Financial Instruments, Derivatives and Fair Value Measures (Tables)

12 Months Ended

Dec. 31, 2015

Financial Instruments, Derivatives and Fair Value Measures

Summary of the amounts and location of certain derivative financial instruments

	Fair Value — Assets					Fair Value — Liabilities
	2015		2014		Balance Sheet Caption	2015		2014		Balance Sheet Caption
					(in millions)
Interest rate swaps designated as fair value hedges	$	116	$	101	Deferred income taxes and other assets	$	—	$	—	Post-employment obligations and other long-term liabilities
Foreign currency forward exchange contracts —
Hedging instruments		64		107	Other prepaid expenses and receivables		18		—	Other accrued liabilities
Others not designated as hedges		115		150	Other prepaid expenses and receivables		84		130	Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary		—		—	n/a		439		445	Short-term borrowings
	$	295	$	358		$	541	$	575

Schedule of derivatives gain (loss) in OCI and earnings

	Gain (loss) Recognized in Other Comprehensive Income (loss)						Income (expense) and Gain (loss) Reclassified into Income
	2015		2014		2013		2015		2014		2013			Income Statement Caption
	(in millions)
Foreign currency forward exchange contracts designated as cash flow hedges	$	91	$	105	$	35	$	124	$	11	$	44		Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary		6		60		110		—		—		—		n/a
Interest rate swaps designated as fair value hedges		n/a		n/a		n/a		15		14		(98	)	Interest expense
Foreign currency forward exchange contracts not designated as hedges		n/a		n/a		n/a		77		122		84		Net foreign exchange (gain) loss

Schedule of carrying values and fair values of certain financial instruments

	2015						2014
	Carrying Value			Fair Value			Carrying Value			Fair Value
	(in millions)
Long-term Investment Securities:
Equity securities	$	4,014		$	4,014		$	212		$	212
Other		27			30			17			17
Total Long-term Debt		(5,874	)		(6,337	)		(3,448	)		(4,098	)
Foreign Currency Forward Exchange Contracts:
Receivable position		179			179			263			263
(Payable) position		(102	)		(102	)		(135	)		(135	)
Interest Rate Hedge Contracts:
Receivable position		116			116			101			101

Schedule of assets and liabilities measured at fair value on a recurring basis

			Basis of Fair Value Measurement
	Outstanding Balances		Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(in millions)
December 31, 2015:
Equity securities	$	3,780	$	3,780	$	—	$	—
Interest rate swap financial instruments		116		—		116		—
Foreign currency forward exchange contracts		179		—		179		—
Total Assets	$	4,075	$	3,780	$	295	$	—
Fair value of hedged long-term debt	$	4,135	$	—	$	4,135	$	—
Foreign currency forward exchange contracts		102		—		102		—
Contingent consideration related to business combinations		173		—		—		173
Total Liabilities	$	4,410	$	—	$	4,237	$	173
December 31, 2014:
Equity securities	$	9	$	9	$	—	$	—
Interest rate swap financial instruments		101		—		101		—
Foreign currency forward exchange contracts		263		—		263		—
Total Assets	$	373	$	9	$	364	$	—
Fair value of hedged long-term debt	$	1,637	$	—	$	1,637	$	—
Foreign currency forward exchange contracts		135		—		135		—
Contingent consideration related to business combinations		243		—		—		243
Total Liabilities	$	2,015	$	—	$	1,772	$	243