Fair value measurements (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

Fair value, liabilities measured on recurring basis, unobservable input reconciliation

The following table provides a rollforward of our contingent consideration liabilities, which are recorded as part of other accrued liabilities and other long-term obligations in our Consolidated Balance Sheets (in millions):



	Year Ended December 31,
	2014			2013
Balance, beginning of period	$	264		$	205
Milestone payments - Calistoga	(175		)	—
Net changes in valuation	32			59
Addition from consolidation of variable interest entity	12			—
Balance, end of period	$	133		$	264

Schedule of fair value, assets and liabilities measured on recurring basis

The following table summarizes, for assets or liabilities recorded at fair value, the respective fair value and the classification by level of input within the fair value hierarchy (in millions):



	December 31, 2014								December 31, 2013
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	7,926	$	—	$	—	$	7,926	$	1,491	$	—	$	—	$	1,491
Corporate debt securities	—		938		—		938		—		220		—		220
U.S. treasury securities	363		—		—		363		86		—		—		86
Residential mortgage and asset-backed securities	—		269		—		269		—		47		—		47
U.S. government agencies securities	—		113		—		113		—		93		—		93
Municipal debt securities	—		16		—		16		—		12		—		12
Foreign currency derivative contracts	—		349		—		349		—		14		—		14
Deferred compensation plan ⁽¹⁾	54		—		—		54		44		—		—		44
	$	8,343	$	1,685	$	—	$	10,028	$	1,621	$	386	$	—	$	2,007

Liabilities:
Contingent consideration	$	—	$	—	$	133	$	133	$	—	$	—	$	264	$	264
Deferred compensation plan ⁽¹⁾	54		—		—		54		44		—		—		44
Foreign currency derivative contracts	—		—		—		—		—		99		—		99
	$	54	$	—	$	133	$	187	$	44	$	99	$	264	$	407

Schedule of carrying values and estimated fair values of debt instruments

The fair values of our convertible senior notes and senior unsecured notes were determined using Level 2 inputs based on their quoted market values. The following table summarizes the carrying values and fair values of the convertible senior notes and senior unsecured notes (in millions):



		December 31, 2014				December 31, 2013
Type of Borrowing	Description	Carrying Value		Fair Value		Carrying Value		Fair Value
Convertible Senior	May 2014 Notes	$	—	$	—	$	234	$	784
Convertible Senior	May 2016 Notes	483		2,097		1,113		3,872
Senior Unsecured	April 2021 Notes	995		1,108		994		1,075
Senior Unsecured	December 2014 Notes	—		—		750		763
Senior Unsecured	December 2016 Notes	700		727		699		741
Senior Unsecured	December 2021 Notes	1,248		1,377		1,248		1,337
Senior Unsecured	December 2041 Notes	998		1,229		998		1,119
Senior Unsecured	April 2019 Notes	499		500		—		—
Senior Unsecured	April 2024 Notes	1,747		1,836		—		—
Senior Unsecured	April 2044 Notes	1,747		1,954		—		—
Senior Unsecured	February 2020 Notes	499		504		—		—
Senior Unsecured	February 2025 Notes	1,748		1,797		—		—
Senior Unsecured	February 2045 Notes	1,740		1,872		—		—

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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