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Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 2015
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 second quarter and first half of 2015 and 2014 (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 June 30, 2015
 
 
 
 
 
Currency hedge contracts
$
(25
)
 
$
53

 
Cost of products sold
Interest rate derivative contracts
$
10

 
$
1

 
Interest Expense
 
$
(15
)
 
$
54

 
 
Three Months Ended June 30, 2014
 
 
 
 
 
Currency hedge contracts
$
(20
)
 
$
22

 
Cost of products sold
 
$
(20
)
 
$
22

 
 
Six Months Ended June 30, 2015
 
 
 
 
 
Currency hedge contracts
$
68

 
$
102

 
Cost of products sold
Interest rate derivative contracts
$
11

 
$
2

 
Interest Expense
 
$
79

 
$
104

 
 
Six Months Ended June 30, 2014
 
 
 
 
 
Currency hedge contracts
$
(40
)
 
$
43

 
Cost of products sold
 
$
(40
)
 
$
43

 
 
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
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2015
 
2014
 
2015
 
2014
Gain (loss) on currency hedge contracts
 
Other, net
 
$
(9
)
 
$
(17
)
 
$
14

 
$
(20
)
Gain (loss) on foreign currency transaction exposures
 
Other, net
 
4

 
14

 
(28
)
 
14

Net foreign currency gain (loss)
 
Other, net
 
$
(5
)
 
$
(3
)
 
$
(14
)
 
$
(6
)
Classification of derivative assets and liabilities within level 2
The following are the balances of our derivative assets and liabilities as of June 30, 2015 and December 31, 2014:
 
 
As of
 
 
June 30,
 
December 31,
(in millions)
Location in Balance Sheet (1)
2015
 
2014
Derivative Assets:
 
 
 
 
Currently or Previously Designated Hedging Instruments
 
 
 
Currency hedge contracts
Other current assets
$
171

 
$
178

Currency hedge contracts
Other long-term assets
114

 
141

Interest rate contracts
Other current assets

 
3

Interest rate contracts
Other long-term assets

 
22

 
 
285

 
344

Non-Designated Hedging Instruments
 
 
 
 
Currency hedge contracts
Other current assets
44

 
100

Total Derivative Assets
 
$
329

 
$
444

 
 
 
 
 
Derivative Liabilities:
 
 
 
 
Currently or Previously Designated Hedging Instruments
 
 
 
Currency hedge contracts
Other current liabilities
$
1

 
$
1

 
 
1

 
1

Non-Designated Hedging Instruments
 
 
 
 
Currency hedge contracts
Other current liabilities
26

 
35

Total Derivative Liabilities
 
$
27

 
$
36

(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 June 30, 2015 and December 31, 2014:
 
June 30, 2015
 
As of December 31, 2014
(in millions)
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets
 
 
 

 
 
 
 
 
 
 
 

 
 
 
 
Money market and government funds
$
371

 
$

 
$

 
$
371

 
$
151

 
$

 
$

 
$
151

Currency hedge contracts

 
329

 

 
329

 

 
419

 

 
419

Interest rate contracts

 

 

 

 

 
25

 

 
25

 
$
371

 
$
329

 
$

 
$
700

 
$
151

 
$
444

 
$

 
$
595

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Currency hedge contracts
$

 
$
27

 
$

 
$
27

 
$

 
$
36

 
$

 
$
36

Accrued contingent consideration

 

 
241

 
241

 

 

 
274

 
274

 
$

 
$
27

 
$
241

 
$
268

 
$

 
$
36

 
$
274

 
$
310