XML 38 R10.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Fair Value Measurements | 12 Months Ended
--- | ---
Dec. 31, 2016
Fair Value Disclosures [Abstract] |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories:
Level 1 | Quoted market prices in active markets for identical assets or liabilities.
Level 2 | Observable market-based inputs or unobservable inputs that are corroborated by market data.
Level 3 | Unobservable inputs reflecting our assumptions or external inputs from active markets.
When applying the fair value principles in the valuation of assets and liabilities, we are required to maximize the use of quoted market prices and minimize the use of unobservable inputs. We calculate the fair value of our Level 1 and Level 2 instruments based on the exchange traded price of identical or similar instruments, where available, or based on other observable inputs taking into account our credit risk and that of our counterparties. Foreign currency exchange contracts and interest rate hedges are included in Level 2 as we use inputs other than quoted prices that are observable for the asset or liability. The Level 2 derivative instruments are primarily valued using standard calculations and models that use readily observable market data as their basis. Our Level 3 liabilities represent milestone payments for acquisitions. For certain Level 3 liabilities the Black-Scholes option pricing model was used to value the liabilities, while the fair value of other liabilities was estimated using a discounted cash flow technique. Significant unobservable inputs to this technique included our probability assessments related to the occurrence of certain triggering events, appropriately discounted considering the uncertainties associated with the obligation, which we estimate to be near 100%. We remeasure the fair value of our assets and liabilities each reporting period. We record the changes in fair value within selling, general and administrative expense and the changes in the time value of money within other income (expense), net.
Assets and Liabilities Measured at Fair Value
| 2016 | 2015
Cash and cash equivalents | $ | 3,316 |  | $ | 3,379 |
Trading marketable securities | 94 |  | 82 |
Level 1 - Assets | $ | 3,410 |  | $ | 3,461 |
Available-for-sale marketable securities: |  |
Corporate and asset-backed debt securities | $ | 25 |  | $ | 214 |
Foreign government debt securities | — |  | 96 |
United States agency debt securities | 9 |  | 120 |
United States treasury debt securities | 16 |  | 264 |
Certificates of deposit | 18 |  | 8 |
Total available-for-sale marketable securities | $ | 68 |  | $ | 702 |
Foreign currency exchange forward contracts | 45 |  | 69 |
Interest rate swap asset | 57 |  | 15 |
Level 2 - Assets | $ | 170 |  | $ | 786 |
Total assets measured at fair value | $ | 3,580 |  | $ | 4,247 |
Deferred compensation arrangements | $ | 94 |  | $ | 82 |
Level 1 - Liabilities | $ | 94 |  | $ | 82 |
Foreign currency exchange forward contracts | $ | 18 |  | $ | 10 |
Interest rate swap liability | — |  | 4 |
Level 2 - Liabilities | $ | 18 |  | $ | 14 |
Contingent consideration: |  |
Beginning balance | $ | 56 |  | $ | 48 |
Additions | 49 |  | 11 |
Change in estimate | (7 | ) | — |
Settlements | (12 | ) | (3 | )
Balance at the end of the period | $ | 86 |  | $ | 56 |
Level 3 - Liabilities | $ | 86 |  | $ | 56 |
Total liabilities measured at fair value | $ | 198 |  | $ | 152 |
Fair Value of Available for Sale Securities by Maturity
| 2016 | 2015
Due in one year or less | $ | 36 |  | $ | 588 |
Due after one year through three years | $ | 32 |  | $ | 114 |
On December 31, 2016 the aggregate difference between the cost and fair value of available-for-sale marketable securities was nominal. Interest receivable was less than $1 and $2 in 2016 and 2015 related to our marketable security portfolio. The total of interest and marketable securities income was $29, $14, and $28 in 2016, 2015, and 2014. The amounts were included in other income (expense), net. Less than 1% of our investments in available-for-sale marketable securities had a credit quality rating of less than A2 (Moody's), A (Standard & Poor's) and A (Fitch). We do not plan to sell the investments, and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost basis, which may be maturity. We do not consider these investments to be other-than-temporarily impaired on December 31, 2016. On December 31, 2016 substantially all our investments with unrealized losses that were not deemed to be other-than-temporarily impaired were in a continuous unrealized loss position for less than twelve months, and the losses were nominal.
Securities in a Continuous Unrealized Loss Position
| Number of Investments | Fair Value
Corporate and Asset-Backed | 33 | $ | 11 |
United States Agency | 8 | 5 |
United States Treasury | 19 | 15 |
Certificate of Deposit | 5 | 2 |
Total | 65 | $ | 33 |

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13537-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13504-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13433-108611 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration