Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Measurements (Tables) [Abstract]

Gains (losses) recognized in earnings for derivatives designed as hedging instruments

The following presents the effect of our derivative instruments designated as cash flow hedges under Topic 815 on our accompanying unaudited condensed consolidated statements of operations during the third quarter and first nine months of 2012 and 2011 (in millions):

	Amount of Pre-tax Gain (Loss) Recognized in OCI (Effective Portion)			Amount of Pre-tax Loss Reclassified from AOCI into Earnings (Effective Portion)			Location in Statement of Operations
Three Months Ended September 30, 2012
Currency hedge contracts	$	(44	)	$	(3	)	Cost of products sold
	$	(44	)	$	(3	)
Three Months Ended September 30, 2011
Currency hedge contracts	$	29		$	(28	)	Cost of products sold
	$	29		$	(28	)
Nine Months Ended September 30, 2012
Currency hedge contracts	$	2		$	(29	)	Cost of products sold
	$	2		$	(29	)
Nine Months Ended September 30, 2011
Currency hedge contracts	$	(77	)	$	(74	)	Cost of products sold
	$	(77	)	$	(74	)

Gains (losses) recognized in earnings for derivatives not designated as hedging instruments

The amount of gain (loss) recognized in earnings related to the ineffective portion of hedging relationships was de minimis for all periods presented.

Derivatives Not Designated as Hedging Instruments	Location in Statement of Operations	Amount of Gain (Loss) Recognized in Earnings (in millions)					Amount of Gain Recognized in Earnings (in millions)
		Three Months Ended September 30,					Nine Months Ended September 30,
		2012			2011		2012	2011
Currency hedge contracts	Other, net	$	(14	)	$	8		$	2
		$	(14	)	$	8		$	2

Classification of derivative assets and liabilities within level 2

The following are the balances of our derivative assets and liabilities as of September 30, 2012 and December 31, 2011:

		As of
		September 30,		December 31,
(in millions)	Location in Balance Sheet (1)	2012		2011
Derivative Assets:
Designated Hedging Instruments
Currency hedge contracts	Prepaid and other current assets	$	18	$	31
Currency hedge contracts	Other long-term assets	19		20
		37		51
Non-Designated Hedging Instruments
Currency hedge contracts	Prepaid and other current assets	14		36
Total Derivative Assets		$	51	$	87
Derivative Liabilities:
Designated Hedging Instruments
Currency hedge contracts	Other current liabilities	$	55	$	69
Currency hedge contracts	Other long-term liabilities	25		49
		80		118
Non-Designated Hedging Instruments
Currency hedge contracts	Other current liabilities	21		13
Total Derivative Liabilities		$	101	$	131

(1) We classify derivative assets and liabilities as current when the remaining term of the derivative contract is one year or less.

Assets and liabilities measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis consist of the following as of September 30, 2012 and December 31, 2011:

	As of September 30, 2012								As of December 31, 2011
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Money market and government funds	$	64					$	64	$	78					$	78
Currency hedge contracts			$	51			51				$	87			87
	$	64	$	51			$	115	$	78	$	87			$	165
Liabilities
Currency hedge contracts			$	101			$	101			$	131			$	131
Accrued contingent consideration					$	604	604						$	358	358
			$	101	$	604	$	705			$	131	$	358	$	489