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Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Effect of Net Investment Hedges

The effects of the Company’s net investment hedges on OCI and the Consolidated Statement of Income are shown below:

	Amount of Pretax (Gain) Loss Recognized in Other Comprehensive Income (1)												Amount of Pretax (Gain) Loss Recognized in Other (income) expense, net for Amounts Excluded from Effectiveness Testing
Years Ended December 31	2018				2017				2016				2018				2017				2016
Net Investment Hedging Relationships
Foreign exchange contracts	$	(18	)		$	—			$	2			$	(11	)		$	—			$	(1	)
Euro-denominated notes	(183		)		520				(193		)		—				—				—

⁽¹⁾ No amounts were reclassified from AOCI into income related to the sale of a subsidiary.

Summary of Interest Rate Derivatives

At December 31, 2018, the Company was a party to 19 pay-floating, receive-fixed interest rate swap contracts designated as fair value hedges of fixed-rate notes in which the notional amounts match the amount of the hedged fixed-rate notes as detailed in the table below.

	2018
Debt Instrument	Par Value of Debt				Number of Interest Rate Swaps Held			Total Swap Notional Amount
1.85% notes due 2020	$	1,250			5			$	1,250
3.875% notes due 2021	1,150				5			1,150
2.40% notes due 2022	1,000				4			1,000
2.35% notes due 2022	1,250				5			1,250

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]

The table below presents the location of amounts recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges as of December 31:

	Carrying Amount of Hedged Liabilities								Cumulative Amount of Fair Value Hedging Adjustment Increase (Decrease) Included in the Carrying Amount
	2018				2017				2018				2017
Balance Sheet Line Item in which Hedged Item is Included
Loans payable and current portion of long-term debt	$	—			$	983			$	—			$	(17	)
Long-Term Debt (1)	4,560				5,146				(82		)		(41		)

⁽¹⁾ Amounts include hedging adjustment gains related to discontinued hedging relationships of $11 million at December 31, 2017.

Fair Value of Derivatives on a Gross Basis Segregated Between those Derivatives that are Designated as Hedging Instruments and those that are Not Designated as Hedging Instruments

Presented in the table below is the fair value of derivatives on a gross basis segregated between those derivatives that are designated as hedging instruments and those that are not designated as hedging instruments as of December 31:

			2018												2017
			Fair Value of Derivative								U.S. Dollar Notional				Fair Value of Derivative								U.S. Dollar Notional
	Balance Sheet Caption		Asset				Liability								Asset				Liability
Derivatives Designated as Hedging Instruments
Interest rate swap contracts	Other assets		$	—			$	—			$	—			$	2			$	—			$	550
Interest rate swap contracts	Accrued and other current liabilities		—				—				—				—				3				1,000
Interest rate swap contracts	Other noncurrent liabilities		—				81				4,650				—				52				4,650
Foreign exchange contracts	Other current assets		263				—				6,222				51				—				4,216
Foreign exchange contracts	Other assets		75				—				2,655				38				—				1,936
Foreign exchange contracts	Accrued and other current liabilities		—				7				774				—				71				2,014
Foreign exchange contracts	Other noncurrent liabilities		—				1				89				—				1				20
			$	338			$	89			$	14,390			$	91			$	127			$	14,386
Derivatives Not Designated as Hedging Instruments
Foreign exchange contracts	Other current assets		$	116			$	—			$	5,430			$	39			$	—			$	3,778
Foreign exchange contracts	Accrued and other current liabilities		—				71				9,922				—				90				7,431
			$	116			$	71			$	15,352			$	39			$	90			$	11,209
			$	454			$	160			$	29,742			$	130			$	217			$	25,595

Information on Derivative Positions Subject to Master Netting Arrangements as if they were Presented on a Net Basis

The following table provides information on the Company’s derivative positions subject to these master netting arrangements as if they were presented on a net basis, allowing for the right of offset by counterparty and cash collateral exchanged per the master agreements and related credit support annexes at December 31:

	2018								2017
	Asset				Liability				Asset				Liability
Gross amounts recognized in the consolidated balance sheet	$	454			$	160			$	130			$	217
Gross amount subject to offset in master netting arrangements not offset in the consolidated balance sheet	(121		)		(121		)		(94		)		(94		)
Cash collateral received	(107		)		—				(3		)		—
Net amounts	$	226			$	39			$	33			$	123

Location and Pretax Gain or Loss Amounts for Derivatives

The table below provides information regarding the location and amount of pretax (gains) losses of derivatives designated in fair value or cash flow hedging relationships:

	Sales												Other (income) expense, net (1)										Other comprehensive income (loss)
Years Ended December 31	2018				2017				2016				2018				2017			2016			2018				2017				2016
Financial Statement Line Items in which Effects of Fair Value or Cash Flow Hedges are Recorded	$	42,294			$	40,122			$	39,807			$	(402	)		(500	)		189			$	(361	)		$	316			$	(1,078	)
(Gain) loss on fair value hedging relationships
Interest rate swap contracts
Hedged items	—				—				—				(27		)		(48	)		(29	)		—				—				—
Derivatives designated as hedging instruments	—				—				—				50				12			(35	)		—				—				—
Impact of cash flow hedging relationships
Foreign exchange contracts
Amount of gain (loss) recognized in OCI on derivatives	—				—				—				—				—			—			228				(562		)		210
(Decrease) increase in Sales as a result of AOCI reclassifications	(160		)		138				311				—				—			—			160				(138		)		(311		)

⁽¹⁾ Interest expense is a component of Other (income) expense, net.

