89% 4.89% 4.89%
Long-term debt $ 297 $ 297        
Stated interest rate (as a percent) 4.85%   4.85% 4.85%    
4.50% Notes due 2043            
Debt Instrument [Line Items]            
Effective interest rate 4.52% 4.52% 4.52% 4.52% 4.52% 4.52%
Long-term debt $ 496 $ 496        
Stated interest rate (as a percent) 4.50%   4.50% 4.50%    
3.70% Notes due 2046            
Debt Instrument [Line Items]            
Effective interest rate 3.74% 3.74% 3.74% 3.74% 3.74% 3.74%
Long-term debt $ 1,975 $ 1,974        
Stated interest rate (as a percent) 3.70%   3.70% 3.70%    
3.75% Notes due 2047            
Debt Instrument [Line Items]            
Effective interest rate 3.76% 3.76% 3.76% 3.76% 3.76% 3.76%
Long-term debt $ 971 $ 991        
Stated interest rate (as a percent) 3.75%   3.75% 3.75%    
3.500% Notes due 2048            
Debt Instrument [Line Items]            
Effective interest rate 3.52% 3.52% 3.52% 3.52% 3.52% 3.52%
Long-term debt $ 743 $ 742        
Stated interest rate (as a percent) 3.50%   3.50% 3.50%    
2.250% Notes due 2050            
Debt Instrument [Line Items]            
Effective interest rate 2.29% 2.29% 2.29% 2.29% 2.29% 2.29%
Long-term debt $ 983 $ 984        
Stated interest rate (as a percent) 2.25%   2.25% 2.25%    
2.450% Notes due 2060            
Debt Instrument [Line Items]            
Effective interest rate 2.49% 2.49% 2.49% 2.49% 2.49% 2.49%
Long-term debt $ 1,222 $ 1,228        
Stated interest rate (as a percent) 2.45%   2.45% 2.45%    
Other            
Debt Instrument [Line Items]            
Effective interest rate 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Long-term debt $ 7 $ 7        
v3.22.0.1
Borrowings - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Sep. 30, 2021
Jan. 03, 2021
Debt Disclosure [Abstract]      
Borrowing capacity under credit facility   $ 10,000  
Short-term borrowings and the current portion of long-term debt $ 3,800   $ 2,600
Borrowed under the commercial paper program 2,100   1,800
Current portion of long term debt 2,131   1,799
Short-term Debt [Line Items]      
Loans and notes payable $ 3,766   $ 2,631
Commercial Paper      
Debt Disclosure [Abstract]      
Debt, weighted average interest rate 0.11%    
Debt instrument, term 3 months    
Short-term Debt [Line Items]      
Loans and notes payable $ 1,600    
Debt, weighted average interest rate 0.11%    
Debt instrument, term 3 months    
v3.22.0.1
Borrowings - Aggregate Maturities of Long Term Obligations (Details)
$ in Millions
Jan. 02, 2022
USD ($)
Aggregate maturities of long-term obligations  
2022 $ 2,131
2023 1,551
2024 1,518
2025 1,732
2026 1,995
After 2026 $ 23,189
v3.22.0.1
Income Taxes - Provision for Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Currently payable:      
U.S. taxes $ 1,525 $ 1,026 $ 1,941
International taxes 2,452 1,898 2,744
Total currently payable 3,977 2,924 4,685
Deferred:      
U.S. taxes 583 (76) (814)
International taxes (2,662) (1,065) (1,662)
Total deferred (2,079) (1,141) (2,476)
Provision for taxes on income $ 1,898 $ 1,783 $ 2,209
v3.22.0.1
Income Taxes - Comparison of Income Taxes at Statutory Rate and Company's Effective Tax Rate (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Jan. 02, 2022
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Comparison Of Income Tax Expense At Statutory Rate And Company's Tax Rate Abstract            
U.S.    $ 6,110 $ 4,312 $ 3,543    
International   16,666 12,185 13,785    
Earnings before provision for taxes on income   $ 22,776 $ 16,497 $ 17,328    
Tax rates:            
U.S. statutory rate   21.00% 21.00% 21.00% 21.00% 35.00%
International operations   (16.40%) (9.90%) (5.90%)    
U.S. taxes on international income   6.70% 2.70% 1.80%    
Tax benefits from loss on capital assets (1.30%) (1.30%) (1.20%) (0.30%)    
Tax benefits on share-based compensation   (1.00%) (1.50%) (0.50%)    
TCJA and related impacts   (0.50%) 0.70% (3.90%)    
All other   (0.20%) (1.00%) 0.50%    
Effective Rate   8.30% 10.80% 12.70%    
v3.22.0.1
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Dec. 29, 2019
Jan. 02, 2022
Dec. 29, 2019
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Oct. 31, 2020
Oct. 31, 2019
Dec. 30, 2018
Tax Credit Carryforward [Line Items]                  
Effective tax rate reconciliation, net increase (decrease) in tax rate, percent       (2.50%) 1.90%        
Deferred tax assets, tax basis increase of certain assets due to reorganization   $ 2,300   $ 2,300          
Increase (decrease) in deferred tax liabilities, global intangible low-taxed income (GILTI)       $ 1,700          
Tax benefits from loss on capital assets   1.30%   1.30% 1.20% 0.30%      
Income tax expense recorded related to TRAF         $ 400 $ 100      
TRAF effect on tax rate         2.60% 0.60%      
Income tax expense related to change in tax rate from TRAF         $ 300 $ 600      
Deferred tax asset recorded related to TRAF         450 900      
Deferred tax expense related to TRAF         $ 300 450      
Effective income tax rate reconciliation, deduction         1.20%        
Effective tax rate reconciliation, litigation settlement, percent     (2.10%)            
Reversal of deferred tax liability           600      
Reversal of deferred tax asset           200      
Tax Cuts And Jobs Act Of 2017, foreign tax credits, net deferred tax expense (benefit)           $ (400)      
TJCA, foreign tax credit percent 1.70%         (2.20%)      
Increase (decrease) in earnings before taxes, percent     (23.50%)            
TCJA, increase (decrease) in deferred tax asset $ 300                
Increase (decrease) in unrecognized tax benefits           $ 300      
Effective tax rate reconciliation, unrecognized tax benefits, percent           1.50%      
Unrecognized tax benefits $ 3,853 $ 3,323 $ 3,853 $ 3,323 $ 3,373 $ 3,853     $ 3,326
Unrecognized tax benefits, interest on income tax expense       44 32 50      
Unrecognized tax benefits, interest on income taxes accrued   512   $ 512 468        
State and Local Jurisdiction                  
Tax Credit Carryforward [Line Items]                  
Effective tax rate reconciliation, net increase (decrease) in tax rate, percent       2.70%          
Deferred tax assets, net   600   $ 600          
Auris Health | Purchased in-process research and development(1)                  
Tax Credit Carryforward [Line Items]                  
Impairment of intangible assets, excluding goodwill   $ 900              
Effective income tax rate reconciliation, nondeductible expense, impairment losses, percent   22.40%              
Internal Revenue Service (IRS)                  
Tax Credit Carryforward [Line Items]                  
Payment on unrecognized tax benefit liability         700        
Pending Litigation                  
Tax Credit Carryforward [Line Items]                  
Loss contingency, estimate of possible loss             $ 5,000 $ 4,000  
Consumer Health                  
Tax Credit Carryforward [Line Items]                  
Litigation expense       1,600 3,900 400      
Pharmaceutical                  
Tax Credit Carryforward [Line Items]                  
Litigation expense       600 $ 800 $ 4,300      
Talc                  
Tax Credit Carryforward [Line Items]                  
Effective income tax rate reconciliation, litigation settlement, percent         0.235        
Talc | Consumer Health                  
Tax Credit Carryforward [Line Items]                  
Litigation expense       $ 1,600 $ 4,000        
Effective income tax rate reconciliation, litigation settlement, percent       0.235          
Risperdal | Consumer Health                  
Tax Credit Carryforward [Line Items]                  
Litigation expense       $ 800          
Effective income tax rate reconciliation, litigation settlement, percent       0.164          
Opiods                  
Tax Credit Carryforward [Line Items]                  
Effective income tax rate reconciliation, litigation settlement, percent         0.214        
Opiods | Pharmaceutical                  
Tax Credit Carryforward [Line Items]                  
Litigation expense         $ 1,000        
v3.22.0.1
Income Taxes - Temporary Differences and Carryforwards (Details) - USD ($)
$ in Millions
Jan. 02, 2022
Jan. 03, 2021
Asset    
Employee related obligations $ 1,244 $ 2,434
Stock based compensation 679 627
R&D capitalized for tax 1,664 1,517
Reserves & liabilities 2,882 3,466
Income reported for tax purposes 2,566 1,777
Net realizable operating loss carryforward 1,073 990
Undistributed foreign earnings 1,015 812
Miscellaneous international 1,006 854
Miscellaneous U.S.  495  
Total deferred income taxes 12,624 12,477
Liability    
Depreciation of property, plant and equipment (876) (823)
Goodwill and intangibles (2,659) (5,023)
Undistributed foreign earnings (1,461) (1,435)
Global intangible low-taxed income (4,853) (3,606)
Miscellaneous international (39) (211)
Miscellaneous U.S.    (59)
Total deferred income taxes (9,888) $ (11,157)
Deferred tax assets, tax basis increase of certain assets due to reorganization $ 2,300  
v3.22.0.1
Income Taxes - Summary of Activity Related to Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Summary of unrecognized tax benefits      
Beginning of year $ 3,373 $ 3,853 $ 3,326
Increases related to current year tax positions 242 265 249
Increases related to prior period tax positions 23 668 408
Decreases related to prior period tax positions (128) (551) (105)
Settlements (187) (839) (9)
Lapse of statute of limitations 0 (23) (16)
End of year $ 3,323 $ 3,373 $ 3,853
v3.22.0.1
Employee Related Obligations - Employee Related Obligations (Details) - USD ($)
$ in Millions
Jan. 02, 2022
Jan. 03, 2021
Employee-related Liabilities [Abstract]    
Pension benefits $ 4,088 $ 5,761
Postretirement benefits 2,069 2,229
Postemployment benefits 3,117 3,078
Deferred compensation 181 250
Total employee obligations 9,455 11,318
Less current benefits payable 557 547
Employee related obligations — non-current $ 8,898 $ 10,771
v3.22.0.1
Employee Related Obligations - Narrative (Details) - USD ($)
$ in Millions
Jan. 02, 2022
Jan. 03, 2021
Compensation Related Costs [Abstract]    
Prepaid employee related obligations $ 4,436 $ 656
v3.22.0.1
Pensions and Other Benefit Plans - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Defined Benefit Plan Disclosure [Line Items]      
Amendments $ (1,800)    
Percentage of corridor of greater of market value of assets 10.00%    
Accumulated benefit obligation unfunded plans $ 3,900 $ 8,800  
Projected benefit obligation, unfunded plans 4,200 9,800  
Plan with accumulated benefit obligation in excess of plan assets, plan assets 300 4,400  
Fair value of company's common stock directly held in plan assets $ 385 $ 946  
Percentage of company's common stock to plan asset 0.90% 2.50%  
Retirement Plans      
Defined Benefit Plan Disclosure [Line Items]      
Amendments $ 5 $ (1,780)  
Plan Assets 41,930 38,195 $ 32,201
Other Benefit Plans      
