Fair Value Measurements and Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following tables present information about the company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2018 and December 31, 2017:



	March 31,		Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In millions)	2018		(Level 1)		(Level 2)		(Level 3)

Assets
Cash equivalents	$	36	$	36	$	—	$	—
Bank time deposits	2		2		—		—
Investments in mutual funds and other similar instruments	13		13		—		—
Warrants	2		—		2		—
Insurance contracts	115		—		115		—
Derivative contracts	7		—		7		—

Total Assets	$	175	$	51	$	124	$	—

Liabilities
Derivative contracts	$	165	$	—	$	165	$	—
Contingent consideration	41		—		—		41

Total Liabilities	$	206	$	—	$	165	$	41



	December 31,		Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In millions)	2017		(Level 1)		(Level 2)		(Level 3)

Assets
Cash equivalents	$	22	$	22	$	—	$	—
Bank time deposits	2		2		—		—
Investments in mutual funds and other similar instruments	13		13		—		—
Warrants	2		—		2		—
Insurance contracts	116		—		116		—
Derivative contracts	10		—		10		—

Total Assets	$	165	$	37	$	128	$	—

Liabilities
Derivative contracts	$	139	$	—	$	139	$	—
Contingent consideration	35		—		—		35

Total Liabilities	$	174	$	—	$	139	$	35

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]



	Fair Value – Assets				Fair Value – Liabilities
	March 31,		December 31,		March 31,		December 31,
(In millions)	2018		2017		2018		2017

Derivatives Designated as Hedging Instruments
Interest rate swaps (a)	$	—	$	—	$	162	$	124
Derivatives Not Designated as Hedging Instruments
Currency exchange contracts (b)	7		10		3		15

Total Derivatives	$	7	$	10	$	165	$	139


(a)	The fair value of the interest rate swaps is included in the consolidated balance sheet under the caption other long-term liabilities.


(b)	The fair value of the currency exchange contracts is included in the consolidated balance sheet under the captions other current assets or other accrued expenses.

The following amounts related to cumulative basis adjustments for fair value hedges were included in the consolidated balance sheet under the caption long-term obligations:



	Carrying Amount of the Hedged Liability				Cumulative Amount of Fair Value Hedging Adjustment - Increase (Decrease) Included in Carrying Amount of Liability (c)
	March 31,		December 31,		March 31,			December 31,
(In millions)	2018		2017		2018			2017

Long-term Obligations	$	3,261	$	3,309	$	(120	)	$	(70	)


(c)	Includes increases in the carrying amount of $40 million and $43 million at March 31, 2018 and December 31, 2017, respectively, on discontinued hedging relationships

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]



	Gain (Loss) Recognized
	Three Months Ended
	March 31,			April 1,
(In millions)	2018			2017

Fair Value Hedging Relationships
Interest rate swaps
Hedged long-term obligations - included in other expense, net	$	(38	)	$	(6	)
Derivatives designated as hedging instruments - included in other expense, net	42			3
Derivatives Designated as Cash Flow Hedges
Interest rate swaps
Amount reclassified from accumulated other comprehensive items to other expense, net	(3		)	(3		)
Derivatives Designated as Net Investment Hedges
Foreign currency-denominated debt
Included in currency translation adjustment within other comprehensive items	(200		)	(46		)
Derivatives Not Designated as Hedging Instruments
Currency exchange contracts
Included in cost of revenues	(2		)	(1		)
Included in other expense, net	(8		)	19

Fair Value, by Balance Sheet Grouping [Table Text Block]

The carrying value and fair value of the company’s notes receivable and debt obligations are as follows:



	March 31, 2018				December 31, 2017
	Carrying		Fair		Carrying		Fair
(In millions)	Value		Value		Value		Value

Notes Receivable	$	94	$	99	$	89	$	93

Debt Obligations:
Senior notes	$	19,742	$	20,053	$	20,024	$	20,639
Commercial paper	1,171		1,171		960		960
Other	23		23		24		24

	$	20,936	$	21,247	$	21,008	$	21,623

The fair value of debt obligations was determined based on quoted market prices and on borrowing rates available to the company at the respective period ends which represent level 2 measurements.

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]

The carrying value and fair value of the company’s notes receivable and debt obligations are as follows:



	March 31, 2018				December 31, 2017
	Carrying		Fair		Carrying		Fair
(In millions)	Value		Value		Value		Value

Notes Receivable	$	94	$	99	$	89	$	93

Debt Obligations:
Senior notes	$	19,742	$	20,053	$	20,024	$	20,639
Commercial paper	1,171		1,171		960		960
Other	23		23		24		24

	$	20,936	$	21,247	$	21,008	$	21,623

The fair value of debt obligations was determined based on quoted market prices and on borrowing rates available to the company at the respective period ends which represent level 2 measurements.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following table provides a rollforward of the fair value, as determined by level 3 inputs, of the contingent consideration.



	Three Months Ended
	March 31,			April 1,
(In millions)	2018			2017

Contingent Consideration
Beginning Balance	$	35		$	6
Acquisitions	11			9
Payments	(5		)	—
Change in fair value included in earnings	—			25

Ending Balance	$	41		$	40