Financial Instruments, Derivatives and Fair Value Measures (Tables)

3 Months Ended

Mar. 31, 2017

Financial Instruments, Derivatives and Fair Value Measures

Summary of the amounts and location of certain derivative financial instruments

	Fair Value - Assets					Fair Value - Liabilities
(in millions)	March 31, 2017		Dec. 31, 2016		Balance Sheet Caption	March 31, 2017		Dec. 31, 2016		Balance Sheet Caption
Interest rate swaps designated as fair value hedges	$	—	$	8	Deferred income taxes and other assets	$	92	$	74	Post-employment obligations, deferred income taxes and other long-term liabilities
Foreign currency forward exchange contracts:
Hedging instruments	45		99		Prepaid expenses and other receivables	51		15		Other accrued liabilities
Others not designated as hedges	196		177		Prepaid expenses and other receivables	57		67		Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary	—		—		n/a	—		454		Short-term borrowings
	$	241	$	284		$	200	$	610

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
(in millions)	2017			2016			2017			2016		Income Statement Caption
Foreign currency forward exchange contracts designated as cash flow hedges	$	(91	)	$	(58	)	$	(5	)	$	31	Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary	(25		)	(32		)	—			—		n/a
Interest rate swaps designated as fair value hedges	n/a			n/a			(26		)	101		Interest expense

Schedule of carrying values and fair values of certain financial instruments

	March 31, 2017						December 31, 2016
(in millions)	Carrying Value			Fair Value			Carrying Value			Fair Value
Investment Securities:
Equity securities	$	1,702		$	1,702		$	2,906		$	2,906
Other	54			55			41			42
Total Long-term Debt	(23,767		)	(24,349		)	(20,684		)	(21,147		)
Foreign Currency Forward Exchange Contracts:
Receivable position	241			241			276			276
(Payable) position	(108		)	(108		)	(82		)	(82		)
Interest Rate Hedge Contracts:
Receivable position	—			—			8			8
(Payable) position	(92		)	(92		)	(74		)	(74		)

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

			Basis of Fair Value Measurement
(in millions)	Outstanding Balances		Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs
March 31, 2017:
Equity securities	$	1,411	$	1,411	$	—	$	—
Interest rate swap derivative financial instruments	—		—		—		—
Foreign currency forward exchange contracts	241		—		241		—
Total Assets	$	1,652	$	1,411	$	241	$	—
Fair value of hedged long-term debt	$	5,395	$	—	$	5,395	$	—
Interest rate swap derivative financial instruments	92		—		92		—
Foreign currency forward exchange contracts	108		—		108		—
Contingent consideration related to business combinations	203		—		—		203
Total Liabilities	$	5,798	$	—	$	5,595	$	203
December 31, 2016:
Equity securities	$	2,676	$	2,676	$	—	$	—
Interest rate swap derivative financial instruments	8		—		8		—
Foreign currency forward exchange contracts	276		—		276		—
Total Assets	$	2,960	$	2,676	$	284	$	—
Fair value of hedged long-term debt	$	5,413	$	—	$	5,413	$	—
Interest rate swap derivative financial instruments	74		—		74		—
Foreign currency forward exchange contracts	82		—		82		—
Contingent consideration related to business combinations	136		—		—		136
Total Liabilities	$	5,705	$	—	$	5,569	$	136