Derivative instruments (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of notional amounts and interest rates for cross-currency swaps

The notional amounts and interest rates of our cross-currency swaps as of March 31, 2018, were as follows (notional amounts in millions):



	Foreign currency				U.S. dollars
Hedged notes	Notional amount		Interest rate		Notional amount		Interest rate
2.125% 2019 euro Notes	€	675	2.125	%	$	864	2.6	%
1.25% 2022 euro Notes	€	1,250	1.25	%	$	1,388	3.2	%
0.41% 2023 Swiss franc Bonds	CHF	700	0.41	%	$	704	3.4	%
2.00% 2026 euro Notes	€	750	2.00	%	$	833	3.9	%
5.50% 2026 pound sterling Notes	£	475	5.50	%	$	747	6.0	%
4.00% 2029 pound sterling Notes	£	700	4.00	%	$	1,111	4.5	%

Effective portion of the unrealized gain (loss) recognized in Other Comprehensive Income for our derivative instruments designated as cash flow hedges

The effective portions of unrealized gains and losses recognized in AOCI for our derivative instruments designated as cash flow hedges were as follows (in millions):



	Three months ended March 31,
Derivatives in cash flow hedging relationships	2018			2017
Foreign currency contracts	$	(89	)	$	(47	)
Cross-currency swap contracts	238			64
Total unrealized gains	$	149		$	17

Location in the Condensed Consolidated Statements of Income and the effective portion of gain (loss) reclassified from Accumulated Other Comprehensive Income into earnings for our derivative instruments designated as cash flow hedges

The locations in the Condensed Consolidated Statements of Income and the effective portions of the gains and losses reclassified out of AOCI and into earnings for our derivative instruments designated as cash flow hedges were as follows (in millions):



		Three months ended March 31,
Derivatives in cash flow hedging relationships	Condensed Consolidated Statements of Income location	2018			2017
Foreign currency contracts	Product sales	$	(34	)	$	57
Cross-currency swap contracts	Interest and other income, net	164			74
Total realized gains		$	130		$	131

Derivatives in fair value hedging relationships

The following table presents such net unrealized gains and losses (in millions):



	Three months ended March 31,
Derivatives in fair value hedging relationships	2018			2017
Net unrealized losses recognized for interest rate swap contracts	$	(164	)	$	(19	)
Net unrealized gains recognized for related hedged debt	$	164		$	19

Location in the Condensed Consolidated Statements of Income and the amount of gain (loss) recognized in earnings for the derivative instruments not designated as hedging instruments

The location in the Condensed Consolidated Statements of Income and the amounts of gains recognized in earnings for our derivative instruments not designated as hedging instruments were as follows (in millions):



		Three months ended March 31,
Derivatives not designated as hedging instruments	Condensed Consolidated Statements of Income location	2018		2017
Foreign currency contracts	Interest and other income, net	$	7	$	1

Fair values of derivatives included in the Condensed Consolidated Balance Sheets

The fair values of derivatives included in the Condensed Consolidated Balance Sheets were as follows (in millions):



	Derivative assets			Derivative liabilities
March 31, 2018	Condensed Consolidated Balance Sheet location	Fair value		Condensed Consolidated Balance Sheet location	Fair value
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current assets/ Other assets	$	17	Accrued liabilities/ Other noncurrent liabilities	$	259
Cross-currency swap contracts	Other current assets/ Other assets	433		Accrued liabilities/ Other noncurrent liabilities	148
Interest rate swap contracts	Other current assets/ Other assets	—		Accrued liabilities/ Other noncurrent liabilities	215
Total derivatives designated as hedging instruments		$	450		$	622



	Derivative assets			Derivative liabilities
December 31, 2017	Condensed Consolidated Balance Sheet location	Fair value		Condensed Consolidated Balance Sheet location	Fair value
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current assets/ Other assets	$	6	Accrued liabilities/ Other noncurrent liabilities	$	204
Cross-currency swap contracts	Other current assets/ Other assets	270		Accrued liabilities/ Other noncurrent liabilities	220
Interest rate swap contracts	Other current assets/ Other assets	10		Accrued liabilities/ Other noncurrent liabilities	61
Total derivatives designated as hedging instruments		$	286		$	485