Defined Benefit Plan Disclosure [Line Items]      
Amendments 0 0  
Plan Assets 102 90 $ 115
U.S. Plans      
Defined Benefit Plan Disclosure [Line Items]      
Contribution to pension plans 102    
International Plans      
Defined Benefit Plan Disclosure [Line Items]      
Contribution to pension plans 867    
Commingled funds | Level 2 | Other Benefit Plans      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets $ 102 $ 90  
Maximum | Retirement Plans      
Defined Benefit Plan Disclosure [Line Items]      
Retirement plan benefits Employee compensation Period 5 years    
v3.22.0.1
Pensions and Other Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Retirement Plans      
Defined Benefit Plan Disclosure [Line Items]      
Service cost $ 1,421 $ 1,380 $ 1,163
Interest cost 770 955 1,096
Expected return on plan assets (2,645) (2,461) (2,322)
Amortization of prior service cost (181) 2 4
Recognized actuarial losses (gains) 1,257 891 579
Curtailments and settlements 1 23 73
Net periodic benefit cost 623 790 593
Other Benefit Plans      
Defined Benefit Plan Disclosure [Line Items]      
Service cost 309 287 274
Interest cost 81 133 185
Expected return on plan assets (7) (7) (6)
Amortization of prior service cost (31) (31) (31)
Recognized actuarial losses (gains) 151 142 129
Curtailments and settlements 0 0 0
Net periodic benefit cost $ 503 $ 524 $ 551
v3.22.0.1
Pensions and Other Benefit Plans - Rates Used to Develop Actuarial Present Value of Projected Benefit Obligation (Details)
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Retirement Plans      
Net Periodic Benefit Cost      
Service cost discount rate 2.14% 2.82% 3.63%
Interest cost discount rate 2.34% 3.13% 4.13%
Rate of increase in compensation levels 4.01% 4.00% 3.99%
Expected long-term rate of return on plan assets 7.71% 8.12% 8.31%
Benefit Obligation      
Discount rate 2.49% 2.14% 2.91%
Rate of increase in compensation levels 4.01% 4.00% 4.01%
Other Benefit Plans      
Net Periodic Benefit Cost      
Service cost discount rate 2.09% 3.04% 4.45%
Interest cost discount rate 2.33% 3.08% 4.25%
Rate of increase in compensation levels 4.25% 4.25% 4.29%
Benefit Obligation      
Discount rate 2.68% 2.23% 3.39%
Rate of increase in compensation levels 4.21% 4.27% 4.29%
v3.22.0.1
Pensions and Other Benefit Plans - Assumed Health Care Cost Trend Rates (Details)
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract]    
Healthcare cost trend rate assumed for next year 5.33% 5.68%
Rate to which the cost trend rate is assumed to decline (ultimate trend) 3.73% 4.49%
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate 2046 2040
v3.22.0.1
Pensions and Other Benefit Plans - Schedule of Net Funded Status (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Change in Benefit Obligation      
Amendments $ (1,800)    
Amounts Recognized in the Company’s Balance Sheet consist of the following:      
Non-current assets 4,436 $ 656  
Current liabilities (557) (547)  
Non-current liabilities (8,898) (10,771)  
Retirement Plans      
Change in Benefit Obligation      
Projected benefit obligation - beginning of year 43,300 37,188  
Service cost 1,421 1,380 $ 1,163
Interest cost 770 955 1,096
Plan participant contributions 67 61  
Amendments 5 (1,780)  
Actuarial (gains) losses(2) (2,132) 5,716  
Divestitures & acquisitions (2) (88)  
Curtailments, settlements & restructuring (7) (24)  
Benefits paid from plan (1,157) (1,111)  
Effect of exchange rates (683) 1,003  
Projected benefit obligation - end of year 41,582 43,300 37,188
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value — beginning of year 38,195 32,201  
Actual return on plan assets 4,439 5,524  
Company contributions 969 870  
Plan participant contributions 67 61  
Settlements (7) (13)  
Divestitures & acquisitions (2) (84)  
Benefits paid from plan assets (1,157) (1,111)  
Effect of exchange rates (574) 747  
Plan assets at fair value - End of year 41,930 38,195 32,201
Funded status - end of year 348 (5,105)  
Amounts Recognized in the Company’s Balance Sheet consist of the following:      
Non-current assets 4,436 656  
Current liabilities (115) (125)  
Non-current liabilities (3,973) (5,636)  
Total recognized in the consolidated balance sheet — end of year 348 (5,105)  
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract]      
Net actuarial loss 5,539 10,860  
Prior service cost (credit)(1) (1,610) (1,797)  
Unrecognized net transition obligation 0 0  
Total before tax effects 3,929 9,063  
Accumulated Benefit Obligation 39,049 40,356  
Defined Benefit Plan, Amount Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Income) Loss, before Tax [Abstract]      
Net periodic benefit cost 623 790 593
Net actuarial (gain) loss (3,927) 2,616  
Amortization of net actuarial loss (1,257) (891)  
Prior service cost (credit) 5 (1,780)  
Amortization of prior service (cost) credit 181 (2)  
Effect of exchange rates (136) 293  
Total loss/(income) recognized in other comprehensive income, before tax (5,134) 236  
Total recognized in net periodic benefit cost and other comprehensive income (4,511) 1,026  
Other Benefit Plans      
Change in Benefit Obligation      
Projected benefit obligation - beginning of year 5,028 5,076  
Service cost 309 287 274
Interest cost 81 133 185
Plan participant contributions 0 0  
Amendments 0 0  
Actuarial (gains) losses(2) (188) (75)  
Divestitures & acquisitions 0 0  
Curtailments, settlements & restructuring 0 0  
Benefits paid from plan (348) (396)  
Effect of exchange rates (4) 3  
Projected benefit obligation - end of year 4,878 5,028 5,076
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value — beginning of year 90 115  
Actual return on plan assets 17 14  
Company contributions 343 357  
Plan participant contributions 0 0  
Settlements 0 0  
Divestitures & acquisitions 0 0  
Benefits paid from plan assets (348) (396)  
Effect of exchange rates 0 0  
Plan assets at fair value - End of year 102 90 115
Funded status - end of year (4,776) (4,938)  
Amounts Recognized in the Company’s Balance Sheet consist of the following:      
Non-current assets 0 0  
Current liabilities (438) (418)  
Non-current liabilities (4,338) (4,520)  
Total recognized in the consolidated balance sheet — end of year (4,776) (4,938)  
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract]      
Net actuarial loss 1,113 1,463  
Prior service cost (credit)(1) (13) (44)  
Unrecognized net transition obligation 0 0  
Total before tax effects 1,100 1,419  
Defined Benefit Plan, Amount Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Income) Loss, before Tax [Abstract]      
Net periodic benefit cost 503 524 $ 551
Net actuarial (gain) loss (199) (81)  
Amortization of net actuarial loss (151) (142)  
Prior service cost (credit) 0 0  
Amortization of prior service (cost) credit 31 31  
Effect of exchange rates 0 1  
Total loss/(income) recognized in other comprehensive income, before tax (319) (191)  
Total recognized in net periodic benefit cost and other comprehensive income $ 184 $ 333  
v3.22.0.1
Pensions and Other Benefit Plans - Information Related to the Benefit Obligation and the Fair Value of Plan Assets (Details) - USD ($)
$ in Millions
Jan. 02, 2022
Jan. 03, 2021
Qualified Plans | U.S. Plans    
Defined Benefit Plan Disclosure [Line Items]    
Plan Assets $ 27,944 $ 25,554
Projected Benefit Obligation 25,041 25,466
Accumulated Benefit Obligation 23,985 24,158
Projected Benefit Obligation 2,903 88
Accumulated Benefit Obligation 3,959 1,396
Non-Qualified Plans | U.S. Plans    
Defined Benefit Plan Disclosure [Line Items]    
Plan Assets 0 0
Projected Benefit Obligation 2,703 2,748
Accumulated Benefit Obligation 2,479 2,495
Projected Benefit Obligation (2,703) (2,748)
Accumulated Benefit Obligation (2,479) (2,495)
Funded Plans | International Plans    
Defined Benefit Plan Disclosure [Line Items]    
Plan Assets 13,986 12,641
Projected Benefit Obligation 13,428 14,541
Accumulated Benefit Obligation 12,212 13,210
Projected Benefit Obligation 558 (1,900)
Accumulated Benefit Obligation 1,774 (569)
Unfunded Plans | International Plans    
Defined Benefit Plan Disclosure [Line Items]    
Plan Assets 0 0
Projected Benefit Obligation 410 545
Accumulated Benefit Obligation 373 493
Projected Benefit Obligation (410) (545)
Accumulated Benefit Obligation $ (373) $ (493)
v3.22.0.1
Pensions and Other Benefit Plans - Projected Future Benefit Payments from Company's Retirement and Other Benefit Plans (Details)
$ in Millions
Jan. 02, 2022
USD ($)
Retirement plans  
Defined Benefit Plan Disclosure [Line Items]  
2022 $ 1,317
2023 1,386
2024 1,421
2025 1,496
2026 1,572
2027-2031 9,279
Other benefit plans   
Defined Benefit Plan Disclosure [Line Items]  
2022 447
2023 459
2024 472
2025 485
2026 434
2027-2031 $ 2,379
v3.22.0.1
Pensions and Other Benefit Plans - Projected Future Minimum Contributions to the Company's U.S. and International Unfunded Retirement Plans (Details)
$ in Millions
Jan. 02, 2022
USD ($)
Retirement Benefits [Abstract]  
2022 $ 114
2023 119
2024 126
2025 133
2026 139
2027-2031 $ 794
v3.22.0.1
Pensions and Other Benefit Plans - Company' Retirement Plan Asset Allocation and Target Allocations (Details)
Jan. 02, 2022
Jan. 03, 2021
Defined Benefit Plan Disclosure [Line Items]    
Percent of Plan Assets 100.00% 100.00%
Target Allocation 100.00%  
Equity securities    
Defined Benefit Plan Disclosure [Line Items]    
Percent of Plan Assets 65.00% 66.00%
Target Allocation 61.00%  
Debt securities    
Defined Benefit Plan Disclosure [Line Items]    
Percent of Plan Assets 35.00% 34.00%
Target Allocation 39.00%  
v3.22.0.1
Pensions and Other Benefit Plans - Schedule of Defined Benefit Plans Disclosures (Details) - Retirement plans - USD ($)
$ in Millions
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets $ 41,930 $ 38,195 $ 32,201
Fair Value, Measurements, Recurring      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 41,930 38,195  
Investments Measured at Net Asset Value 10,515 9,092  
Fair Value, Measurements, Recurring | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 14,209 14,502  
Fair Value, Measurements, Recurring | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 17,086 14,420  
Fair Value, Measurements, Recurring | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 120 181  
Fair Value, Measurements, Recurring | Short-term investment funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 1,135 890  
Fair Value, Measurements, Recurring | Short-term investment funds | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 102 127  
Fair Value, Measurements, Recurring | Short-term investment funds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 1,033 763  
Fair Value, Measurements, Recurring | Short-term investment funds | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 0 0  
Fair Value, Measurements, Recurring | Government and agency securities      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 7,016 5,023  
