Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2017

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 FASB ASC Topic 815 on our accompanying unaudited condensed consolidated statements of operations during the second quarter and the first half of2017 and 2016:

(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, 2017
Currency hedge contracts	$	(6	)	$	27	Cost of products sold
	$	(6	)	$	27
Three Months Ended June 30, 2016
Currency hedge contracts	$	(99	)	$	32	Cost of products sold
	$	(99	)	$	32
Six Months Ended June 30, 2017
Currency hedge contracts	$	(64	)	$	55	Cost of products sold
Interest rate derivative contracts	—			1		Interest Expense
	$	(64	)	$	56
Six Months Ended June 30, 2016
Currency hedge contracts	$	(158	)	$	80	Cost of products sold
	$	(158	)	$	80

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,
		2017			2016			2017			2016
Net gain (loss) on currency hedge contracts	Other, net	$	5		$	(28	)	$	(12	)	$	(67	)
Net gain (loss) on foreign currency transaction exposures	Other, net	(13		)	29			4			63
Net foreign currency gain (loss)	Other, net	$	(8	)	$	1		$	(8	)	$	(4	)

Classification of derivative assets and liabilities within level 2

The following are the balances of our derivative assets and liabilities as of June 30, 2017 and December 31, 2016:

		As of
		June 30,		December 31,
(in millions)	Location in Balance Sheet (1)	2017		2016
Derivative Assets:
Currently or Previously Designated Hedging Instruments
Currency hedge contracts	Other current assets	$	20	$	98
Currency hedge contracts	Other long-term assets	52		65
		72		163
Non-Designated Hedging Instruments
Currency hedge contracts	Other current assets	24		36
Total Derivative Assets		$	96	$	199
Derivative Liabilities:
Currently or Previously Designated Hedging Instruments
Currency hedge contracts	Other current liabilities	$	25	$	3
Currency hedge contracts	Other long-term liabilities	11		4
		36		7
Non-Designated Hedging Instruments
Currency hedge contracts	Other current liabilities	34		19
Total Derivative Liabilities		$	70	$	26

(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, 2017 and December 31, 2016:

	As of
	June 30, 2017								December 31, 2016
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Money market and government funds	$	66	$	—	$	—	$	66	$	42	$	—	$	—	$	42
Available-for-sale securities	30		—		—		30		20		—		—		20
Currency hedge contracts	—		96		—		96		—		199		—		199
	$	96	$	96	$	—	$	192	$	62	$	199	$	—	$	261
Liabilities
Currency hedge contracts	$	—	$	70	$	—	$	70	$	—	$	26	$	—	$	26
Accrued contingent consideration	—		—		102		102		—		—		204		204
	$	—	$	70	$	102	$	172	$	—	$	26	$	204	$	230