Fair value measurement (Tables)

9 Months Ended

Sep. 30, 2012

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

The fair value of each major class of the Company’s financial assets and liabilities measured at fair value on a recurring basis was 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, 2012, using:							Total
Assets:
Available-for-sale securities:
U.S. Treasury securities	$	3,960	$	—	$	—	$	3,960
Other government-related debt securities:
Obligations of U.S. government agencies and FDIC-guaranteed bank debt	—		1,198		—		1,198
Foreign and other	—		1,712		—		1,712
Corporate debt securities:
Financial	—		3,256		—		3,256
Industrial	—		4,318		—		4,318
Other	—		432		—		432
Residential mortgage-backed securities	—		1,836		—		1,836
Other mortgage- and asset-backed securities	—		2,066		—		2,066
Money market mutual funds	4,000		—		—		4,000
Other short-term interest-bearing securities	—		2,105		—		2,105
Equity securities	52		—		—		52
Derivatives:
Foreign currency contracts	—		87		—		87
Cross-currency swap contracts	—		12		—		12
Total assets	$	8,012	$	17,022	$	—	$	25,034
Liabilities:
Derivatives:
Foreign currency contracts	$	—	$	55	$	—	$	55
Cross-currency swap contracts	—		27		—		27
Contingent consideration obligations in connection with a business combination	—		—		195		195
Total liabilities	$	—	$	82	$	195	$	277



	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, 2011, using:							Total
Assets:
Available-for-sale investments:
U.S. Treasury securities	$	3,946	$	—	$	—	$	3,946
Other government-related debt securities:
Obligations of U.S. government agencies and FDIC-guaranteed bank debt	—		1,571		—		1,571
Foreign and other	—		450		—		450
Corporate debt securities:
Financial	—		2,508		—		2,508
Industrial	—		3,146		—		3,146
Other	—		289		—		289
Residential mortgage-backed securities	—		518		—		518
Other mortgage- and asset-backed securities	—		1,267		—		1,267
Money market mutual funds	6,266		—		—		6,266
Equity securities	42		—		—		42
Derivatives:
Foreign currency contracts	—		172		—		172
Interest rate swap contracts	—		377		—		377
Total assets	$	10,254	$	10,298	$	—	$	20,552
Liabilities:
Derivatives:
Foreign currency contracts	$	—	$	48	$	—	$	48
Cross-currency swap contracts	—		26		—		26
Contingent consideration obligations in connection with a business combination	—		—		190		190
Total liabilities	$	—	$	74	$	190	$	264