Acquisitions and Strategic Investments (Tables)

12 Months Ended

Dec. 31, 2015

Acquisitions (Tables) [Abstract]

Business Combination, Components of Purchase Price [Table Text Block]

The components of the aggregate preliminary purchase prices are as follows (in millions):

Cash, net of cash acquired	$	1,734
Fair value of contingent consideration	63
	$	1,797

The components of the aggregate purchase price for the Bayer and IoGyn acquisitions are as follows (in millions):

Cash, net of cash acquired	$	479
Fair value of prior interests	31
	$	510

Business Combination, Purchase Price Allocation Schedule [Table Text Block]

he following summarizes the aggregate purchase price allocation for Bayer and IoGyn as of December 31, 2014:

Goodwill	$	210
Amortizable intangible assets	263
Inventory	23
Property, Plant and Equipment	17
Prepaid Transaction Service Agreement	5
Other net assets	(1		)
Deferred income taxes	(7		)
	$	510

The following summarizes the aggregate purchase price allocation for the Bard EP acquisition (in millions):

Goodwill	$	140
Amortizable intangible assets	112
Other net assets	19
Deferred income taxes	3
	$	274

The following summarizes the aggregate preliminary purchase price allocation for the 2015 acquisitions as of December 31, 2015 (in millions):

Goodwill	$	573
Amortizable intangible assets	1,073
Indefinite-lived intangible assets	7
Inventory	103
Property, Plant and Equipment	43
Other net assets	43
Deferred income taxes	(45		)
	$	1,797

Description of unobservable inputs used in Level 3 fair value measurements [Table Text Block]

The recurring Level 3 fair value measurements of our contingent consideration liability include the following significant unobservable inputs:

Contingent Consideration Liability	Fair Value as of December 31, 2015	Valuation Technique	Unobservable Input	Range
R&D and Commercialization-based Milestone	$19 million	Discounted Cash Flow	Discount Rate	2% - 3.5%
			Probability of Payment	32% - 95%
			Projected Year of Payment	2017 - 2021
Revenue-based Payments	$125 million	Discounted Cash Flow	Discount Rate	11% - 15%
			Projected Year of Payment	2016 - 2022
	$102 million	Monte Carlo	Revenue Volatility	15%
			Risk Free Rate	LIBOR Term Structure
			Projected Year of Payment	2016 - 2018

The nonrecurring Level 3 fair value measurements of our intangible asset impairment analysis included the following significant unobservable inputs:

Intangible Asset	Valuation Date	Fair Value	Valuation Technique	Unobservable Input	Rate
Technology-related (amortizable)	September 30, 2015	$8 million	Income Approach -Excess Earnings Method	Discount Rate	10%
In-Process R&D	June 30, 2015	$6 million	Income Approach - Excess Earnings Method	Discount Rate	16.5 - 20%
In-Process R&D	September 30, 2014	$16 million	Income Approach - Excess Earnings Method	Discount Rate	16.5 - 20%
In-Process R&D	June 30, 2014	$83 million	Income Approach - Excess Earnings Method	Discount Rate	16.5 - 20%
Technology-related (amortizable)	June 30, 2014	$8 million	Income Approach - Excess Earnings Method	Discount Rate	15%
In-Process R&D	March 31, 2014	$6 million	Income Approach - Excess Earnings Method	Discount Rate	20%
Technology-related (amortizable)	March 31, 2014	$64 million	Income Approach - Excess Earnings Method	Discount Rate	15%
In-Process R&D	June 30, 2013	$178 million	Income Approach - Excess Earnings Method	Discount Rate	16.5%

Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block]

Changes in our contingent consideration liability were as follows (in millions):

Balance as of December 31, 2013	$	501
Amounts recorded related to new acquisitions	3
Other amounts recorded related to prior acquisitions	(8		)
Fair value adjustment	(85		)
Contingent payments related to prior period acquisition	(137		)
Balance as of December 31, 2014	$	274
Amounts recorded related to new acquisitions	63
Other amounts recorded related to prior acquisitions	(1		)
Fair value adjustment	123
Contingent payments related to prior period acquisition	(213		)
Balance as of December 31, 2015	$	246

Business Acquisition, Purchase Price Allocation, Intangible Assets, Description

We allocated a portion of the purchase price to specific intangible asset categories as follows:

	Amount Assigned (in millions)		Weighted Average Amortization Period (in years)	Range of Risk- Adjusted Discount Rates used in Purchase Price Allocation
Amortizable intangible assets:
Technology-related	$	233	10 - 14	14 - 18 %
Customer Relationships	29		10	18%
Other intangible assets	1		2	14%
	$	263

We allocated a portion of the preliminary purchase price to specific intangible asset categories as follows:

	Amount Assigned (in millions)		Weighted Average Amortization Period (in years)	Range of Risk- Adjusted Discount Rates used in Purchase Price Allocation
Amortizable intangible assets:
Technology-related	$	431	11-13	13.5% - 23%
Customer relationships	624		12-13	13.5% - 15%
Other intangible assets	18		13	13.5%
Indefinite-lived intangible assets:
In-process research & development	$	7	N/A	17%
	$	1,080

We allocated a portion of the purchase price to specific intangible asset categories as of the acquisition date as follows:

	Amount Assigned (in millions)		Weighted Average Amortization Period (in years)	Range of Risk- Adjusted Discount Rates used in Purchase Price Allocation
Amortizable intangible assets:
Technology-related	$	82	10	11.5%
Customer relationships	30		7	11.5%
	$	112