Fair Value Measurements and Fair Value of Financial Instruments (Tables)
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6 Months Ended |
Jun. 29, 2019 |
Fair Value Disclosures [Abstract] |
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Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] |
The following tables present information about the company’s financial assets and liabilities measured at fair value on a recurring basis as of June 29, 2019 and December 31, 2018: | | | | | | | | | | | | | | | | | | | | June 29, |
| | Quoted Prices in Active Markets |
| | Significant Other Observable Inputs |
| | Significant Unobservable Inputs |
| (In millions) | | 2019 |
| | (Level 1) |
| | (Level 2) |
| | (Level 3) |
| | | | | | | | | | Assets | | | | | | | | | Cash equivalents | | $ | 1,117 |
| | $ | 1,117 |
| | $ | — |
| | $ | — |
| Investments in common stock, mutual funds and other similar instruments | | 20 |
| | 20 |
| | — |
| | — |
| Warrants | | 6 |
| | — |
| | 6 |
| | — |
| Insurance contracts | | 123 |
| | — |
| | 123 |
| | — |
| Derivative contracts | | 42 |
| | — |
| | 42 |
| | — |
| | | | | | | | | | Total Assets | | $ | 1,308 |
| | $ | 1,137 |
| | $ | 171 |
| | $ | — |
| | | | | | | | | | Liabilities | | | | | | | | | Derivative contracts | | $ | 66 |
| | $ | — |
| | $ | 66 |
| | $ | — |
| Contingent consideration | | 58 |
| | — |
| | — |
| | 58 |
| | | | | | | | | | Total Liabilities | | $ | 124 |
| | $ | — |
| | $ | 66 |
| | $ | 58 |
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| | | | | | | | | | | | | | | | | | | | December 31, |
| | Quoted Prices in Active Markets |
| | Significant Other Observable Inputs |
| | Significant Unobservable Inputs |
| (In millions) | | 2018 |
| | (Level 1) |
| | (Level 2) |
| | (Level 3) |
| | | | | | | | | | Assets | | | | | | | | | Cash equivalents | | $ | 769 |
| | $ | 769 |
| | $ | — |
| | $ | — |
| Bank time deposits | | 2 |
| | 2 |
| | — |
| | — |
| Investments in mutual funds and other similar instruments | | 10 |
| | 10 |
| | — |
| | — |
| Warrants | | 8 |
| | — |
| | 8 |
| | — |
| Insurance contracts | | 113 |
| | — |
| | 113 |
| | — |
| Derivative contracts | | 31 |
| | — |
| | 31 |
| | — |
| | | | | | | | | | Total Assets | | $ | 933 |
| | $ | 781 |
| | $ | 152 |
| | $ | — |
| | | | | | | | | | Liabilities | | | | | | | | | Derivative contracts | | $ | 145 |
| | $ | — |
| | $ | 145 |
| | $ | — |
| Contingent consideration | | 37 |
| | — |
| | — |
| | 37 |
| | | | | | | | | | Total Liabilities | | $ | 182 |
| | $ | — |
| | $ | 145 |
| | $ | 37 |
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] |
The following table provides a rollforward of the fair value, as determined by level 3 inputs, of the contingent consideration. | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 29, |
| | June 30, |
| | June 29, |
| | June 30, |
| (In millions) | | 2019 |
| | 2018 |
| | 2019 |
| | 2018 |
| | | | | | | | | | Contingent Consideration | | | | | | | | | Beginning Balance | | $ | 37 |
| | $ | 41 |
| | $ | 37 |
| | $ | 35 |
| Acquisitions (including assumed balances) | | 24 |
| | — |
| | 24 |
| | 11 |
| Payments | | — |
| | — |
| | — |
| | (5 | ) | Change in fair value included in earnings | | (3 | ) | | (1 | ) | | (3 | ) | | (1 | ) | | | | | | | | | | Ending Balance | | $ | 58 |
| | $ | 40 |
| | $ | 58 |
| | $ | 40 |
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Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] |
The following table provides the aggregate notional value of outstanding derivative contracts. | | | | | | | | | | | | June 29, |
| | December 31, |
| (In millions) | | 2019 |
| | 2018 |
| | | | | | Notional Amount | | | | | Interest rate swaps (described in Note 8) | | $ | 3,100 |
| | $ | 3,100 |
| Cross-currency interest rate swaps - designated as net investment hedges | | 1,800 |
| | 1,500 |
| Currency exchange contracts | | 3,642 |
| | 3,424 |
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] |
| | | | | | | | | | | | | | | | | | | | Fair Value – Assets | | Fair Value – Liabilities | | | June 29, |
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| December 31, |
| | June 29, |
| | December 31, |
| (In millions) | | 2019 |
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| 2018 |
| | 2019 |
| | 2018 |
| | | | | | | | | | Derivatives Designated as Hedging Instruments | | | | | | | | Interest rate swaps (a) | | $ | — |
| | $ | — |
| | $ | 46 |
| | $ | 129 |
| Cross-currency interest rate swaps (b) | | 36 |
| | 28 |
| | — |
| | — |
| Derivatives Not Designated as Hedging Instruments | | | | | | | | Currency exchange contracts (c) | | 6 |
| | 3 |
| | 20 |
| | 16 |
| | | | | | | | | | Total Derivatives | | $ | 42 |
| | $ | 31 |
| | $ | 66 |
| | $ | 145 |
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| | (a) | The fair value of the interest rate swaps is included in the consolidated balance sheet under the caption other long-term liabilities. |
| | (b) | The fair value of the cross-currency interest rate swaps is included in the consolidated balance sheet under the caption other assets. |
| | (c) | The fair value of the currency exchange contracts is included in the consolidated balance sheet under the captions other current assets or other accrued expenses. |
The following amounts related to cumulative basis adjustments for fair value hedges were included in the consolidated balance sheet under the caption long-term obligations: | | | | | | | | | | | | | | | | | | | | Carrying Amount of the Hedged Liability | | Cumulative Amount of Fair Value Hedging Adjustment - Increase (Decrease) Included in Carrying Amount of Liability (d) | | | June 29, |
| | December 31, |
| | June 29, |
| | December 31, |
| (In millions) | | 2019 |
| | 2018 |
| | 2019 |
| | 2018 |
| | | | | | | | | | Long-term Obligations | | $ | 3,368 |
| | $ | 3,291 |
| | $ | (19 | ) | | $ | (93 | ) |
(d) Includes increases in the carrying amount of $24 million and $30 million at June 29, 2019 and December 31, 2018, respectively, on discontinued hedging relationships.