Fair Value, Measurements, Recurring | Government and agency securities | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 0 0  
Fair Value, Measurements, Recurring | Government and agency securities | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 7,016 5,023  
Fair Value, Measurements, Recurring | Government and agency securities | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 0 0  
Fair Value, Measurements, Recurring | Debt instruments      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 3,505 3,931  
Fair Value, Measurements, Recurring | Debt instruments | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 0 0  
Fair Value, Measurements, Recurring | Debt instruments | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 3,505 3,931  
Fair Value, Measurements, Recurring | Debt instruments | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 0 0  
Fair Value, Measurements, Recurring | Equity securities      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 14,109 14,377  
Fair Value, Measurements, Recurring | Equity securities | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 14,107 14,375  
Fair Value, Measurements, Recurring | Equity securities | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 2 2  
Fair Value, Measurements, Recurring | Equity securities | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 0 0  
Fair Value, Measurements, Recurring | Commingled funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 14,309 13,086  
Investments Measured at Net Asset Value 8,708 8,236  
Fair Value, Measurements, Recurring | Commingled funds | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 0 0  
Fair Value, Measurements, Recurring | Commingled funds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 5,496 4,690  
Fair Value, Measurements, Recurring | Commingled funds | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 105 160  
Fair Value, Measurements, Recurring | Other assets      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 1,856 888  
Investments Measured at Net Asset Value 1,807 856  
Fair Value, Measurements, Recurring | Other assets | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 0 0  
Fair Value, Measurements, Recurring | Other assets | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets 34 11  
Fair Value, Measurements, Recurring | Other assets | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Plan Assets $ 15 $ 21  
v3.22.0.1
Savings Plan - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Savings Plan [Abstract]      
Matching contributions $ 256 $ 243 $ 235
v3.22.0.1
Capital and Treasury Stock - Changes in Treasury Stock (Details) - USD ($)
shares in Thousands, $ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Changes in Treasury Stock Shares Outstanding [Roll Forward]      
Treasury Stock, beginning balance (shares) 487,331 487,336 457,519
Employee compensation and stock option plans (shares) (17,399) (21,765) (20,053)
Treasury Stock, ending balance (shares) 490,878 487,331 487,336
Changes in treasury stock      
Treasury Stock, Balance $ 38,490 $ 38,417 $ 34,362
Employee compensation and stock option plans (2,847) (3,148) (2,691)
Repurchase of common stock 3,456 3,221 6,746
Treasury Stock, Ending Balance $ 39,099 $ 38,490 $ 38,417
Treasury Stock      
Changes in Treasury Stock Shares Outstanding [Roll Forward]      
Repurchase of common stock (shares) 20,946 21,760 49,870
Changes in treasury stock      
Repurchase of common stock $ 3,456 $ 3,221 $ 6,746
v3.22.0.1
Capital and Treasury Stock - Narrative (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Billions
 12 Months Ended
Jan. 04, 2022
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Dec. 17, 2018
Equity, Class of Treasury Stock [Line Items]          
Common stock, shares issued (in shares)   3,119,843 3,119,843 3,119,843  
Cash dividends paid (in dollars per share)   $ 4.19 $ 3.98 $ 3.75  
Subsequent Event          
Equity, Class of Treasury Stock [Line Items]          
Common Stock, Dividends, Per Share, Declared $ 1.06        
December 17, 2018 Share Repurchase Program          
Equity, Class of Treasury Stock [Line Items]          
Stock repurchase program, authorized amount         $ 5.0
v3.22.0.1
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning Balance $ 63,278 $ 59,471 $ 59,752
Net change 2,184 649 (669)
Ending Balance 74,023 63,278 59,471
Foreign Currency Translation      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning Balance (8,938) (8,705) (8,869)
Net change (1,079) (233) 164
Ending Balance (10,017) (8,938) (8,705)
Gain/(Loss) On Securities      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning Balance 1 0 0
Net change (4) 1 0
Ending Balance (3) 1 0
Employee Benefit Plans      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning Balance (6,957) (6,891) (6,158)
Net change 4,255 (66) (733)
Ending Balance (2,702) (6,957) (6,891)
Gain/ (Loss) On Derivatives & Hedges      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning Balance 652 (295) (195)
Net change (988) 947 (100)
Ending Balance (336) 652 (295)
Accumulated Other Comprehensive Income (Loss)      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning Balance (15,242) (15,891) (15,222)
Net change 2,184 649 (669)
Ending Balance $ (13,058) $ (15,242) $ (15,891)
v3.22.0.1
International Currency Translation - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Foreign Currency Translation [Abstract]      
Foreign currency transaction gain (loss), before tax $ (236) $ (209) $ (267)
v3.22.0.1
Earnings Per Share - Reconciliation of Basic Net Earnings per Share to Diluted Net Earnings per Share (Details) - $ / shares
shares in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Reconciliation of basic net earnings per share to diluted net earnings per share      
Basic net earnings per share (in dollars per share) $ 7.93 $ 5.59 $ 5.72
Average shares outstanding — basic (in shares) 2,632.1 2,632.8 2,645.1
Potential shares exercisable under stock option plans (in shares) 138.0 118.3 136.3
Less: shares repurchased under treasury stock method (in shares) (96.1) (80.4) (97.8)
Convertible debt shares (in shares) 0.0 0.0 0.7
Average shares outstanding - diluted (in shares) 2,674.0 2,670.7 2,684.3
Diluted net earnings per share (in dollars per share) $ 7.81 $ 5.51 $ 5.63
v3.22.0.1
Earnings Per Share - Narrative (Details) - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Jan. 03, 2021
Dec. 29, 2019
Earnings Per Share [Abstract]    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 18  
Interest expense convertible debt   $ 1
v3.22.0.1
Common Stock, Stock Option Plans and Stock Compensation Agreements - Narrative (Details)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended
Jan. 02, 2022
USD ($)
StockBasedCompensationPlans
$ / shares
shares
Jan. 03, 2021
USD ($)
$ / shares
shares
Dec. 29, 2019
USD ($)
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of stock-based compensation plans | StockBasedCompensationPlans 2    
Compensation cost charged for Long term incentive plan $ 1,135 $ 1,005 $ 977
Total income tax benefit recognized 218 210 227
Exercise of options, tax benefit 223 248 209
Total compensation cost not yet recognized for option $ 862 $ 804 $ 823
Weighted average period for total compensation cost not yet recognized 1 year 9 months 10 days 1 year 9 months 3 days 1 year 8 months 15 days
Average fair value of option granted (in dollars per share) | $ / shares $ 20.86 $ 16.42 $ 17.80
Total intrinsic value of options exercised $ 919 $ 1,021 $ 807
Stock options outstanding (in shares) | shares 117,361 114,250 111,637
Stock option average life 5 years 9 months 18 days 6 years 6 years
Stock options exercisable | shares   61,289 60,761
Stock options average price | $ / shares   $ 96.97 $ 88.88
Employee Stock Option      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock options expiration period 10 years    
Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Average fair value of RSU's and PSU's granted | $ / shares $ 152.62 $ 139.58 $ 121.31
Fair Value of RSU or PSU units settled $ 611 $ 650 $ 586
Performance Shares      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 3 years    
Average fair value of RSU's and PSU's granted | $ / shares $ 179.35 $ 160.54 $ 124.67
Fair Value of RSU or PSU units settled $ 83 $ 91 $ 119
Minimum | Employee Stock Option      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 6 months    
Minimum | Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 6 months    
Minimum | Performance Shares      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 6 months    
Vesting percentage 0.00%    
Maximum | Employee Stock Option      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 4 years    
Maximum | Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 3 years    
Maximum | Performance Shares      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 3 years    
Vesting percentage 200.00%    
2012 Long-Term Incentive Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares authorized for issuance under long-term incentive plan | shares 650,000    
Shares available for future grants under long-term incentive plan | shares 240,000    
v3.22.0.1
Common Stock, Stock Option Plans and Stock Compensation Agreements - Schedule Valuation Assumptions (Details)
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Weighted average assumptions of fair value of options      
Risk-free rate 0.83% 1.47% 2.56%
Expected volatility 18.59% 15.33% 16.27%
Expected life (in years) 7 years 7 years 7 years
Expected dividend yield 2.50% 2.60% 2.80%
v3.22.0.1
Common Stock, Stock Option Plans and Stock Compensation Agreements - Summary of Stock Option Activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Dec. 30, 2018
Outstanding Shares        
Options outstanding beginning of period 114,250 111,637 109,652  
Options granted 18,525 20,723 19,745  
Options exercised (13,248) (16,275) (14,785)  
Options canceled/forfeited (2,166) (1,835) (2,975)  
Options outstanding end of period 117,361 114,250 111,637  
Weighted Average Exercise Price        
Options exercise price beginning of period (in dollars per share) $ 116.22 $ 105.63 $ 98.29  
Options granted, average exercise price (in dollars per share) 164.62 151.41 131.94  
Options exercised, average exercise price (in dollars per share) 97.48 86.05 82.43  
Options canceled/forfeited, average exercise price (in dollars per share) 149.75 137.62 125.11  
Options exercise price end of period (in dollars per share) $ 125.36 $ 116.22 $ 105.63  
Aggregate intrinsic value $ 5,364 $ 4,703 $ 4,478 $ 3,214
v3.22.0.1
Common Stock, Stock Option Plans and Stock Compensation Agreements - Summary of Options Outstanding (Details) - $ / shares
shares in Thousands
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Stock options outstanding and exercisable      
Outstanding number of Options (in shares) 117,361 114,250 111,637
Outstanding, Average Life 5 years 9 months 18 days 6 years 6 years
Outstanding Average Exercise Price (in dollars per share) $ 125.36    
