Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2018

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

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, 2018								December 31, 2017
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Money market and government funds	$	13	$	—	$	—	$	13	$	21	$	—	$	—	$	21
Publicly-held securities	—		—		—		—		15		—		—		15
Derivative Instruments	—		304		—		304		—		82		—		82
	$	14	$	304	$	—	$	318	$	36	$	82	$	—	$	118
Liabilities
Derivative Instruments	$	—	$	80	$	—	$	80	$	—	$	90	$	—	$	90
Contingent consideration liability	—		—		347		347		—		—		169		169
	$	—	$	80	$	347	$	427	$	—	$	90	$	169	$	259

Classification of derivative assets and liabilities within level 2

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

(in millions)	Location on Consolidated Balance Sheets (1)	As of
		December 31, 2018		December 31, 2017
Derivative Assets:
Designated Derivative Instruments
Forward currency contracts	Other current assets	$	55	$	7
Forward currency contracts	Other long-term assets	183		57
		237		64
Non-Designated Derivative Instruments
Forward currency contracts	Other current assets	67		18
Total Derivative Assets		$	304	$	82
Derivative Liabilities:
Designated Derivative Instruments
Forward currency contracts	Other current liabilities	$	2	$	37
Forward currency contracts	Other long-term liabilities	3		33
Interest rate contracts	Other current liabilities	44		—
		49		69
Non-Designated Derivative Instruments
Forward currency contracts	Other current liabilities	31		21
Total Derivative Liabilities		$	80	$	90

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

Derivative Instruments, Gain (Loss) that may be Reclassified from AOCI to Earnings within Twelve Months [Table Text Block]

As of December 31, 2018, pre-tax net gains or losses for our derivative instruments designated, or previously designated, as cash flow and net investment hedges under FASB ASC Topic 815 that may be reclassified from AOCI to earnings within the next twelve months are presented below (in millions):

Designated Derivative Instrument	FASB ASC Topic 815 Designation	Location on Consolidated Statements of Operations	Amount of Pre-Tax Gain (Loss) that may be Reclassified to Earnings
Forward currency contracts	Cash flow hedge	Cost of products sold	56
Forward currency contracts	Net investment hedge	Interest expense	41
Interest rate derivative contracts	Cash flow hedge	Interest expense	(43	)

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

The following presents the effect of our derivative instruments designated as cash flow and net investment hedges under FASB ASC Topic 815 on our accompanying consolidated statements of operations. Refer to Note P – Changes in Other Comprehensive Income for the total amounts relating to derivative instruments presented within the consolidated statements of comprehensive income (loss).

	Effect of Hedging Relationships on Accumulated Other Comprehensive Income
	Amount Recognized in OCI on Derivative									Consolidated Statements of Operations (1)			Amount Reclassified from AOCI into Earnings
	Pre-Tax Gain (Loss)			Tax Benefit (Expense)			Gain (Loss) Net of Tax			Location of Amount Reclassified	Total Amount of Line Item Presented		Pre-Tax (Gain) Loss			Tax (Benefit) Expense			(Gain) Loss Net of Tax
Year Ended December 31, 2018
Forward currency contracts
Cash flow hedges	$	167		$	(38	)	$	130		Cost of products sold	$	2,813	$	19		$	(4	)	$	15
Net investment hedges (2)	56			(13		)	43			Interest expense	241		(27		)	6			(21		)
Interest rate derivative contracts
Cash flow hedges	(44		)	10			(34		)	Interest expense	241		(1		)	—			(1		)
Year Ended December 31, 2017
Forward currency contracts
Cash flow hedges	$	(101	)	$	37		$	(65	)	Cost of products sold	$	2,593	$	(64	)	$	23		$	(41	)
Interest rate derivative contracts
Cash flow hedges	—			—			—			Interest expense	229		(1		)	—			(1		)
Year Ended December 31, 2016
Forward currency contracts
Cash flow hedges	$	65		$	(23	)	$	40		Cost of products sold	$	2,424	$	(133	)	$	48		$	(84	)
Interest rate derivative contracts
Cash flow hedges	—			—			—			Interest expense	233		(1		)	—			(1		)

(1) In all periods presented in the table above, the pre-tax (gain) loss amounts reclassified from AOCI to earnings represent the effect of the hedging relationships on earnings. All other amounts included in earnings related to hedging relationships were immaterial.

(2) For our outstanding net investment hedges, the net gain or loss reclassified from AOCI to earnings as a reduction of Interest expense represents the straight-line amortization of the excluded component as calculated at the date of designation. This initial value of the excluded component has been excluded from the assessment of effectiveness in accordance with FASB ASC Topic 815. In the current period, we did not recognize any gains or losses on the components included in the assessment of hedge effectiveness in AOCI or earnings.

Schedule of Derivative Instruments [Table Text Block]

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

(in millions)	FASB ASC Topic 815 Designation	As of
		December 31, 2018		December 31, 2017
Forward currency contracts	Cash flow hedge	$	3,962	$	3,252
Forward currency contracts	Net investment hedge	1,483		—
Forward currency contracts	Non-designated	5,880		2,671
Interest rate derivative contracts	Cash flow hedge	1,000		—
Total Notional Outstanding		$	12,326	$	5,923

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

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

(in millions)	Location on Consolidated Statements of Operations	Year Ended December 31,
		2018			2017			2016
Net gain (loss) on currency hedge contracts	Other, net	$	41		$	(25	)	$	(20	)
Net gain (loss) on currency transaction exposures	Other, net	(30		)	10			7
Net currency exchange gain (loss)		$	11		$	(15	)	$	(13	)