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Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] |
| | | | | | | | | | | | | | | | | | | | Gain (Loss) Recognized | | | Three Months Ended | | Six Months Ended | | | June 29, |
| | June 30, |
| | June 29, |
| | June 30, |
| (In millions) | | 2019 |
| | 2018 |
| | 2019 |
| | 2018 |
| | | | | | | | | | Fair Value Hedging Relationships | | | | | | | | | Interest rate swaps | | | | | | | | | Hedged long-term obligations - included in other expense, net | | $ | (53 | ) | | $ | 10 |
| | $ | (81 | ) | | $ | 52 |
| Derivatives designated as hedging instruments - included in other expense, net | | 54 |
| | (11 | ) | | 83 |
| | (49 | ) | Derivatives Designated as Cash Flow Hedges | | | | | | | | | Interest rate swaps | | | | | | | | | Amount reclassified from accumulated other comprehensive items to other expense, net | | (4 | ) | | (3 | ) | | (7 | ) | | (6 | ) | Derivatives Designated as Net Investment Hedges | | | | | | | | | Foreign currency-denominated debt | | | | | | | | | Included in currency translation adjustment within other comprehensive items | | (97 | ) | | 400 |
| | 59 |
| | 200 |
| Cross-currency interest rate swaps | | | | | | | | | Included in currency translation adjustment within other comprehensive items | | (30 | ) | | 3 |
| | 7 |
| | 3 |
| Included in other expense, net | | 14 |
| | 3 |
| | 28 |
| | 3 |
| Derivatives Not Designated as Hedging Instruments | | | | | | | | | Currency exchange contracts | | | | | | | | | Included in cost of product revenues | | (3 | ) | | 2 |
| | (1 | ) | | — |
| Included in other expense, net | | (11 | ) | | 35 |
| | 6 |
| | 27 |
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Fair Value, by Balance Sheet Grouping [Table Text Block] |
The carrying value and fair value of the company’s notes receivable and debt obligations are as follows: | | | | | | | | | | | | | | | | | | | | June 29, 2019 | | December 31, 2018 | | | Carrying |
| | Fair |
| | Carrying |
| | Fair |
| (In millions) | | Value |
| | Value |
| | Value |
| | Value |
| | | | | | | | | | Debt Obligations: | | | | | | | | | Senior notes | | $ | 18,283 |
| | $ | 19,313 |
| | $ | 18,276 |
| | $ | 18,322 |
| Commercial paper | | 737 |
| | 737 |
| | 693 |
| | 693 |
| Other | | 20 |
| | 20 |
| | 21 |
| | 21 |
| | | | | | | | | | | | $ | 19,040 |
| | $ | 20,070 |
| | $ | 18,990 |
| | $ | 19,036 |
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The fair value of debt obligations was determined based on quoted market prices and on borrowing rates available to the company at the respective period ends which represent level 2 measurements.
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Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] |
The carrying value and fair value of the company’s notes receivable and debt obligations are as follows: | | | | | | | | | | | | | | | | | | | | June 29, 2019 | | December 31, 2018 | | | Carrying |
| | Fair |
| | Carrying |
| | Fair |
| (In millions) | | Value |
| | Value |
| | Value |
| | Value |
| | | | | | | | | | Debt Obligations: | | | | | | | | | Senior notes | | $ | 18,283 |
| | $ | 19,313 |
| | $ | 18,276 |
| | $ | 18,322 |
| Commercial paper | | 737 |
| | 737 |
| | 693 |
| | 693 |
| Other | | 20 |
| | 20 |
| | 21 |
| | 21 |
| | | | | | | | | | | | $ | 19,040 |
| | $ | 20,070 |
| | $ | 18,990 |
| | $ | 19,036 |
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The fair value of debt obligations was determined based on quoted market prices and on borrowing rates available to the company at the respective period ends which represent level 2 measurements.
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