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Hedging Activities and Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2022
Derivative [Line Items]  
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]
The following table presents the contractual amounts of our hedging instruments outstanding:
(in millions)FASB ASC Topic 815 DesignationAs of
September 30, 2022December 31, 2021
Forward currency contractsCash flow hedge$3,084 $3,996 
Forward currency contractsNet investment hedge365 493 
Foreign currency-denominated debt(1)
Net investment hedge997 997 
Forward currency contractsNon-designated3,432 3,892 
Total Notional Outstanding$7,877 $9,378 
(1)    Foreign currency-denominated debt is the portion of the €900 million debt principal associated with our 2027 Notes designated as a net investment hedge.
Derivative Instruments, Gain (Loss) [Table Text Block]
Effect of Hedging Relationships on Accumulated Other Comprehensive Income
Amount Recognized in OCI on Hedges
Unaudited Consolidated Statements of Operations(1)
Amount Reclassified from AOCI into Earnings
(in millions)Pre-Tax Gain (Loss)Tax Benefit (Expense)Gain (Loss) Net of TaxLocation of Amount Reclassified and Total Amount of Line ItemPre-Tax (Gain) LossTax (Benefit) Expense(Gain) Loss Net of Tax
Three Months Ended September 30, 2022
Forward currency contracts
Cash flow hedges$153 $(34)$119 Cost of products sold$979 $(61)$14 $(47)
Net investment hedges(2)
14 (16)(2)Interest expense63 (3)1 (2)
Foreign currency-denominated debt
Net investment hedges(3)
56 (13)43 Other, net51 — — — 
Interest rate derivative contracts
Cash flow hedges— — — Interest expense63 1 — 1 

Effect of Hedging Relationships on Accumulated Other Comprehensive Income
Amount Recognized in OCI on Hedges
Unaudited Consolidated Statements of Operations(1)
Amount Reclassified from AOCI into Earnings
(in millions)Pre-Tax Gain (Loss)Tax Benefit (Expense)Gain (Loss) Net of TaxLocation of Amount Reclassified and Total Amount of Line ItemPre-Tax (Gain) LossTax (Benefit) Expense(Gain) Loss Net of Tax
Three Months Ended September 30, 2021
Forward currency contracts
Cash flow hedges$79 $(18)$61 Cost of products sold$900 $(16)$3 $(12)
Net investment hedges(2)
7 (2)6 Interest expense86 (2)— (2)
Foreign currency-denominated debt
Net investment hedges(3)
25 (6)20 Other, net(181)— — — 
Interest rate derivative contracts
Cash flow hedges— — — Interest Expense86 1 — 1 
Effect of Hedging Relationships on Accumulated Other Comprehensive Income
Amount Recognized in OCI on Hedges
Unaudited Consolidated Statements of Operations(1)
Amount Reclassified from AOCI into Earnings
(in millions)Pre-Tax Gain (Loss)Tax Benefit (Expense)Gain (Loss) Net of TaxLocation of Amount Reclassified and Total Amount of Line ItemPre-Tax (Gain) LossTax (Benefit) Expense(Gain) Loss Net of Tax
Nine Months Ended September 30, 2022
Forward currency contracts
Cash flow hedges$412 $(93)$319 Cost of products sold$2,945 $(132)$30 $(102)
Net investment hedges (2)
63 (14)48 Interest expense406 (7)2 (6)
Foreign currency-denominated debt
Net investment hedges (3)
142 (32)110 Other, net96 — — — 
Interest rate derivative contracts
Cash flow hedges— — — Interest expense406 15 (3)12 