Exercisable number of Options (in shares) 62,742    
Exercisable, Average Exercise Price (in dollars per share) $ 104.42    
$65.08-$90.44      
Stock options outstanding and exercisable      
Price Range, Minimum (in dollars per share) 65.08    
Price Range, Maximum (in dollars per share) $ 90.44    
Outstanding number of Options (in shares) 16,007    
Outstanding, Average Life 1 year 7 months 6 days    
Outstanding Average Exercise Price (in dollars per share) $ 81.92    
Exercisable number of Options (in shares) 16,007    
Exercisable, Average Exercise Price (in dollars per share) $ 81.92    
$100.06-$101.87      
Stock options outstanding and exercisable      
Price Range, Minimum (in dollars per share) 100.06    
Price Range, Maximum (in dollars per share) $ 101.87    
Outstanding number of Options (in shares) 22,647    
Outstanding, Average Life 3 years 7 months 6 days    
Outstanding Average Exercise Price (in dollars per share) $ 101.07    
Exercisable number of Options (in shares) 22,647    
Exercisable, Average Exercise Price (in dollars per share) $ 101.07    
$115.67-$129.51      
Stock options outstanding and exercisable      
Price Range, Minimum (in dollars per share) 115.67    
Price Range, Maximum (in dollars per share) $ 129.51    
Outstanding number of Options (in shares) 24,543    
Outstanding, Average Life 5 years 7 months 6 days    
Outstanding Average Exercise Price (in dollars per share) $ 122.59    
Exercisable number of Options (in shares) 23,972    
Exercisable, Average Exercise Price (in dollars per share) $ 122.43    
$131.94-$151.41      
Stock options outstanding and exercisable      
Price Range, Minimum (in dollars per share) 131.94    
Price Range, Maximum (in dollars per share) $ 151.41    
Outstanding number of Options (in shares) 36,304    
Outstanding, Average Life 7 years 7 months 6 days    
Outstanding Average Exercise Price (in dollars per share) $ 142.23    
Exercisable number of Options (in shares) 100    
Exercisable, Average Exercise Price (in dollars per share) $ 140.72    
$151.42-$164.62      
Stock options outstanding and exercisable      
Price Range, Minimum (in dollars per share) 151.42    
Price Range, Maximum (in dollars per share) $ 164.62    
Outstanding number of Options (in shares) 17,860    
Outstanding, Average Life 9 years 1 month 6 days    
Outstanding Average Exercise Price (in dollars per share) $ 164.62    
Exercisable number of Options (in shares) 16    
Exercisable, Average Exercise Price (in dollars per share) $ 164.62    
v3.22.0.1
Common Stock, Stock Option Plans and Stock Compensation Agreements - Summary of Restricted Share Units (Details)
shares in Thousands
 12 Months Ended
Jan. 02, 2022
shares
Restricted Stock Units (RSUs)  
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]  
Beginning balance (in shares) 14,998
Granted (in shares) 4,981
Issued (in shares) (5,101)
Canceled/forfeited/adjusted (in shares) 756
Ending balance (in shares) 14,122
Performance Shares  
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]  
Beginning balance (in shares) 2,236
Granted (in shares) 741
Issued (in shares) (610)
Canceled/forfeited/adjusted (in shares) (55)
Ending balance (in shares) 2,312
v3.22.0.1
Segments of Business and Geographic Areas - Sales by Segment of Business (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Segment Reporting Information [Line Items]      
Sales to Customers $ 93,775 $ 82,584 $ 82,059
Percentage Change In Sales By Segment Of Business 13.60% 0.60%  
Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 14,635 $ 14,053 13,898
Percentage Change In Sales By Segment Of Business 4.10% 1.10%  
Pharmaceutical      
Segment Reporting Information [Line Items]      
Sales to Customers $ 52,080 $ 45,572 42,198
Percentage Change In Sales By Segment Of Business 14.30% 8.00%  
Pharmaceutical | Immunology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 16,750 $ 15,055 13,950
Percentage Change In Sales By Segment Of Business 11.30% 7.90%  
Pharmaceutical | Infectious Diseases      
Segment Reporting Information [Line Items]      
Sales to Customers $ 5,861 $ 3,574 3,413
Percentage Change In Sales By Segment Of Business 64.00% 4.70%  
Pharmaceutical | Neuroscience      
Segment Reporting Information [Line Items]      
Sales to Customers $ 7,011 $ 6,548 6,328
Percentage Change In Sales By Segment Of Business 7.10% 3.50%  
Pharmaceutical | Oncology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 14,548 $ 12,367 10,692
Percentage Change In Sales By Segment Of Business 17.60% 15.70%  
Pharmaceutical | Pulmonary Hypertension      
Segment Reporting Information [Line Items]      
Sales to Customers $ 3,450 $ 3,148 2,623
Percentage Change In Sales By Segment Of Business 9.60% 20.00%  
Pharmaceutical | Cardiovascular/Metabolism/Other      
Segment Reporting Information [Line Items]      
Sales to Customers $ 4,460 $ 4,878 5,192
Percentage Change In Sales By Segment Of Business (8.60%) (6.00%)  
Medical Devices      
Segment Reporting Information [Line Items]      
Sales to Customers $ 27,060 $ 22,959 25,963
Percentage Change In Sales By Segment Of Business 17.90% (11.60%)  
Medical Devices | Interventional Solutions      
Segment Reporting Information [Line Items]      
Sales to Customers $ 3,971 $ 3,046 2,997
Percentage Change In Sales By Segment Of Business 30.40% 1.60%  
Medical Devices | Orthopaedics      
Segment Reporting Information [Line Items]      
Sales to Customers $ 8,588 $ 7,763 8,839
Percentage Change In Sales By Segment Of Business 10.60% (12.20%)  
Medical Devices | Surgery      
Segment Reporting Information [Line Items]      
Sales to Customers $ 9,812 $ 8,232 9,501
Percentage Change In Sales By Segment Of Business 19.20% (13.40%)  
Medical Devices | Vision      
Segment Reporting Information [Line Items]      
Sales to Customers $ 4,688 $ 3,919 4,624
Percentage Change In Sales By Segment Of Business 19.60% (15.20%)  
OTC | Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 5,227 $ 4,824 4,444
Percentage Change In Sales By Segment Of Business 8.40% 8.50%  
Skin health/Beauty | Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 4,541 $ 4,450 4,593
Percentage Change In Sales By Segment Of Business 2.00% (3.10%)  
Oral Care | Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,645 $ 1,641 1,528
Percentage Change In Sales By Segment Of Business 0.20% 7.40%  
Baby Care | Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,566 $ 1,517 1,675
Percentage Change In Sales By Segment Of Business 3.20% (9.40%)  
Women's Health | Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 917 $ 901 986
Percentage Change In Sales By Segment Of Business 1.80% (8.60%)  
Wound Care and Other | Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 739 $ 720 671
Percentage Change In Sales By Segment Of Business 2.60% 7.20%  
Remicade | Pharmaceutical | Immunology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 3,190 $ 3,747 4,380
Percentage Change In Sales By Segment Of Business (14.90%) (14.40%)  
Simponi/Simponi Aria | Pharmaceutical | Immunology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,276 $ 2,243 2,188
Percentage Change In Sales By Segment Of Business 1.40% 2.60%  
Stelara | Pharmaceutical | Immunology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 9,134 $ 7,707 6,361
Percentage Change In Sales By Segment Of Business 18.50% 21.10%  
Tremfya | Pharmaceutical | Immunology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,127 $ 1,347 1,012
Percentage Change In Sales By Segment Of Business 57.90% 33.20%  
Other Immunology | Pharmaceutical | Immunology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 24 $ 11 10
Percentage Change In Sales By Segment Of Business   6.40%  
COVID-19 | Pharmaceutical | Infectious Diseases      
Segment Reporting Information [Line Items]      
Sales to Customers 2,385 $ 0 0
EDURANT/rilpivirine | Pharmaceutical | Infectious Diseases      
Segment Reporting Information [Line Items]      
Sales to Customers $ 994 $ 964 861
Percentage Change In Sales By Segment Of Business 3.10% 11.90%  
PREZISTA/PREZCOBIX/REZOLSTA/SYMTUZA | Pharmaceutical | Infectious Diseases      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,083 $ 2,184 2,110
Percentage Change In Sales By Segment Of Business (4.60%) 3.50%  
Other Infectious Diseases | Pharmaceutical | Infectious Diseases      
Segment Reporting Information [Line Items]      
Sales to Customers $ 399 $ 427 441
Percentage Change In Sales By Segment Of Business (6.50%) (3.20%)  
CONCERTA/Methylphenidate | Pharmaceutical | Neuroscience      
Segment Reporting Information [Line Items]      
Sales to Customers $ 667 $ 622 696
Percentage Change In Sales By Segment Of Business 7.30% (10.60%)  
INVEGA SUSTENNA/XEPLION/TRINZA/TREVICTA | Pharmaceutical | Neuroscience      
Segment Reporting Information [Line Items]      
Sales to Customers $ 4,022 $ 3,653 3,330
Percentage Change In Sales By Segment Of Business 10.10% 9.70%  
RISPERDAL CONSTA | Pharmaceutical | Neuroscience      
Segment Reporting Information [Line Items]      
Sales to Customers $ 592 $ 642 688
Percentage Change In Sales By Segment Of Business (7.70%) (6.80%)  
OTHER NEUROSCIENCE | Pharmaceutical | Neuroscience      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,729 $ 1,632 1,614
Percentage Change In Sales By Segment Of Business 6.00% 1.10%  
DARZALEX | Pharmaceutical | Oncology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 6,023 $ 4,190 2,998
Percentage Change In Sales By Segment Of Business 43.80% 39.80%  
ERLEADA | Pharmaceutical | Oncology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,291 $ 760 332
Percentage Change In Sales By Segment Of Business 70.00%    
IMBRUVICA | Pharmaceutical | Oncology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 4,369 $ 4,128 3,411
Percentage Change In Sales By Segment Of Business 5.80% 21.00%  
ZYTIGA/abiraterone acetate | Pharmaceutical | Oncology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,297 $ 2,470 2,795
Percentage Change In Sales By Segment Of Business (7.00%) (11.60%)  
Other Oncology | Pharmaceutical | Oncology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 568 $ 821 1,158
Percentage Change In Sales By Segment Of Business (30.80%) (29.10%)  
OPSUMIT | Pharmaceutical | Pulmonary Hypertension      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,819 $ 1,639 1,327
Percentage Change In Sales By Segment Of Business 11.00% 23.50%  
UPTRAVI | Pharmaceutical | Pulmonary Hypertension      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,237 $ 1,093 819
Percentage Change In Sales By Segment Of Business 13.10% 33.50%  
Other | Pharmaceutical | Pulmonary Hypertension      
Segment Reporting Information [Line Items]      
Sales to Customers $ 395 $ 416 476
Percentage Change In Sales By Segment Of Business (5.00%) (12.80%)  
Other | Pharmaceutical | Cardiovascular/Metabolism/Other      
Segment Reporting Information [Line Items]      
Sales to Customers $ 981 $ 1,186 1,353
