Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2018

Derivative [Line Items]

Schedule of Derivative Instruments [Table Text Block]

The following table presents the contractual amounts of our derivative instruments outstanding:

(in millions)	FASB ASC Topic 815 Designation	As of
		March 31, 2018		December 31, 2017
Forward currency contracts	Cash flow hedge	$	3,595	$	3,252
Forward currency contracts	Non-designated	2,565		2,671
Total Notional Outstanding		$	6,161	$	5,923

Gains (losses) recognized in earnings for derivatives designed as hedging instruments

As of March 31, 2018, pre-tax net gains or losses for our derivative instruments designated, or previously designated, as currency hedge contracts under FASB ASC Topic 815 that may be reclassified to earnings within the next twelve months are presented below:

(in millions) Designated Derivative Instrument	FASB ASC Topic 815 Designation	Location in Unaudited Condensed Consolidated Statements of Operations	Total Amounts Presented in Unaudited Condensed Consolidated Statements of Operations			Amount of Pre-Tax Gain (Loss) that may be Reclassified to Earnings
Interest rate derivative contracts	Fair value hedge	Interest expense	$	(61	)	$	12
Interest rate derivative contracts	Cash flow hedge	Interest expense	(61		)	1
Forward currency contracts	Cash flow hedge	Cost of products sold	672			(55		)

The following presents the effect of our derivative instruments designated as cash flow hedges under FASB ASC Topic 815 on our accompanying unaudited condensed consolidated statements of operations:

(in millions)	Location in Unaudited Condensed Consolidated Statements of Operations	Total Amounts Presented in Unaudited Condensed Consolidated Statements of Operations		Effective Amount Recognized in OCI								Effective Amount Reclassified from AOCI into Earnings
				Pre-Tax Gain (Loss)			Tax Benefit (Expense)		Gain (Loss) Net of Tax			Pre-Tax (Gain) Loss			Tax (Benefit) Expense			(Gain) Loss Net of Tax
Three Months Ended March 31, 2018
Forward currency contracts	Cost of products sold	$	672	$	(118	)	$	27	$	(91	)	$	15		$	(3	)	$	12
				$	(118	)	$	27	$	(91	)	$	15		$	(3	)	$	12
Three Months Ended March 31, 2017
Forward currency contracts	Cost of products sold	$	650	$	(58	)	$	21	$	(37	)	$	(28	)	$	10		$	(18	)
				$	(58	)	$	21	$	(37	)	$	(28	)	$	10		$	(18	)

Net foreign currency gain (loss) [Table Text Block]

Net gains and losses on currency hedge contracts not designated as hedging instruments offset by net gains and losses from currency transaction exposures are presented below:

	Location in Unaudited Condensed Consolidated Statements of Operations
		Three Months Ended March 31,
(in millions)		2018			2017
Net gain (loss) on currency hedge contracts	Other, net	$	(23	)	$	(17	)
Net gain (loss) on currency transaction exposures	Other, net	16			17
Net currency exchange gain (loss)		$	(8	)	$	—

Classification of derivative assets and liabilities within level 2

The following are the balances of our derivative assets and liabilities:

	Location in Unaudited Condensed Consolidated Balance Sheets (1)	As of
		March 31,		December 31,
(in millions)		2018		2017
Derivative Assets:
Designated Derivative Instruments
Forward currency contracts	Other current assets	$	3	$	7
Forward currency contracts	Other long-term assets	15		57
		17		64
Non-Designated Derivative Instruments
Forward currency contracts	Other current assets	15		18
Total Derivative Assets		$	32	$	82
Derivative Liabilities:
Designated Derivative Instruments
Forward currency contracts	Other current liabilities	$	54	$	37
Forward currency contracts	Other long-term liabilities	69		33
		123		69
Non-Designated Derivative Instruments
Forward currency contracts	Other current liabilities	31		21
Total Derivative Liabilities		$	154	$	90

(1) We classify derivative assets and liabilities as current when the remaining term of the derivative contract is one year or less.

Assets and liabilities measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis consist of the following:

	As of
	March 31, 2018								December 31, 2017
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Money market and government funds	$	42	$	—	$	—	$	42	$	21	$	—	$	—	$	21
Publicly-held securities	12		—		—		12		15		—		—		15
Forward currency contracts	—		32		—		32		—		82		—		82
	$	54	$	32	$	—	$	86	$	36	$	82	$	—	$	118
Liabilities
Forward currency contracts	$	—	$	154	$	—	$	154	$	—	$	90	$	—	$	90
Accrued contingent consideration	—		—		152		152		—		—		169		169
	$	—	$	154	$	152	$	306	$	—	$	90	$	169	$	259