Derivative instruments (Tables)

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of notional amounts and interest rates for cross-currency swaps

The notional amounts and interest rates of our cross-currency swaps as of December 31, 2017, were as follows (notional amounts in millions):

	Foreign currency				U.S. dollars
Hedged notes	Notional amount		Interest rate		Notional amount		Interest rate
2.125% 2019 euro Notes	€	675	2.125	%	$	864	2.6	%
1.25% 2022 euro Notes	€	1,250	1.25	%	$	1,388	3.2	%
0.41 % 2023 Swiss franc Bonds	CHF	700	0.41	%	$	704	3.4	%
2.00% 2026 euro Notes	€	750	2.00	%	$	833	3.9	%
5.50% 2026 pound sterling Notes	£	475	5.50	%	$	747	6.0	%
4.00% 2029 pound sterling Notes	£	700	4.00	%	$	1,111	4.5	%

Effective portion of the unrealized gain (loss) recognized in Other Comprehensive Income for our derivative instruments designated as cash flow hedges

The effective portions of unrealized gains and losses recognized in AOCI for our derivative instruments designated as cash flow hedges were as follows (in millions):

	Years ended December 31,
Derivatives in cash flow hedging relationships	2017			2016			2015
Foreign currency contracts	$	(402	)	$	115		$	425
Cross-currency swap contracts	581			(281		)	(275		)
Forward interest rate contracts	13			(10		)	—
Total unrealized gains (losses)	$	192		$	(176	)	$	150

Location in the Consolidated Statements of Income and the effective portion of gain (loss) reclassified from Accumulated Other Comprehensive Income into earnings for our derivative instruments designated as cash flow hedges

The locations in the Consolidated Statements of Income and the effective portions of the gains and losses reclassified out of AOCI and into earnings for our derivative instruments designated as cash flow hedges were as follows (in millions):

		Years ended December 31,
Derivatives in cash flow hedging relationships	Consolidated Statements of Income location	2017			2016			2015
Foreign currency contracts	Product sales	$	65		$	308		$	326
Cross-currency swap contracts	Interest and other income, net	574			(446		)	(182		)
Forward interest rate contracts	Interest expense, net	(1		)	(1		)	(1		)
Total realized gains (losses)		$	638		$	(139	)	$	143

Location in the Consolidated Statements of Income and the amount of gain (loss) recognized in earnings for the derivative instruments not designated as hedging instruments

The location in the Consolidated Statements of Income and the amount of gains (losses) recognized in earnings for our derivative instruments not designated as hedging instruments were as follows (in millions):

		Years ended December 31,
Derivatives not designated as hedging instruments	Consolidated Statements of Income location	2017		2016			2015
Foreign currency contracts	Interest and other income, net	$	24	$	(56	)	$	(16	)

Fair values of derivatives included in the Consolidated Balance Sheets

The fair values of derivatives included on the Consolidated Balance Sheets were as follows (in millions):

	Derivative assets			Derivative liabilities
December 31, 2017	Consolidated Balance Sheet location	Fair value		Consolidated Balance Sheet location	Fair value
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current assets/ Other noncurrent assets	$	6	Accrued liabilities/ Other noncurrent liabilities	$	204
Cross-currency swap contracts	Other current assets/ Other noncurrent assets	270		Accrued liabilities/ Other noncurrent liabilities	220
Interest rate swap contracts	Other current assets/ Other noncurrent assets	10		Accrued liabilities/ Other noncurrent liabilities	61
Total derivatives designated as hedging instruments		$	286		$	485
	Derivative assets			Derivative liabilities
December 31, 2016	Consolidated Balance Sheet location	Fair value		Consolidated Balance Sheet location	Fair value
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current assets/ Other noncurrent assets	$	203	Accrued liabilities/ Other noncurrent liabilities	$	4
Cross-currency swap contracts	Other current assets/ Other noncurrent assets	—		Accrued liabilities/ Other noncurrent liabilities	523
Interest rate swap contracts	Other current assets/ Other noncurrent assets	41		Accrued liabilities/ Other noncurrent liabilities	7
Total derivatives designated as hedging instruments		$	244		$	534