Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of classification and fair value of derivative instruments

The following table summarizes the classification and fair values of derivative instruments in our Condensed Consolidated Balance Sheets (in millions):

	September 30, 2019
	Asset Derivatives			Liability Derivatives
	Classification	Fair Value		Classification	Fair Value
Derivatives designated as hedges:
Foreign currency exchange contracts	Other current assets	$	75	Other accrued liabilities	$	(1	)
Foreign currency exchange contracts	Other long-term assets	5		Other long-term obligations	—
Total derivatives designated as hedges		80			(1		)
Derivatives not designated as hedges:
Foreign currency exchange contracts	Other current assets	—		Other accrued liabilities	—
Total derivatives not designated as hedges		—			—
Total derivatives		$	80		$	(1	)

	December 31, 2018
	Asset Derivatives			Liability Derivatives
	Classification	Fair Value		Classification	Fair Value
Derivatives designated as hedges:
Foreign currency exchange contracts	Other current assets	$	73	Other accrued liabilities	$	(1	)
Foreign currency exchange contracts	Other long-term assets	5		Other long-term obligations	—
Total derivatives designated as hedges		78			(1		)
Derivatives not designated as hedges:
Foreign currency exchange contracts	Other current assets	—		Other accrued liabilities	—
Total derivatives not designated as hedges		—			—
Total derivatives		$	78		$	(1	)

Summary of effect of foreign currency exchange contracts

The following table summarizes the effect of our foreign currency exchange contracts on our Condensed Consolidated Financial Statements (in millions):

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2019		2018			2019		2018
Derivatives designated as hedges:
Gains (losses) recognized in AOCI	$	69	$	(6	)	$	98	$	52
Gains (losses) reclassified from AOCI into product sales	31		(8		)	96		(101		)
Derivatives not designated as hedges:
Gains recognized in Other income (expense), net	$	40	$	15		$	29	$	11

Summary of potential effect of offsetting derivatives

The following table summarizes the potential effect of offsetting our foreign currency exchange contracts on our Condensed Consolidated Balance Sheets (in millions):

									Gross Amounts Not Offset on our Condensed Consolidated Balance Sheets
Description	Gross Amounts  of Recognized Assets/Liabilities			Gross Amounts  Offset on our Condensed Consolidated Balance Sheets		Amounts of Assets/Liabilities Presented  on our Condensed Consolidated Balance Sheets			Derivative Financial Instruments			Cash Collateral Received/ Pledged		Net Amount  (Legal Offset)
As of September 30, 2019
Derivative assets	$	80		$	—	$	80		$	(1	)	$	—	$	79
Derivative liabilities	(1		)	—		(1		)	1			—		—
As of December 31, 2018
Derivative assets	$	78		$	—	$	78		$	(1	)	$	—	$	77
Derivative liabilities	(1		)	—		(1		)	1			—		—