Financial Instruments and Related Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Activity Relating to Securitization Arrangement

The following is a summary of the activity relating to the securitization arrangement.

as of and for the years ended December 31 (in millions)	2013			2012			2011
Sold receivables at beginning of year	$	157		$	160		$	157
Proceeds from sales of receivables		506			630			615
Cash collections (remitted to the owners of the receivables)		(519	)		(624	)		(622	)
Effect of currency exchange rate changes		(30	)		(9	)		10
Sold receivables at end of year	$	114		$	157		$	160

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables summarize the bases used to measure financial assets and liabilities that are carried at fair value on a recurring basis in the consolidated balance sheets.

		Basis of fair value measurement
(in millions)	Balance at December 31, 2013	Quoted prices in active markets for identical assets (Level 1)	Significant other observable inputs (Level 2)	Significant unobservable inputs (Level 3)
Assets
Foreign currency hedges	$  37	$  —	$  37	$  —
Interest rate hedges	35	—	35	—
Available-for-sale securities
Equity securities	102	102	—	—
Foreign government debt securities	18	—	18	—
Total assets	$192	$102	$  90	$  —
Liabilities
Foreign currency hedges	$    8	$  —	$8	$  —
Interest rate hedges	14	—	14	—
Contingent payments related to acquisitions and investments	340	—	—	340
Total liabilities	$362	$  —	$  22	$340

		Basis of fair value measurement
(in millions)	Balance at December 31, 2012	Quoted prices in active markets for identical assets (Level 1)	Significant other observable inputs (Level 2)	Significant unobservable inputs (Level 3)
Assets
Foreign currency hedges	$  75	$  —	$  75	$  —
Interest rate hedges	67	—	67	—
Available-for-sale securities
Equity securities	15	15	—	—
Preferred Stock	51	—	—	51
Foreign government debt securities	16	—	16	—
Total assets	$224	$  15	$158	$  51
Liabilities
Foreign currency hedges	$  16	$  —	$  16	$  —
Interest rate hedges	21	—	21	—
Contingent payments related to acquisitions and investments	86	—	—	86
Total liabilities	$123	$  —	$  37	$  86

Reconciliation of Fair Value Measurements that Use Significant Unobservable Inputs

The following table is a reconciliation of the fair value measurements that use significant unobservable inputs (Level 3), which consist of contingent payments related to acquisitions and preferred stock.

(in millions)	Contingent payments			Preferred stock
Fair value as of December 31, 2011	$	234		$	—
Purchases		—			50
Payments		(40	)		—
Gains recognized in earnings		(108	)		—
CTA		—			1
Fair value as of December 31, 2012		86			51
Purchases		269			—
Payments		(2	)		—
Net gains recognized in earnings		(17	)		—
CTA		4			—
Conversion to a publicly traded equity security		—			(51	)
Fair value as of December 31, 2013	$	340		$	—

Book Values and Fair Values of Financial Instruments

the following table provides the values recognized on the consolidated balance sheets and the approximate fair values.

	Book values				Approximate fair values
as of December 31 (in millions)	2013		2012		2013		2012
Assets
Long-term insurance receivables	$	2	$	2	$	2	$	2
Investments		53		46		53		49
Liabilities
Short-term debt		181		27		181		27
Current maturities of long-term debt and lease obligations		859		323		862		324
Long-term debt and lease obligations		8,126		5,580		8,298		6,201
Long-term litigation liabilities		72		32		70		31

Summarization of Bases Used to Measure Fair Value of Financial Instruments

The following tables summarize the bases used to measure the approximate fair value of the financial instruments as of December 31, 2013 and 2012.

			Basis of fair value measurement
(in millions)	Balance as of December 31, 2013		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets
Long-term insurance receivables	$	2	$	—	$	—	$	2
Investments		53		—		17		36
Total assets	$	55	$	—	$	17	$	38
Liabilities
Short-term debt	$	181	$	—	$	181	$	—
Current maturities of long-term debt and lease obligations		862		—		862		—
Long-term debt and lease obligations		8,298		—		8,298		—
Long-term litigation liabilities		70		—		—		70
Total liabilities	$	9,411	$	—	$	9,341	$	70

			Basis of fair value measurement
(in millions)	Balance as of December 31, 2012		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets
Long-term insurance receivables	$	2	$	—	$	—	$	2
Investments		49		—		19		30
Total assets	$	51	$	—	$	19	$	32
Liabilities
Short-term debt	$	27	$	—	$	27	$	—
Current maturities of long-term debt and lease obligations		324		—		324		—
Long-term debt and lease obligations		6,201		—		6,201		—
Long-term litigation liabilities		31		—		—		31
Total liabilities	$	6,583	$	—	$	6,552	$	31