Percentage Change In Sales By Segment Of Business (17.30%) (12.40%)  
XARELTO | Pharmaceutical | Cardiovascular/Metabolism/Other      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,438 $ 2,345 2,313
Percentage Change In Sales By Segment Of Business 4.00% 1.40%  
INVOKANA/INVOKAMET | Pharmaceutical | Cardiovascular/Metabolism/Other      
Segment Reporting Information [Line Items]      
Sales to Customers $ 563 $ 795 735
Percentage Change In Sales By Segment Of Business (29.30%) 8.20%  
PROCRIT/EPREX | Pharmaceutical | Cardiovascular/Metabolism/Other      
Segment Reporting Information [Line Items]      
Sales to Customers $ 479 $ 552 790
Percentage Change In Sales By Segment Of Business (13.30%) (30.20%)  
HIPS | Medical Devices | Orthopaedics      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,485 $ 1,280 1,438
Percentage Change In Sales By Segment Of Business 16.00% (11.00%)  
KNEES | Medical Devices | Orthopaedics      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,325 $ 1,170 1,480
Percentage Change In Sales By Segment Of Business 13.30% (21.00%)  
TRAUMA | Medical Devices | Orthopaedics      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,885 $ 2,614 2,720
Percentage Change In Sales By Segment Of Business 10.40% (3.90%)  
SPINE,SPORTS & OTHER | Medical Devices | Orthopaedics      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,893 $ 2,699 3,201
Percentage Change In Sales By Segment Of Business 7.20% (15.70%)  
ADVANCED | Medical Devices | Surgery      
Segment Reporting Information [Line Items]      
Sales to Customers $ 4,622 $ 3,839 4,095
Percentage Change In Sales By Segment Of Business 20.40% (6.20%)  
GENERAL | Medical Devices | Surgery      
Segment Reporting Information [Line Items]      
Sales to Customers $ 5,190 $ 4,392 5,406
Percentage Change In Sales By Segment Of Business 18.10% (18.80%)  
CONTACT LENSES/OTHER | Medical Devices | Vision      
Segment Reporting Information [Line Items]      
Sales to Customers $ 3,440 $ 2,994 3,392
Percentage Change In Sales By Segment Of Business 14.90% (11.70%)  
SURGICAL | Medical Devices | Vision      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,248 $ 925 1,232
Percentage Change In Sales By Segment Of Business 34.90% (24.90%)  
United States      
Segment Reporting Information [Line Items]      
Sales to Customers $ 47,156 $ 43,133 42,097
Percentage Change In Sales By Segment Of Business 9.30% 2.50%  
United States | Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 6,516 $ 6,362 5,839
Percentage Change In Sales By Segment Of Business 2.40% 9.00%  
United States | Pharmaceutical      
Segment Reporting Information [Line Items]      
Sales to Customers $ 27,954 $ 25,735 23,874
Percentage Change In Sales By Segment Of Business 8.60% 7.80%  
United States | Pharmaceutical | Immunology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 10,843 $ 10,175 9,641
Percentage Change In Sales By Segment Of Business 6.60% 5.50%  
United States | Pharmaceutical | Infectious Diseases      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,249 $ 1,735 1,597
Percentage Change In Sales By Segment Of Business 29.70% 8.60%  
United States | Pharmaceutical | Neuroscience      
Segment Reporting Information [Line Items]      
Sales to Customers $ 3,347 $ 3,091 2,919
Percentage Change In Sales By Segment Of Business 8.30% 5.90%  
United States | Pharmaceutical | Oncology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 5,958 $ 5,092 4,299
Percentage Change In Sales By Segment Of Business 17.00% 18.50%  
United States | Pharmaceutical | Pulmonary Hypertension      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,365 $ 2,133 1,684
Percentage Change In Sales By Segment Of Business 10.90% 26.60%  
United States | Pharmaceutical | Cardiovascular/Metabolism/Other      
Segment Reporting Information [Line Items]      
Sales to Customers $ 3,192 $ 3,509 3,734
Percentage Change In Sales By Segment Of Business (9.00%) (6.00%)  
United States | Medical Devices      
Segment Reporting Information [Line Items]      
Sales to Customers $ 12,686 $ 11,036 12,384
Percentage Change In Sales By Segment Of Business 14.90% (10.90%)  
United States | Medical Devices | Interventional Solutions      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,836 $ 1,452 1,443
Percentage Change In Sales By Segment Of Business 26.40% 0.60%  
United States | Medical Devices | Orthopaedics      
Segment Reporting Information [Line Items]      
Sales to Customers $ 5,126 $ 4,779 5,319
Percentage Change In Sales By Segment Of Business 7.30% (10.20%)  
United States | Medical Devices | Surgery      
Segment Reporting Information [Line Items]      
Sales to Customers $ 3,867 $ 3,249 3,828
Percentage Change In Sales By Segment Of Business 19.00% (15.10%)  
United States | Medical Devices | Vision      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,857 $ 1,557 1,794
Percentage Change In Sales By Segment Of Business 19.30% (13.20%)  
United States | OTC | Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,594 $ 2,460 2,010
Percentage Change In Sales By Segment Of Business 5.40% 22.40%  
United States | Skin health/Beauty | Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,400 $ 2,350 2,392
Percentage Change In Sales By Segment Of Business 2.10% (1.70%)  
United States | Oral Care | Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 637 $ 683 621
Percentage Change In Sales By Segment Of Business (6.70%) 9.90%  
United States | Baby Care | Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 378 $ 376 362
Percentage Change In Sales By Segment Of Business 0.50% 3.70%  
United States | Women's Health | Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 13 $ 13 12
Percentage Change In Sales By Segment Of Business (1.60%) 8.20%  
United States | Wound Care and Other | Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 495 $ 480 441
Percentage Change In Sales By Segment Of Business 3.10% 8.90%  
United States | Remicade | Pharmaceutical | Immunology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,019 $ 2,508 3,079
Percentage Change In Sales By Segment Of Business (19.50%) (18.50%)  
United States | Simponi/Simponi Aria | Pharmaceutical | Immunology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,127 $ 1,155 1,159
Percentage Change In Sales By Segment Of Business (2.40%) (0.30%)  
United States | Stelara | Pharmaceutical | Immunology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 5,938 $ 5,240 4,346
Percentage Change In Sales By Segment Of Business 13.30% 20.60%  
United States | Tremfya | Pharmaceutical | Immunology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,503 $ 926 764
Percentage Change In Sales By Segment Of Business 62.30% 21.30%  
United States | Other Immunology | Pharmaceutical | Immunology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 21 $ 0 0
Percentage Change In Sales By Segment Of Business   0.00%  
United States | COVID-19 | Pharmaceutical | Infectious Diseases      
Segment Reporting Information [Line Items]      
Sales to Customers 634 $ 0 0
United States | EDURANT/rilpivirine | Pharmaceutical | Infectious Diseases      
Segment Reporting Information [Line Items]      
Sales to Customers $ 41 $ 44 50
Percentage Change In Sales By Segment Of Business (7.60%) (11.20%)  
United States | PREZISTA/PREZCOBIX/REZOLSTA/SYMTUZA | Pharmaceutical | Infectious Diseases      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,508 $ 1,587 1,422
Percentage Change In Sales By Segment Of Business (4.90%) 11.60%  
United States | Other Infectious Diseases | Pharmaceutical | Infectious Diseases      
Segment Reporting Information [Line Items]      
Sales to Customers $ 66 $ 104 126
Percentage Change In Sales By Segment Of Business (36.00%) (17.60%)  
United States | CONCERTA/Methylphenidate | Pharmaceutical | Neuroscience      
Segment Reporting Information [Line Items]      
Sales to Customers $ 172 $ 183 233
Percentage Change In Sales By Segment Of Business (5.80%) (21.40%)  
United States | INVEGA SUSTENNA/XEPLION/TRINZA/TREVICTA | Pharmaceutical | Neuroscience      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,550 $ 2,314 2,107
Percentage Change In Sales By Segment Of Business 10.20% 9.80%  
United States | RISPERDAL CONSTA | Pharmaceutical | Neuroscience      
Segment Reporting Information [Line Items]      
Sales to Customers $ 287 $ 296 314
Percentage Change In Sales By Segment Of Business (2.90%) (5.90%)  
United States | OTHER NEUROSCIENCE | Pharmaceutical | Neuroscience      
Segment Reporting Information [Line Items]      
Sales to Customers $ 338 $ 298 266
Percentage Change In Sales By Segment Of Business 13.30% 12.40%  
United States | DARZALEX | Pharmaceutical | Oncology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 3,169 $ 2,232 1,567
Percentage Change In Sales By Segment Of Business 42.00% 42.40%  
United States | ERLEADA | Pharmaceutical | Oncology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 813 $ 583 297
Percentage Change In Sales By Segment Of Business 39.30% 96.10%  
United States | IMBRUVICA | Pharmaceutical | Oncology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,747 $ 1,821 1,555
Percentage Change In Sales By Segment Of Business (4.00%) 17.10%  
United States | ZYTIGA/abiraterone acetate | Pharmaceutical | Oncology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 119 $ 373 810
Percentage Change In Sales By Segment Of Business (68.10%) (54.00%)  
United States | Other Oncology | Pharmaceutical | Oncology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 110 $ 83 70
Percentage Change In Sales By Segment Of Business 31.70% 18.60%  
United States | OPSUMIT | Pharmaceutical | Pulmonary Hypertension      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,147 $ 1,008 766
Percentage Change In Sales By Segment Of Business 13.70% 31.70%  
United States | UPTRAVI | Pharmaceutical | Pulmonary Hypertension      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,056 $ 955 714
Percentage Change In Sales By Segment Of Business 10.50% 33.80%  
United States | Other | Pharmaceutical | Pulmonary Hypertension      
Segment Reporting Information [Line Items]      
Sales to Customers $ 163 $ 169 205
Percentage Change In Sales By Segment Of Business (3.70%) (17.60%)  
United States | Other | Pharmaceutical | Cardiovascular/Metabolism/Other      
Segment Reporting Information [Line Items]      
Sales to Customers $ 223 $ 323 380
Percentage Change In Sales By Segment Of Business (31.00%) (15.10%)  
United States | XARELTO | Pharmaceutical | Cardiovascular/Metabolism/Other      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,438 $ 2,345 2,313
Percentage Change In Sales By Segment Of Business 4.00% 1.40%  
United States | INVOKANA/INVOKAMET | Pharmaceutical | Cardiovascular/Metabolism/Other      
Segment Reporting Information [Line Items]      
Sales to Customers $ 308 $ 564 536
Percentage Change In Sales By Segment Of Business (45.40%) 5.20%  
United States | PROCRIT/EPREX | Pharmaceutical | Cardiovascular/Metabolism/Other      
