Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Measurements [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 consolidated statements of operations:

(in millions)	Location in Consolidated Statements of Operations	Effective Amount Recognized in OCI									Effective Amount Reclassified from AOCI into Earnings
		Pre-Tax Gain (Loss)			Tax Benefit (Expense)			Gain (Loss) Net of Tax			Pre-Tax (Gain) Loss			Tax (Benefit) Expense		(Gain) Loss Net of Tax
Year Ended December 31, 2017
Forward currency contracts	Cost of products sold	$	(101	)	$	37		$	(65	)	$	(64	)	$	23	$	(41	)
Interest rate derivative contracts	Interest expense	—			—			—			(1		)	—		(1		)
		$	(101	)	$	37		$	(65	)	$	(65	)	$	23	$	(42	)
Year Ended December 31, 2016
Forward currency contracts	Cost of products sold	$	65		$	(23	)	$	40		$	(133	)	$	48	$	(84	)
Interest rate derivative contracts	Interest expense	—			—			—			(1		)	—		(1		)
		$	65		$	(23	)	$	40		$	(134	)	$	48	$	(85	)
Year Ended December 31, 2015
Forward currency contracts	Cost of products sold	$	98		$	(35	)	$	63		$	(213	)	$	77	$	(136	)
Interest rate derivative contracts	Interest expense	11			(4		)	7			(2		)	1		(1		)
		$	109		$	(39	)	$	70		$	(215	)	$	78	$	(137	)

As of December 31, 2017, pre-tax net gains or losses for our derivative instruments designated, or previously designated, as currency hedge contracts under FASB ASC Topic 815 that may be reclassified to earnings within the next twelve months are presented below:

(in millions) Designated Derivative Instrument	Topic 815 Designation	Location in Consolidated Statements of Operations	Amount of Pre-Tax Gain (Loss) that may be Reclassified to Earnings
Interest rate derivative contracts	Fair value hedge	Interest expense	$	12
Interest rate derivative contracts	Cash flow hedge	Interest expense	1
Forward currency contracts	Cash flow hedge	Cost of products sold	(31		)

Classification of derivative assets and liabilities within level 2

The following are the balances of our derivative assets and liabilities:

(in millions)	Location in Consolidated Balance Sheets (1)	As of
		December 31,		December 31,
		2017		2016
Derivative Assets:
Designated Derivative Instruments
Forward currency contracts	Other current assets	$	7	$	98
Forward currency contracts	Other long-term assets	57		65
		64		163
Non-Designated Derivative Instruments
Forward currency contracts	Other current assets	18		36
Total Derivative Assets		$	82	$	199
Derivative Liabilities:
Designated Derivative Instruments
Forward currency contracts	Other current liabilities	$	37	$	3
Forward currency contracts	Other long-term liabilities	33		4
		69		7
Non-Designated Derivative Instruments
Forward currency contracts	Other current liabilities	21		19
Total Derivative Liabilities		$	90	$	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
	December 31, 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	$	21	$	—	$	—	$	21	$	42	$	—	$	—	$	42
Available-for-sale securities	15		—		—		15		20		—		—		20
Forward currency contracts	—		82		—		82		—		199		—		199
	$	36	$	82	$	—	$	118	$	62	$	199	$	—	$	261
Liabilities
Forward currency contracts	$	—	$	90	$	—	$	90	$	—	$	26	$	—	$	26
Accrued contingent consideration	—		—		169		169		—		—		204		204
	$	—	$	90	$	169	$	259	$	—	$	26	$	204	$	230

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

Schedule of Derivative Instruments [Table Text Block]

The following table presents the contractual amounts of our derivative instruments outstanding:

(in millions)	Topic 815 designation	As of
		December 31, 2017		December 31, 2016
Forward currency contracts	Cash flow hedge	$	3,252	$	2,271
Forward currency contracts	Non-designated	2,671		1,830
Total Notional Outstanding		$	5,923	$	4,101

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

Net gains and losses on currency hedge contracts not designated as hedging instruments offset by net losses and gains from currency transaction exposures are presented below:

(in millions)	Location in Consolidated Statements of Operations	Year Ended December 31,
		2017			2016			2015
Net gain (loss) on currency hedge contracts	Other, net	$	(25	)	$	(20	)	$	48
Net gain (loss) on currency transaction exposures	Other, net	10			7			(69		)
Net currency exchange gain (loss)		$	(15	)	$	(13	)	$	(21	)