Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [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 2014 and 2013 (in millions):

	Amount of Pre-tax Gain (Loss) Recognized in OCI (Effective Portion)			Amount of Pre-tax Gain (Loss) Reclassified from AOCI into Earnings (Effective Portion)		Location in Statement of Operations
Three Months Ended September 30, 2014
Currency hedge contracts	$	156		$	25	Cost of products sold
	$	156		$	25
Three Months Ended September 30, 2013
Currency hedge contracts	$	(45	)	$	15	Cost of products sold
	$	(45	)	$	15
Nine Months Ended September 30, 2014
Currency hedge contracts	$	115		$	68	Cost of products sold
	$	115		$	68
Nine Months Ended September 30, 2013
Currency hedge contracts	$	144		$	15	Cost of products sold
	$	144		$	15

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.

Net foreign currency gain (loss) [Table Text Block]

Net gains and losses on currency hedge contracts not designated as hedging instruments were offset by net losses and gains from foreign currency transaction exposures, as shown in the following table:

in millions	Location in Statement of Operations	Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2014			2013			2014			2013
Gain (loss) on currency hedge contracts	Other, net	$	40		$	12		$	20		$	66
Gain (loss) on foreign currency transaction exposures	Other, net	(45		)	(15		)	(31		)	(72		)
Net foreign currency gain (loss)	Other, net	$	(5	)	$	(3	)	$	(11	)	$	(6	)

Classification of derivative assets and liabilities within level 2

The following are the balances of our derivative assets and liabilities as of September 30, 2014 and December 31, 2013:

		As of
		September 30,		December 31,
(in millions)	Location in Balance Sheet (1)	2014		2013
Derivative Assets:
Designated Hedging Instruments
Currency hedge contracts	Prepaid and other current assets	$	143	$	117
Currency hedge contracts	Other long-term assets	112		120
Interest rate contracts	Prepaid and other current assets	7		1
Interest rate contracts	Other long-term assets	10		—
		272		238
Non-Designated Hedging Instruments
Currency hedge contracts	Prepaid and other current assets	70		27
Total Derivative Assets		$	342	$	265
Derivative Liabilities:
Designated Hedging Instruments
Currency hedge contracts	Other current liabilities	$	2	$	13
Currency hedge contracts	Other long-term liabilities	2		19
Interest rate contracts	Other long-term liabilities	—		8
		4		40
Non-Designated Hedging Instruments
Currency hedge contracts	Other current liabilities	29		23
Total Derivative Liabilities		$	33	$	63

(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, 2014 and December 31, 2013:

	As of September 30, 2014								As of December 31, 2013
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Money market and government funds	$	29	$	—	$	—	$	29	$	38	$	—	$	—	$	38
Currency hedge contracts	—		325		—		325		—		264		—		264
Interest rate contracts	—		17		—		17		—		1		—		1
	$	29	$	342	$	—	$	371	$	38	$	265	$	—	$	303
Liabilities
Currency hedge contracts	$	—	$	33	$	—	$	33	$	—	$	55	$	—	$	55
Accrued contingent consideration	—		—		363		363		—		—		501		501
Interest rate contracts	—		—		—		—		—		8		—		8
	$	—	$	33	$	363	$	396	$	—	$	63	$	501	$	564