Effect of Hedging Relationships on Accumulated Other Comprehensive Income
Amount Recognized in OCI on Hedges
Unaudited Consolidated Statements of Operations(1)
Amount Reclassified from AOCI into Earnings
(in millions)Pre-Tax Gain (Loss)Tax Benefit (Expense)Gain (Loss) Net of TaxLocation of Amount Reclassified and Total Amount of Line ItemPre-Tax (Gain) LossTax (Benefit) Expense(Gain) Loss Net of Tax
Nine Months Ended September 30, 2021
Forward currency contracts
Cash flow hedges$234 $(53)$182 Cost of products sold$2,739 $(31)$7 $(24)
Net investment hedges (2)
50 (11)39 Interest expense254 (11)3 (9)
Foreign currency-denominated debt
Net investment hedges (3)
60 (14)47 Other, net(192)— — — 
Interest rate derivative contracts
Cash flow hedges— — — Interest expense254 4 (1)3 
(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.
(2)    For our outstanding forward currency contracts designated as 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 and prior period, we did not recognize any gains or losses on the components included in the assessment of hedge effectiveness in earnings.
(3)    For our outstanding euro-denominated debt principal designated as a net investment hedge, the change in fair value attributable to changes in the spot rate is recorded in the CTA component of OCI. No amounts were reclassified from AOCI to current period earnings.
Derivative Instruments, Gain (Loss) that may be Reclassified from AOCI to Earnings within Twelve Months [Table Text Block]
As of September 30, 2022, 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)FASB ASC Topic 815 DesignationLocation on Unaudited Consolidated Statements of OperationsAmount of Pre-Tax Gain (Loss) that may be Reclassified to Earnings
Designated Hedging Instrument
Forward currency contractsCash flow hedgeCost of products sold$321 
Forward currency contractsNet investment hedgeInterest expense10 
Interest rate derivative contractsCash flow hedgeInterest expense(3)
Derivatives Not Designated as Hedging Instruments [Table Text Block]
Net gains and losses on currency hedge contracts not designated as hedging instruments offset by net gains and losses from currency transaction exposures are presented below:
Location on Unaudited Consolidated Statements of OperationsThree Months Ended September 30,Nine Months Ended September 30,
(in millions)2022202120222021
Net gain (loss) on currency hedge contractsOther, net$(29)$(15)$(93)$(17)
Net gain (loss) on currency transaction exposuresOther, net(8)7 48 1 
Net currency exchange gain (loss)$(38)$(8)$(45)$(17)
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] The following are the balances of our derivative and nonderivative assets and liabilities:
 
Location on Unaudited Consolidated Balance Sheets(1)
As of
(in millions)September 30, 2022December 31, 2021
Derivative and Nonderivative Assets:   
Designated Hedging Instruments  
Forward currency contractsOther current assets$305 $183 
Forward currency contractsOther long-term assets285 169 
  590 352 
Non-Designated Hedging Instruments   
Forward currency contractsOther current assets62 42 
Total Derivative and Nonderivative Assets $652 $394 
Derivative and Nonderivative Liabilities:   
Designated Hedging Instruments  
Forward currency contractsOther current liabilities$4 $32 
Forward currency contractsOther long-term liabilities— 6 
Foreign currency-denominated debt(2)
Long-term debt871 1,011 
  875 1,049 
Non-Designated Hedging Instruments   
Forward currency contractsOther current liabilities67 22 
Total Derivative and Nonderivative Liabilities $942 $1,071 
(1)    We classify derivative and nonderivative assets and liabilities as current when the settlement date of the contract is one year or less.
(2)    Foreign currency-denominated debt is the portion of the €900 million debt principal associated with our 2027 Notes designated as a net investment hedge. A portion of this notional is subject to de-designation and re-designation based on changes in the underlying hedged item.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
Assets and liabilities measured at fair value on a recurring basis consist of the following:
As of
 September 30, 2022December 31, 2021
(in millions)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets        
Money market funds and time deposits$95 $— $— $95 $1,632 $— $— $1,632 
Publicly-held equity securities3 — — 3 10 — — 10 
Hedging instruments— 652 — 652 — 394 — 394 
Licensing arrangements— — 151 151 — — 246 246 
 $99 $652 $151 $902 $1,642 $394 $246 $2,282 
Liabilities        
Hedging instruments$— $942 $— $942 $— $1,071 $— $1,071 
Contingent consideration liability— — 182 182 — — 486 486 
Licensing arrangements— — 167 167 — — 281 281 
 $— $942 $349 $1,291 $— $1,071 $767 $1,838 
The recurring Level 3 fair value measurements of our licensing arrangements recognized in our accompanying unaudited consolidated balance sheets as of September 30, 2022 include the following significant unobservable inputs:
Licensing ArrangementsFair Value as of September 30, 2022Valuation TechniqueUnobservable InputRange
Weighted Average (1)
Financial Asset$151 millionDiscounted Cash FlowDiscount Rate15%15%
Projected Year of Payment2022-20252024
Financial Liability$167 millionDiscounted Cash FlowDiscount Rate12 %-15%13%
Projected Year of Payment2022-20262024
(1)    Unobservable inputs relate to a single financial asset and liability. As such, unobservable inputs were not weighted by the relative fair value of the instruments. For projected year of payment, the amount represents the median of the inputs and is not a weighted average.

Changes in the fair value of our licensing arrangements' financial asset were as follows:
(in millions)
Balance as of December 31, 2021$246 
Proceeds from royalty rights(108)
Fair value adjustment (expense) benefit14 
Balance as of September 30, 2022$151 

Changes in the fair value of our licensing arrangements' financial liability were as follows:
(in millions)
Balance as of December 31, 2021$281 
Payments for royalty rights(129)
Fair value adjustment expense (benefit)15 
Balance as of September 30, 2022$167