Fair value measurement (Tables)

9 Months Ended

Sep. 30, 2019

Fair value of each major class of financial assets and liabilities measured at fair value on a recurring basis

The fair values of each major class of the Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in millions):



	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)

Fair value measurement as of September 30, 2019, using:							Total
Assets:
Interest-bearing securities:
U.S. Treasury notes	$	1,167	$	—	$	—	$	1,167
U.S. Treasury bills	2,494		—		—		2,494
Other government-related debt securities:
U.S.	—		—		—		—
Foreign and other	—		925		—		925
Corporate debt securities:
Financial	—		2,140		—		2,140
Industrial	—		2,025		—		2,025
Other	—		537		—		537
Residential-mortgage-backed securities	—		516		—		516
Other mortgage- and asset-backed securities	—		43		—		43
Money market mutual funds	8,017		—		—		8,017
Other short-term interest-bearing securities	—		2,363		—		2,363
Equity securities	277		—		—		277
Derivatives:
Foreign currency contracts	—		339		—		339
Cross-currency swap contracts	—		12		—		12
Interest rate swap contracts	—		354		—		354
Total assets	$	11,955	$	9,254	$	—	$	21,209

Liabilities:
Derivatives:
Foreign currency contracts	$	—	$	6	$	—	$	6
Cross-currency swap contracts	—		478		—		478
Contingent consideration obligations	—		—		62		62
Total liabilities	$	—	$	484	$	62	$	546



	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)

Fair value measurement as of December 31, 2018, using:							Total
Assets:
Interest-bearing securities:
U.S. Treasury notes	$	2,663	$	—	$	—	$	2,663
U.S. Treasury bills	8,191		—		—		8,191
Other government-related debt securities:
U.S.	—		110		—		110
Foreign and other	—		932		—		932
Corporate debt securities:
Financial	—		2,697		—		2,697
Industrial	—		2,504		—		2,504
Other	—		562		—		562
Residential-mortgage-backed securities	—		1,422		—		1,422
Other mortgage- and asset-backed securities	—		469		—		469
Money market mutual funds	5,659		—		—		5,659
Other short-term interest-bearing securities	—		3,515		—		3,515
Equity securities	176		—		—		176
Derivatives:
Foreign currency contracts	—		182		—		182
Cross-currency swap contracts	—		170		—		170
Interest rate swap contracts	—		56		—		56
Total assets	$	16,689	$	12,619	$	—	$	29,308

Liabilities:
Derivatives:
Foreign currency contracts	$	—	$	26	$	—	$	26
Cross-currency swap contracts	—		401		—		401
Interest rate swap contracts	—		149		—		149
Contingent consideration obligations	—		—		72		72
Total liabilities	$	—	$	576	$	72	$	648