Fair Value Measurements and Fair Value of Financial Instruments (Tables)
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12 Months Ended |
Dec. 31, 2020 |
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 December 31, 2020 and December 31, 2019: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, | | Quoted Prices in Active Markets | | Significant Other Observable Inputs | | Significant Unobservable Inputs | | | (In millions) | | 2020 | | (Level 1) | | (Level 2) | | (Level 3) | | | | | | | | | | | | | Assets | | | | | | | | | | | Cash equivalents | | $ | 8,971 | | | $ | 8,971 | | | $ | — | | | $ | — | | | | Investments in common stock, mutual funds and other similar instruments | | 21 | | | 21 | | | — | | | — | | | | Warrants | | 7 | | | — | | | 7 | | | — | | | | Insurance contracts | | 157 | | | — | | | 157 | | | — | | | | Derivative contracts | | 28 | | | — | | | 28 | | | — | | | | | | | | | | | | | | | Total Assets | | $ | 9,184 | | | $ | 8,992 | | | $ | 192 | | | $ | — | | | | | | | | | | | | | | | Liabilities | | | | | | | | | | | Derivative contracts | | $ | 132 | | | $ | — | | | $ | 132 | | | $ | — | | | | Contingent consideration | | 70 | | | — | | | — | | | 70 | | | | | | | | | | | | | | | Total Liabilities | | $ | 202 | | | $ | — | | | $ | 132 | | | $ | 70 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, | | Quoted Prices in Active Markets | | Significant Other Observable Inputs | | Significant Unobservable Inputs | | | (In millions) | | 2019 | | (Level 1) | | (Level 2) | | (Level 3) | | | | | | | | | | | | | Assets | | | | | | | | | | | Cash equivalents | | $ | 1,280 | | | $ | 1,280 | | | $ | — | | | $ | — | | | | Investments in common stock, mutual funds and other similar instruments | | 19 | | | 19 | | | — | | | — | | | | Warrants | | 6 | | | — | | | 6 | | | — | | | | Insurance contracts | | 131 | | | — | | | 131 | | | — | | | | Derivative contracts | | 37 | | | — | | | 37 | | | — | | | | | | | | | | | | | | | Total Assets | | $ | 1,473 | | | $ | 1,299 | | | $ | 174 | | | $ | — | | | | | | | | | | | | | | | Liabilities | | | | | | | | | | | Derivative contracts | | $ | 24 | | | $ | — | | | $ | 24 | | | $ | — | | | | Contingent consideration | | 55 | | | — | | | — | | | 55 | | | | | | | | | | | | | | | Total Liabilities | | $ | 79 | | | $ | — | | | $ | 24 | | | $ | 55 | | | |
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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. | | | | | | | | | | | | | | | (In millions) | | 2020 | | 2019 | | | | | | Contingent Consideration | | | | | Balance at Beginning of Year | | $ | 55 | | | $ | 37 | | Acquisitions (including assumed balances) | | 28 | | | 24 | | Payments | | (4) | | | (3) | | Changes in fair value included in earnings | | (9) | | | (3) | | | | | | | Balance at End of Year | | $ | 70 | | | $ | 55 | |
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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. | | | | | | | | | | | | | | | | | December 31, | | December 31, | (In millions) | | 2020 | | 2019 | | | | | | Notional Amount | | | | | Interest rate swaps - fair value hedges (described in Note 10) | | $ | 1,000 | | | $ | 1,000 | | | | | | | Cross-currency interest rate swaps - designated as net investment hedges | | 900 | | | 900 | | | | | | | Currency exchange contracts | | 5,206 | | | 2,846 | |
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value – Assets | | Fair Value – Liabilities | | | December 31, | | December 31, | | December 31, | | December 31, | (In millions) | | 2020 | | 2019 | | 2020 | | 2019 | | | | | | | | | | Derivatives Designated as Hedging Instruments | | | | | | | | Interest rate swaps (a) | | $ | 25 | | | $ | — | | | $ | — | | | $ | 13 | | Cross-currency interest rate swaps (a) | | — | | | 33 | | | 46 | | | — | | Derivatives Not Designated as Hedging Instruments | | | | | | | | Currency exchange contracts (b) | | 3 | | | 4 | | | 86 | | | 11 | | | | | | | | | | | | | | | | | | | | Total Derivatives | | $ | 28 | | | $ | 37 | | | $ | 132 | | | $ | 24 | |
(a)The fair values of the interest rate swaps and cross-currency interest rate swaps are included in the consolidated balance sheet under the caption other assets or other long-term liabilities. (b)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 | | | December 31, | | December 31, | | December 31, | | December 31, | (In millions) | | 2020 | | 2019 | | 2020 | | 2019 | | | | | | | | | | Long-term Obligations | | $ | 1,020 | | | $ | 980 | | | $ | 25 | | | $ | (13) | |
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Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] |
| | | | | | | | | | | | | | | | | Gain (Loss) Recognized | (In millions) | | 2020 | | 2019 | | | | | | Fair Value Hedging Relationships | | | | | Interest rate swaps | | | | | Hedged long-term obligations - included in other expense, net | | $ | (38) | | | $ | (93) | | Derivatives designated as hedging instruments - included in other expense, net | | 38 | | | 97 | | Derivatives Designated as Cash Flow Hedges | | | | | Interest rate swaps | | | | | Included in unrealized losses on hedging instruments within other comprehensive items | | (85) | | | (50) | | Amount reclassified from accumulated other comprehensive items to other expense, net | | (59) | | | (25) | | Financial Instruments Designated as Net Investment Hedges | | | | | Foreign currency-denominated debt | | | | | Included in currency translation adjustment within other comprehensive items | | (873) | | | 60 | | Cross-currency interest rate swaps | | | | | Included in currency translation adjustment within other comprehensive items | | (79) | | | 49 | | Included in other expense, net | | 11 | | | 48 | | Derivatives Not Designated as Hedging Instruments | | | | | Currency exchange contracts | | | | | Included in cost of product revenues | | (17) | | | 1 | | Included in other expense, net | | (81) | | | 52 | | Cross-currency interest rate swaps | | | | | Included in other expense, net | | (9) | | | — | |
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Fair Value, by Balance Sheet Grouping [Table Text Block] |
The carrying value and fair value of the company’s debt obligations are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | | December 31, 2019 | | | Carrying | | Fair | | Carrying | | Fair | (In millions) | | Value | | Value | | Value | | Value | | | | | | | | | | Debt Obligations: | | | | | | | | | Senior notes | | $ | 21,723 | | | $ | 24,653 | | | $ | 17,736 | | | $ | 18,650 | | | | | | | | | | | | | | | | | | | | Other | | 12 | | | 12 | | | 16 | | | 16 | | | | | | | | | | | | | $ | 21,735 | | | $ | 24,665 | | | $ | 17,752 | | | $ | 18,666 | |
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 debt obligations are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | | December 31, 2019 | | | Carrying | | Fair | | Carrying | | Fair | (In millions) | | Value | | Value | | Value | | Value | | | | | | | | | | Debt Obligations: | | | | | | | | | Senior notes | | $ | 21,723 | | | $ | 24,653 | | | $ | 17,736 | | | $ | 18,650 | | | | | | | | | | | | | | | | | | | | Other | | 12 | | | 12 | | | 16 | | | 16 | | | | | | | | | | | | | $ | 21,735 | | | $ | 24,665 | | | $ | 17,752 | | | $ | 18,666 | |
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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