Financial Instruments, Derivatives and Fair Value Measures (Tables)

12 Months Ended

Dec. 31, 2019

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)	2019		2018		Balance Sheet Caption	2019		2018		Balance Sheet Caption
Interest rate swaps designated as fair value hedges	$	48	$	—	Deferred income taxes and other assets	$	—	$	100	Post-employment obligations and other long-term liabilities
Foreign currency forward exchange contracts:
Hedging instruments		110		81	Other prepaid expenses and receivables		56		44	Other accrued liabilities
Others not designated as hedges		38		33	Other prepaid expenses and receivables		33		51	Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary		—		—	n/a		546		—	Long-term debt
	$	196	$	114		$	635	$	195

Schedule of derivatives gain (loss) in OCI and earnings

	Gain (loss) Recognized in						Income (expense) and
	Other Comprehensive						Gain (loss) Reclassified
	Income (loss)						into Income						Income Statement
(in millions)	2019		2018		2017		2019		2018		2017		Caption
Foreign currency forward exchange contracts designated as cash flow hedges	$	9	$	73	$	(226)	$	79	$	(114)	$	(48)	Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary		4		—		(25)		n/a		n/a		n/a	n/a
Interest rate swaps designated as fair value hedges		n/a		n/a		n/a		148		(97)		(24)	Interest expense

Schedule of carrying values and fair values of certain financial instruments

	2019				2018
	Carrying		Fair		Carrying		Fair
(in millions)	Value		Value		Value		Value
Long-term Investment Securities:
Equity securities	$	836	$	836	$	856	$	856
Other		47		47		41		41
Total Long-term debt		(17,938)		(20,772)		(19,366)		(19,871)
Foreign Currency Forward Exchange Contracts:
Receivable position		148		148		114		114
(Payable) position		(89)		(89)		(95)		(95)
Interest Rate Hedge Contracts:
Receivable position		48		48		—		—
(Payable) position		—		—		(100)		(100)

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

			Basis of Fair Value Measurement
			Quoted		Significant Other		Significant
	Outstanding		Prices in		Observable		Unobservable
(in millions)	Balances		Active Markets		Inputs		Inputs
December 31, 2019:
Equity securities	$	357	$	357	$	—	$	—
Interest rate swap derivative financial instruments		48		—		48		—
Foreign currency forward exchange contracts		148		—		148		—
Total Assets	$	553	$	357	$	196	$	—
Fair value of hedged long-term debt	$	2,890	$	—	$	2,890	$	—
Foreign currency forward exchange contracts		89		—		89		—
Contingent consideration related to business combinations		68		—		—		68
Total Liabilities	$	3,047	$	—	$	2,979	$	68
December 31, 2018:
Equity securities	$	320	$	320	$	—	$	—
Foreign currency forward exchange contracts		114		—		114		—
Total Assets	$	434	$	320	$	114	$	—
Fair value of hedged long-term debt	$	2,743	$	—	$	2,743	$	—
Interest rate swap derivative financial instruments		100		—		100		—
Foreign currency forward exchange contracts		95		—		95		—
Contingent consideration related to business combinations		71		—		—		71
Total Liabilities	$	3,009	$	—	$	2,938	$	71