Segment Reporting Information [Line Items]      
Sales to Customers $ 223 $ 277 505
Percentage Change In Sales By Segment Of Business (19.70%) (45.10%)  
United States | HIPS | Medical Devices | Orthopaedics      
Segment Reporting Information [Line Items]      
Sales to Customers $ 883 $ 793 863
Percentage Change In Sales By Segment Of Business 11.40% (8.20%)  
United States | KNEES | Medical Devices | Orthopaedics      
Segment Reporting Information [Line Items]      
Sales to Customers $ 787 $ 743 889
Percentage Change In Sales By Segment Of Business 5.90% (16.40%)  
United States | TRAUMA | Medical Devices | Orthopaedics      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,819 $ 1,648 1,652
Percentage Change In Sales By Segment Of Business 10.40% (0.20%)  
United States | SPINE,SPORTS & OTHER | Medical Devices | Orthopaedics      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,637 $ 1,595 1,915
Percentage Change In Sales By Segment Of Business 2.60% (16.70%)  
United States | ADVANCED | Medical Devices | Surgery      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,761 $ 1,535 1,637
Percentage Change In Sales By Segment Of Business 14.90% (6.20%)  
United States | GENERAL | Medical Devices | Surgery      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,105 $ 1,714 2,192
Percentage Change In Sales By Segment Of Business 22.70% (21.80%)  
United States | CONTACT LENSES/OTHER | Medical Devices | Vision      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,398 $ 1,213 1,304
Percentage Change In Sales By Segment Of Business 15.20% (7.00%)  
United States | SURGICAL | Medical Devices | Vision      
Segment Reporting Information [Line Items]      
Sales to Customers $ 459 $ 344 490
Percentage Change In Sales By Segment Of Business 33.50% (29.70%)  
Non-US      
Segment Reporting Information [Line Items]      
Sales to Customers $ 46,619 $ 39,451 39,962
Percentage Change In Sales By Segment Of Business 18.20% (1.30%)  
Non-US | Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 8,119 $ 7,691 8,059
Percentage Change In Sales By Segment Of Business 5.60% (4.60%)  
Non-US | Pharmaceutical      
Segment Reporting Information [Line Items]      
Sales to Customers $ 24,126 $ 19,837 18,324
Percentage Change In Sales By Segment Of Business 21.60% 8.30%  
Non-US | Pharmaceutical | Immunology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 5,907 $ 4,880 4,309
Percentage Change In Sales By Segment Of Business 21.00% 13.20%  
Non-US | Pharmaceutical | Infectious Diseases      
Segment Reporting Information [Line Items]      
Sales to Customers $ 3,612 $ 1,839 1,815
Percentage Change In Sales By Segment Of Business 96.30% 1.30%  
Non-US | Pharmaceutical | Neuroscience      
Segment Reporting Information [Line Items]      
Sales to Customers $ 3,664 $ 3,457 3,409
Percentage Change In Sales By Segment Of Business 6.00% 1.40%  
Non-US | Pharmaceutical | Oncology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 8,590 $ 7,275 6,393
Percentage Change In Sales By Segment Of Business 18.10% 13.80%  
Non-US | Pharmaceutical | Pulmonary Hypertension      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,085 $ 1,015 939
Percentage Change In Sales By Segment Of Business 6.90% 8.20%  
Non-US | Pharmaceutical | Cardiovascular/Metabolism/Other      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,268 $ 1,369 1,458
Percentage Change In Sales By Segment Of Business (7.40%) (6.10%)  
Non-US | Medical Devices      
Segment Reporting Information [Line Items]      
Sales to Customers $ 14,374 $ 11,923 13,579
Percentage Change In Sales By Segment Of Business 20.60% (12.20%)  
Non-US | Medical Devices | Interventional Solutions      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,135 $ 1,594 1,554
Percentage Change In Sales By Segment Of Business 34.00% 2.60%  
Non-US | Medical Devices | Orthopaedics      
Segment Reporting Information [Line Items]      
Sales to Customers $ 3,462 $ 2,984 3,520
Percentage Change In Sales By Segment Of Business 16.00% (15.20%)  
Non-US | Medical Devices | Surgery      
Segment Reporting Information [Line Items]      
Sales to Customers $ 5,945 $ 4,983 5,673
Percentage Change In Sales By Segment Of Business 19.30% (12.20%)  
Non-US | Medical Devices | Vision      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,831 $ 2,362 2,830
Percentage Change In Sales By Segment Of Business 19.80% (16.50%)  
Non-US | OTC | Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,634 $ 2,364 2,434
Percentage Change In Sales By Segment Of Business 11.40% (2.90%)  
Non-US | Skin health/Beauty | Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,141 $ 2,100 2,201
Percentage Change In Sales By Segment Of Business 1.90% (4.60%)  
Non-US | Oral Care | Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,008 $ 958 906
Percentage Change In Sales By Segment Of Business 5.10% 5.70%  
Non-US | Baby Care | Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,188 $ 1,141 1,313
Percentage Change In Sales By Segment Of Business 4.10% (13.10%)  
Non-US | Women's Health | Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 905 $ 888 974
Percentage Change In Sales By Segment Of Business 1.80% (8.80%)  
Non-US | Wound Care and Other | Consumer Health      
Segment Reporting Information [Line Items]      
Sales to Customers $ 243 $ 240 230
Percentage Change In Sales By Segment Of Business 1.70% 4.10%  
Non-US | Remicade | Pharmaceutical | Immunology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 935 $ 893 1,007
Percentage Change In Sales By Segment Of Business 4.80% (11.40%)  
Non-US | Simponi/Simponi Aria | Pharmaceutical | Immunology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,148 $ 1,088 1,029
Percentage Change In Sales By Segment Of Business 5.50% 5.80%  
Non-US | Stelara | Pharmaceutical | Immunology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 3,196 $ 2,467 2,015
Percentage Change In Sales By Segment Of Business 29.60% 22.40%  
Non-US | Tremfya | Pharmaceutical | Immunology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 624 $ 421 248
Percentage Change In Sales By Segment Of Business 48.20% 69.90%  
Non-US | Other Immunology | Pharmaceutical | Immunology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 3 $ 11 10
Percentage Change In Sales By Segment Of Business (73.30%) 6.40%  
Non-US | COVID-19 | Pharmaceutical | Infectious Diseases      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,751 $ 0 0
Non-US | EDURANT/rilpivirine | Pharmaceutical | Infectious Diseases      
Segment Reporting Information [Line Items]      
Sales to Customers $ 953 $ 920 812
Percentage Change In Sales By Segment Of Business 3.60% 13.30%  
Non-US | PREZISTA/PREZCOBIX/REZOLSTA/SYMTUZA | Pharmaceutical | Infectious Diseases      
Segment Reporting Information [Line Items]      
Sales to Customers $ 575 $ 597 689
Percentage Change In Sales By Segment Of Business (3.60%) (13.40%)  
Non-US | Other Infectious Diseases | Pharmaceutical | Infectious Diseases      
Segment Reporting Information [Line Items]      
Sales to Customers $ 333 $ 323 315
Percentage Change In Sales By Segment Of Business 3.00% 2.60%  
Non-US | CONCERTA/Methylphenidate | Pharmaceutical | Neuroscience      
Segment Reporting Information [Line Items]      
Sales to Customers $ 495 $ 439 463
Percentage Change In Sales By Segment Of Business 12.80% (5.10%)  
Non-US | INVEGA SUSTENNA/XEPLION/TRINZA/TREVICTA | Pharmaceutical | Neuroscience      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,472 $ 1,339 1,224
Percentage Change In Sales By Segment Of Business 10.00% 9.40%  
Non-US | RISPERDAL CONSTA | Pharmaceutical | Neuroscience      
Segment Reporting Information [Line Items]      
Sales to Customers $ 305 $ 346 374
Percentage Change In Sales By Segment Of Business (11.80%) (7.50%)  
Non-US | OTHER NEUROSCIENCE | Pharmaceutical | Neuroscience      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,391 $ 1,334 1,349
Percentage Change In Sales By Segment Of Business 4.30% (1.10%)  
Non-US | DARZALEX | Pharmaceutical | Oncology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,854 $ 1,958 1,430
Percentage Change In Sales By Segment Of Business 45.80% 36.90%  
Non-US | ERLEADA | Pharmaceutical | Oncology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 478 $ 176 35
Non-US | IMBRUVICA | Pharmaceutical | Oncology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,622 $ 2,307 1,856
Percentage Change In Sales By Segment Of Business 13.60% 24.30%  
Non-US | ZYTIGA/abiraterone acetate | Pharmaceutical | Oncology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,178 $ 2,097 1,985
Percentage Change In Sales By Segment Of Business 3.90% 5.60%  
Non-US | Other Oncology | Pharmaceutical | Oncology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 458 $ 738 1,087
Percentage Change In Sales By Segment Of Business (37.90%) (32.10%)  
Non-US | OPSUMIT | Pharmaceutical | Pulmonary Hypertension      
Segment Reporting Information [Line Items]      
Sales to Customers $ 672 $ 631 562
Percentage Change In Sales By Segment Of Business 6.60% 12.30%  
Non-US | UPTRAVI | Pharmaceutical | Pulmonary Hypertension      
Segment Reporting Information [Line Items]      
Sales to Customers $ 181 $ 138 105
Percentage Change In Sales By Segment Of Business 31.10% 30.90%  
Non-US | Other | Pharmaceutical | Pulmonary Hypertension      
Segment Reporting Information [Line Items]      
Sales to Customers $ 232 $ 247 272
Percentage Change In Sales By Segment Of Business (5.90%) (9.20%)  
Non-US | Other | Pharmaceutical | Cardiovascular/Metabolism/Other      
Segment Reporting Information [Line Items]      
Sales to Customers $ 758 $ 864 974
Percentage Change In Sales By Segment Of Business (12.20%) (11.30%)  
Non-US | XARELTO | Pharmaceutical | Cardiovascular/Metabolism/Other      
Segment Reporting Information [Line Items]      
Sales to Customers $ 0 $ 0 0
Percentage Change In Sales By Segment Of Business 0.00% 0.00%  
Non-US | INVOKANA/INVOKAMET | Pharmaceutical | Cardiovascular/Metabolism/Other      
Segment Reporting Information [Line Items]      
Sales to Customers $ 254 $ 231 199
Percentage Change In Sales By Segment Of Business 9.90% 16.30%  
Non-US | PROCRIT/EPREX | Pharmaceutical | Cardiovascular/Metabolism/Other      
Segment Reporting Information [Line Items]      
Sales to Customers $ 256 $ 274 285
Percentage Change In Sales By Segment Of Business (6.80%) (3.80%)  
Non-US | HIPS | Medical Devices | Orthopaedics      
Segment Reporting Information [Line Items]      
Sales to Customers $ 602 $ 487 575
Percentage Change In Sales By Segment Of Business 23.60% (15.30%)  
Non-US | KNEES | Medical Devices | Orthopaedics      
Segment Reporting Information [Line Items]      
Sales to Customers $ 538 $ 427 591
Percentage Change In Sales By Segment Of Business 26.10% (27.80%)  
Non-US | TRAUMA | Medical Devices | Orthopaedics      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,066 $ 966 1,068