Income Statement Effects of Derivatives Not Designated as Hedging Instruments

The table below provides information regarding the income statement effects of derivatives not designated as hedging instruments:

				Amount of Derivative Pretax (Gain) Loss Recognized in Income
Years Ended December 31		Income Statement Caption		2018				2017				2016
Derivatives Not Designated as Hedging Instruments
Foreign exchange contracts (1)		Other (income) expense, net		$	(260	)		$	110			$	132
Foreign exchange contracts (2)		Sales		(8		)		(3		)		—

⁽¹⁾ These derivative contracts mitigate changes in the value of remeasured foreign currency denominated monetary assets and liabilities attributable to changes in foreign currency exchange rates.

⁽²⁾ These derivative contracts serve as economic hedges of forecasted transactions.

Information on Investments in Debt and Equity Securities

Information on investments in debt and equity securities at December 31 is as follows:

	2018																2017
	Fair Value				Amortized Cost				Gross Unrealized								Fair Value				Amortized Cost				Gross Unrealized
									Gains				Losses												Gains				Losses
Corporate notes and bonds	$	4,920			$	4,985			$	3			$	(68	)		$	9,806			$	9,837			$	9			$	(40	)
Asset-backed securities	1,275				1,285				1				(11		)		1,542				1,548				1				(7		)
U.S. government and agency securities	892				895				2				(5		)		2,042				2,059				—				(17		)
Foreign government bonds	166				167				—				(1		)		733				739				—				(6		)
Mortgage-backed securities	8				8				—				—				626				634				1				(9		)
Commercial paper	—				—				—				—				159				159				—				—
Total debt securities	7,261				7,340				6				(85		)		14,908				14,976				11				(79		)
Publicly traded equity securities (1)	456																275				265				16				(6		)
Total debt and publicly traded equity securities	$	7,717															$	15,183			$	15,241			$	27			$	(85	)

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Financial assets and liabilities measured at fair value on a recurring basis at December 31 are summarized below:

	Fair Value Measurements Using																Fair Value Measurements Using
	Quoted Prices In Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)				Total				Quoted Prices In Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)				Total
	2018																2017
Assets
Investments
Corporate notes and bonds	$	—			$	4,835			$	—			$	4,835			$	—			$	9,678			$	—			$	9,678
Asset-backed securities (1)	—				1,253				—				1,253				—				1,476				—				1,476
U.S. government and agency securities	—				731				—				731				68				1,767				—				1,835
Foreign government bonds	—				166				—				166				—				732				—				732
Mortgage-backed securities	—				—				—				—				—				547				—				547
Commercial paper	—				—				—				—				—				159				—				159
Publicly traded equity securities	147				—				—				147				104				—				—				104
	147				6,985				—				7,132				172				14,359				—				14,531
Other assets (2)
U.S. government and agency securities	55				106				—				161				—				207				—				207
Corporate notes and bonds	—				85				—				85				—				128				—				128
Asset-backed securities (1)	—				22				—				22				—				66				—				66
Mortgage-backed securities	—				8				—				8				—				79				—				79
Foreign government bonds	—				—				—				—				—				1				—				1
Publicly traded equity securities	309				—				—				309				171				—				—				171
	364				221				—				585				171				481				—				652
Derivative assets (3)
Forward exchange contracts	—				241				—				241				—				48				—				48
Purchased currency options	—				213				—				213				—				80				—				80
Interest rate swaps	—				—				—				—				—				2				—				2
	—				454				—				454				—				130				—				130
Total assets	$	511			$	7,660			$	—			$	8,171			$	343			$	14,970			$	—			$	15,313
Liabilities
Other liabilities
Contingent consideration	$	—			$	—			$	788			$	788			$	—			$	—			$	935			$	935
Derivative liabilities (3)
Interest rate swaps	—				81				—				81				—				55				—				55
Forward exchange contracts	—				74				—				74				—				162				—				162
Written currency options	—				5				—				5				—				—				—				—
	—				160				—				160				—				217				—				217
Total liabilities	$	—			$	160			$	788			$	948			$	—			$	217			$	935			$	1,152

⁽¹⁾  Primarily all of the asset-backed securities are highly-rated (Standard & Poor’s rating of AAA and Moody’s Investors Service rating of Aaa), secured primarily by auto loan, credit card and student loan receivables, with weighted-average lives of primarily 5 years or less.

⁽²⁾  Investments included in other assets are restricted as to use, primarily for the payment of benefits under employee benefit plans.

⁽³⁾  The fair value determination of derivatives includes the impact of the credit risk of counterparties to the derivatives and the Company’s own credit risk, the effects of which were not significant.

Summarized Information about the Changes in Liabilities for Contingent Consideration

Summarized information about the changes in liabilities for contingent consideration is as follows:

	2018				2017
Fair value January 1	$	935			$	891
Changes in estimated fair value (1)	89				141
Additions	8				3
Payments	(244		)		(100		)
Fair value December 31 (2)	$	788			$	935

⁽¹⁾ Recorded in Research and development expenses, Cost of sales and Other (income) expense, net. Includes cumulative translation adjustments.

⁽²⁾ Balance at December 31, 2018 includes $89 million recorded as a current liability for amounts expected to be paid within the next 12 months.

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