Percentage Change In Sales By Segment Of Business 10.40% (9.60%)  
Non-US | SPINE,SPORTS & OTHER | Medical Devices | Orthopaedics      
Segment Reporting Information [Line Items]      
Sales to Customers $ 1,256 $ 1,104 1,286
Percentage Change In Sales By Segment Of Business 13.80% (14.10%)  
Non-US | ADVANCED | Medical Devices | Surgery      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,861 $ 2,304 2,458
Percentage Change In Sales By Segment Of Business 24.10% (6.20%)  
Non-US | GENERAL | Medical Devices | Surgery      
Segment Reporting Information [Line Items]      
Sales to Customers $ 3,085 $ 2,679 3,215
Percentage Change In Sales By Segment Of Business 15.20% (16.70%)  
Non-US | CONTACT LENSES/OTHER | Medical Devices | Vision      
Segment Reporting Information [Line Items]      
Sales to Customers $ 2,043 $ 1,781 2,088
Percentage Change In Sales By Segment Of Business 14.70% (14.70%)  
Non-US | SURGICAL | Medical Devices | Vision      
Segment Reporting Information [Line Items]      
Sales to Customers $ 788 $ 581 742
Percentage Change In Sales By Segment Of Business 35.70% (21.70%)  
UNITED STATES Exports | Remicade | Pharmaceutical | Immunology      
Segment Reporting Information [Line Items]      
Sales to Customers $ 236 $ 346 $ 294
Percentage Change In Sales By Segment Of Business (31.90%) 18.00%  
v3.22.0.1
Segments of Business and Geographic Areas - Schedule of Segment Reporting Information (Details)
$ in Millions
 12 Months Ended
Jan. 02, 2022
USD ($)
Segment
Jan. 03, 2021
USD ($)
Dec. 29, 2019
USD ($)
Segment
Oct. 31, 2020
USD ($)
Oct. 31, 2019
USD ($)
Segment Reporting Information [Line Items]          
Earnings before provision for taxes on income $ 22,776 $ 16,497 $ 17,328    
Identifiable Assets 182,018 174,894      
Additions to Property, Plant & Equipment 3,652 3,347 3,498    
Depreciation and Amortization 7,390 7,231 7,009    
Sales to Customers $ 93,775 82,584 $ 82,059    
Number of segments | Segment 3   3    
Restructuring charges $ 252 247 $ 266    
In-process research and development 900 181 890    
Contingent consideration reversal 0 (1,148) 0    
AdvancedSterilizationProducts          
Segment Reporting Information [Line Items]          
Gain (loss) on divestiture     $ 2,000    
Property, Plant and Equipment          
Segment Reporting Information [Line Items]          
Long-Lived Assets 18,962 18,766      
Other Intangible Assets          
Segment Reporting Information [Line Items]          
Long-Lived Assets 81,638 $ 89,795      
Pending Litigation          
Segment Reporting Information [Line Items]          
Loss contingency, estimate of possible loss       $ 5,000 $ 4,000
Auris Health          
Segment Reporting Information [Line Items]          
Contingent consideration reversal $ (1,148)        
Wholesaler 1 | Sales Revenue, Net | Wholesaler Concentration Risk          
Segment Reporting Information [Line Items]          
Concentration risk (as a percent) 14.00% 16.00% 15.00%    
Wholesaler 2 | Sales Revenue, Net | Wholesaler Concentration Risk          
Segment Reporting Information [Line Items]          
Concentration risk (as a percent) 11.00% 12.00% 12.00%    
Wholesaler 3 | Sales Revenue, Net | Wholesaler Concentration Risk          
Segment Reporting Information [Line Items]          
Concentration risk (as a percent) 11.00% 12.00% 11.00%    
United States          
Segment Reporting Information [Line Items]          
Sales to Customers $ 47,156 $ 43,133 $ 42,097    
Consumer Health          
Segment Reporting Information [Line Items]          
Sales to Customers 14,635 14,053 13,898    
Litigation expense 1,600 3,900 400    
Restructuring charges 100   100    
Consumer Health | Ci:z Holdings Co. Ltd.          
Segment Reporting Information [Line Items]          
Gain (loss) on sale of equity investments     300    
Consumer Health | United States          
Segment Reporting Information [Line Items]          
Sales to Customers 6,516 6,362 5,839    
Pharmaceutical          
Segment Reporting Information [Line Items]          
Sales to Customers 52,080 45,572 42,198    
Litigation expense 600 800 4,300    
Restructuring charges 100 100 100    
Gain (loss) on divestiture 600        
Marketable securities, realized gain (loss) 500        
In-process research and development     900    
Research and development expense     300    
Pharmaceutical | Auris Health          
Segment Reporting Information [Line Items]          
Acquisition related costs     100    
Pharmaceutical | Actelion          
Segment Reporting Information [Line Items]          
Acquisition related costs     200    
Pharmaceutical | United States          
Segment Reporting Information [Line Items]          
Sales to Customers 27,954 25,735 23,874    
Medical Devices          
Segment Reporting Information [Line Items]          
Sales to Customers 27,060 22,959 25,963    
Litigation expense 100 300 400    
Restructuring charges 300 300 400    
In-process research and development 900 200      
Regulation charge 200 100      
Medical Devices | Auris Health | Other Income          
Segment Reporting Information [Line Items]          
Contingent consideration reversal   (1,100)      
Medical Devices | United States          
Segment Reporting Information [Line Items]          
Sales to Customers 12,686 11,036 12,384    
Segments Total          
Segment Reporting Information [Line Items]          
Identifiable Assets 142,829 143,091      
Additions to Property, Plant & Equipment 3,462 3,091 3,190    
Depreciation and Amortization 7,074 6,931 6,689    
Corporate, Non-Segment          
Segment Reporting Information [Line Items]          
Less: Expense not allocated to segments 1,072 945 835    
Other Non Long Lived Assets 81,418 66,333      
Corporate, Non-Segment | General Corporate          
Segment Reporting Information [Line Items]          
Identifiable Assets 39,189 31,803      
Additions to Property, Plant & Equipment 190 256 308    
Depreciation and Amortization 316 300 320    
Long-Lived Assets 1,014 1,029      
Operating Segments          
Segment Reporting Information [Line Items]          
Earnings before provision for taxes on income 23,848 17,442 18,163    
Sales to Customers 93,775 82,584 82,059    
Long-Lived Assets 99,586 107,532      
Operating Segments | United States          
Segment Reporting Information [Line Items]          
Sales to Customers 47,156 43,133 42,097    
Long-Lived Assets 48,586 49,951      
Operating Segments | Europe          
Segment Reporting Information [Line Items]          
Sales to Customers 23,594 18,980 18,466    
Long-Lived Assets 43,257 49,363      
Operating Segments | Western Hemisphere excluding U.S.           
Segment Reporting Information [Line Items]          
Sales to Customers 5,750 5,335 5,941    
Long-Lived Assets 2,708 2,734      
Operating Segments | Asia-Pacific, Africa          
Segment Reporting Information [Line Items]          
Sales to Customers 17,275 15,136 15,555    
Long-Lived Assets 5,035 5,484      
Operating Segments | Consumer Health          
Segment Reporting Information [Line Items]          
Earnings before provision for taxes on income 1,294 (1,064) 2,061    
Identifiable Assets 25,081 27,355      
Additions to Property, Plant & Equipment 331 248 328    
Depreciation and Amortization 759 785 765    
Operating Segments | Pharmaceutical          
Segment Reporting Information [Line Items]          
Earnings before provision for taxes on income 18,181 15,462 8,816    
Identifiable Assets 64,376 66,158      
Additions to Property, Plant & Equipment 1,198 863 950    
Depreciation and Amortization 4,029 4,006 3,910    
Unrealized gain (loss) on securities   500 600    
Operating Segments | Medical Devices          
Segment Reporting Information [Line Items]          
Earnings before provision for taxes on income 4,373 3,044 7,286    
Identifiable Assets 53,372 49,578      
Additions to Property, Plant & Equipment 1,933 1,980 1,912    
Depreciation and Amortization 2,286 2,140 2,014    
Operating Segments | Medical Devices | AdvancedSterilizationProducts          
Segment Reporting Information [Line Items]          
Gain (loss) on divestiture     2,000    
Immunology | Pharmaceutical          
Segment Reporting Information [Line Items]          
Sales to Customers 16,750 15,055 13,950    
Immunology | Pharmaceutical | United States          
Segment Reporting Information [Line Items]          
Sales to Customers $ 10,843 $ 10,175 $ 9,641    
v3.22.0.1
Acquisitions and Divestitures - Narrative (Details)
$ / shares in Units, shares in Millions, SFr in Millions, $ in Millions, ¥ in Billions
 3 Months Ended 12 Months Ended
Jan. 28, 2022
USD ($)
Oct. 01, 2020
USD ($)
Apr. 01, 2019
USD ($)
Jan. 17, 2019
USD ($)
Jan. 17, 2019
JPY (¥)
Oct. 03, 2021
USD ($)
Jan. 03, 2021
USD ($)
$ / shares
Sep. 27, 2020
USD ($)
Mar. 29, 2020
USD ($)
Mar. 31, 2019
USD ($)
Jan. 02, 2022
USD ($)
shares
Jan. 02, 2022
CHF (SFr)
shares
Jan. 03, 2021
USD ($)
$ / shares
shares
Jan. 03, 2021
CHF (SFr)
shares
Dec. 29, 2019
USD ($)
Jan. 03, 2021
CHF (SFr)
Jan. 16, 2019
Business Acquisition [Line Items]                                  
Consideration transferred                         $ 7,300        
Liabilities assumed             $ 400           400   $ 1,400    
Goodwill (Notes 1 and 5)             36,393       $ 35,246   36,393   33,639    
Acquisitions, net of cash acquired                     60   7,323   5,810    
Other (income) expense, net                     (489)   (2,899)   (2,525)    
Contingent consideration liability             633       533   633        
Long-term debt             34,434       32,116   34,434        
In Process Research and Development                                  
Business Acquisition [Line Items]                                  
Impairment of intangible assets, excluding goodwill           $ 900   $ 100                  
2019 Acquisitions | In Process Research and Development                                  
Business Acquisition [Line Items]                                  
Purchase price over fair value of assets acquired                             6,800    
Auris Health                                  
Business Acquisition [Line Items]                                  
Liabilities assumed     $ 1,800                            
Intangible assets assumed     $ 3,000                            
Discount rate     9.50%                            
Goodwill (Notes 1 and 5)     $ 2,000                            
Acquisitions, net of cash acquired     3,400                            
Contingent consideration liability     2,350       $ 1,100           $ 1,100        
Marketable securities assumed     $ 200                            
Auris Health | In Process Research and Development                                  
Business Acquisition [Line Items]                                  
Impairment of intangible assets, excluding goodwill                     900            
Ci:z Holdings Co. Ltd.                                  
Business Acquisition [Line Items]                                  
Consideration transferred       $ 2,100 ¥ 230.0                        
Liabilities assumed                 $ 400                
Intangible assets assumed                 1,500                
Goodwill (Notes 1 and 5)                 1,200                
Foreign currency exchange rate, translation                                 109.06
Other (income) expense, net                   $ 300              
Weighted average useful life of acquired intangibles             15 years 3 months 18 days                    
Idorsia                                  
Business Acquisition [Line Items]                                  
Sale of stock, number of shares issued in transaction (in shares) | shares                         11.8 11.8      
Sale of stock, percentage of ownership before transaction                         8.30% 8.30%      
Proceeds from sale of equity interests                         $ 357 SFr 337.0      
Sale of stock (in USD per share) | $ / shares             $ 28.55           $ 28.55        
Convertible note, equity Interest (in shares) | shares                         38.7 38.7      
Momenta                                  
Business Acquisition [Line Items]                                  
Consideration transferred   $ 6,100                              
Liabilities assumed   $ 1,600                              
Discount rate   13.00%                              
Goodwill (Notes 1 and 5)   $ 1,200                              
Other assets assumed   500                              
Momenta | In Process Research and Development                                  
Business Acquisition [Line Items]                                  
Intangible assets assumed   $ 6,000                              
2020 Acquisitions | In Process Research and Development                                  
Business Acquisition [Line Items]                                  
Purchase price over fair value of assets acquired             $ 7,500           $ 7,500        
bermekimab                                  
Business Acquisition [Line Items]                                  
Consideration transferred                 800                
Intangible assets assumed                 $ 800                
Discount rate                 16.00%                
bermekimab | Subsequent Event                                  
Business Acquisition [Line Items]                                  
Impairment of intangible assets, excluding goodwill $ 600                                
Verb Surgical Inc.                                  
Business Acquisition [Line Items]                                  
Liabilities assumed                 $ 300                
Intangible assets assumed                 400                
Goodwill (Notes 1 and 5)                 200                
Other assets assumed                 200                
Equity method investments, fair value                 $ 400                
Maximum | Auris Health                                  
Business Acquisition [Line Items]                                  
Probability of success factor     66.00%                            
Maximum | Momenta                                  
Business Acquisition [Line Items]                                  
Probability of success factor   77.00%                              
Maximum | bermekimab                                  
Business Acquisition [Line Items]                                  
Probability of success factor                 60.00%                
Minimum | Auris Health                                  
Business Acquisition [Line Items]                                  
Probability of success factor     18.00%                            
Minimum | Momenta                                  
Business Acquisition [Line Items]                                  
Probability of success factor   20.00%                              
Minimum | bermekimab                                  
Business Acquisition [Line Items]                                  
Probability of success factor                 20.00%                
Convertible Debt | Idorsia                                  
Business Acquisition [Line Items]                                  
Long-term debt | SFr                               SFr 445.0  
Convertible debt, amount of loan converted                     $ 120 SFr 110.0          
Convertible Debt, number of equity instruments (in shares) | shares                     9.6 9.6          
AdvancedSterilizationProducts                                  
Business Acquisition [Line Items]                                  
Gain (loss) on divestiture                             2,000    
Evra and Doxil                                  
Business Acquisition [Line Items]                                  
Proceeds from divestiture of brands                     $ 600            
Discontinued Operations, Held-for-sale or Disposed of by Sale | AdvancedSterilizationProducts                                  
Business Acquisition [Line Items]                                  
Disposal group, including discontinued operation, consideration                             2,800    
Disposal group, including discontinued operation, cash                             2,700    
Disposal group, including discontinued operation, receivables retained                             $ 100    
v3.22.0.1
Legal Proceedings (Details)
$ in Millions
 1 Months Ended 12 Months Ended
Jan. 20, 2020
USD ($)
Oct. 31, 2021
USD ($)
Jun. 30, 2021
USD ($)
Jun. 28, 2020
USD ($)
Jan. 31, 2020
USD ($)
Oct. 31, 2019
USD ($)
Jul. 31, 2018
USD ($)
Dec. 29, 2019
USD ($)
Feb. 28, 2022
cases
Jan. 02, 2022
claimant
Sep. 30, 2021
cases
May 31, 2021
claimant
cases
Oct. 31, 2020
USD ($)
Apr. 30, 2015
claim
ASR                            
Legal Proceeding (Textuals)                            
Product liability contingency, number of claimants                   250        
Pinnacle Acetabular Cup System                            
Legal Proceeding (Textuals)                            
Product liability contingency, number of claimants                   5,300        
Pelvic Meshes                            
Legal Proceeding (Textuals)                            
Product liability contingency, number of claimants                   10,100        
Risperdal                            
Legal Proceeding (Textuals)                            
Product liability contingency, number of claimants                   8,800        
XARELTO                            
Legal Proceeding (Textuals)                            
Product liability contingency, number of claimants                   5,500        
Talc                            
Legal Proceeding (Textuals)                            
Product liability contingency, number of claimants                   40,400        
Invokana                            
Legal Proceeding (Textuals)                            
Product liability contingency, number of claimants                   100        
Physiomesh                            
Legal Proceeding (Textuals)                            
Product liability contingency, number of claimants                   4,700        
Opioid                            
Legal Proceeding (Textuals)                            
Product liability contingency, number of claimants                   3,400        
Contact Lenses                            
Legal Proceeding (Textuals)                            
Number of pending claims | claim                           30
Settled Litigation | Opioid                            
Legal Proceeding (Textuals)                            
Damages awarded | $   $ 5,000.0 $ 5,000.0                      
Damages awarded, including settlement for related issues, reimbursement for legal fees, and removal from related claims | $   297.0 263.0                      
Judicial Ruling                            
Legal Proceeding (Textuals)                            
Damages awarded | $         $ 6.8 $ 8,000.0                
Pending Litigation                            
Legal Proceeding (Textuals)                            
Loss contingency, estimate of possible loss | $           $ 4,000.0             $ 5,000.0  
Loss contingency, estimate of additional possible loss | $                         $ 1,000.0  
Pending Litigation | Physiomesh                            
Legal Proceeding (Textuals)                            
Number of pending claims | cases                       3,600    
Product liability contingency, number of claimants                       4,300    
Number of claims within settlement agreement | cases                     3,729      
Pending Litigation | Physiomesh | Subsequent Event                            
Legal Proceeding (Textuals)                            
Number of pending claims | cases                 90          
Pending Litigation | Opioid | State Level Jurisdiction                            
Legal Proceeding (Textuals)                            
Product liability contingency, number of claimants                   380        
Pending Litigation | Opioid | Federal Level Jurisdiction                            
Legal Proceeding (Textuals)                            
Product liability contingency, number of claimants                   3,000        
DePuy ASR U.S. | Settled Litigation                            
Legal Proceeding (Textuals)                            
Number of patients in settlement                   10,000        
Baby Powder | Talc                            
Legal Proceeding (Textuals)                            
Reserve established | $   $ 2,000.0                        
Baby Powder | Judicial Ruling | Damages from Product Defects                            
Legal Proceeding (Textuals)                            
Litigation contingency | $       $ 2,100.0     $ 4,700.0              
Payments for legal settlements | $     $ 2,500.0                      
Oklahoma Attorney General vs. Johnson & Johnson and JPI | Settled Litigation                            
Legal Proceeding (Textuals)                            
Damages awarded | $               $ 465.0            
Surgical Mesh Products Marketing | Judicial Ruling                            
Legal Proceeding (Textuals)                            
Damages awarded | $ $ 344.0                          
v3.22.0.1
Restructuring - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Restructuring Cost and Reserve [Line Items]      
Restructuring charges $ 252 $ 247 $ 266
Supply Chain      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges 473    
Restructuring costs incurred since announced 1,800    
Supply Chain | Restructuring Charges      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges 300    
Supply Chain | Cost of products sold      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges 100    
Supply Chain | Other Income Expense Net      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges 100    
Supply Chain | Minimum      
Restructuring Cost and Reserve [Line Items]      
Restructuring and related cost, expected future savings 600    
Pre-tax restructuring charges $ 2,100    
Restructuring and related cost, duration of restructuring plan 4 years    
Supply Chain | Maximum      
Restructuring Cost and Reserve [Line Items]      
Restructuring and related cost, expected future savings $ 800    
Pre-tax restructuring charges $ 2,300    
Restructuring and related cost, duration of restructuring plan 5 years    
v3.22.0.1
Restructuring - Summary of Severance Charges and Associated Spending (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2022
Jan. 03, 2021
Dec. 29, 2019
Restructuring Reserve [Roll Forward]      
Restructuring charges $ 252 $ 247 $ 266
Supply Chain      
Restructuring Reserve [Roll Forward]      
Reserve balance beginning 144 180  
Activity during the period   (36)  
Restructuring charges 473    
Cash settlements (427)    
Settled non cash (53)    
Reserve balance ending   144 180
Supply Chain | Supply Chain      
Restructuring Reserve [Roll Forward]      
Reserve balance ending 137    
Severance | Supply Chain      
Restructuring Reserve [Roll Forward]      
Reserve balance beginning 135 164  
Activity during the period   (29)  
Restructuring charges 0    
Cash settlements (23)    
Settled non cash 0    
Reserve balance ending   135 164
Severance | Supply Chain | Supply Chain      
Restructuring Reserve [Roll Forward]      
Reserve balance ending 112    
Asset Write-offs/Sales | Supply Chain      
Restructuring Reserve [Roll Forward]      
Reserve balance beginning 0 0  
Activity during the period   0  
Restructuring charges 53    
Cash settlements    
Settled non cash (53)    
Reserve balance ending   0 0
Asset Write-offs/Sales | Supply Chain | Supply Chain      
Restructuring Reserve [Roll Forward]      
Reserve balance ending 0    
Other | Supply Chain      
Restructuring Reserve [Roll Forward]      
Reserve balance beginning 9 16  
Activity during the period   (7)  
Restructuring charges 420    
Cash settlements (404)    
Settled non cash    
Reserve balance ending   $ 9 $ 16
Other | Supply Chain | Supply Chain      
Restructuring Reserve [Roll Forward]      
Reserve balance ending $ 25