Derivative financial instruments (Tables)

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table summarizes the classification and fair values of derivative instruments on our Consolidated Balance Sheets (in millions):



	December 31, 2017
	Asset Derivatives			Liability Derivatives
	Classification	Fair Value		Classification	Fair Value
Derivatives designated as hedges:
Foreign currency exchange contracts	Other current assets	$	2	Other accrued liabilities	$	(89	)
Foreign currency exchange contracts	Other long-term assets	1		Other long-term obligations	(3		)
Total derivatives designated as hedges		3			(92		)
Derivatives not designated as hedges:
Foreign currency exchange contracts	Other current assets	10		Other accrued liabilities	(1		)
Total derivatives not designated as hedges		10			(1		)
Total derivatives		$	13		$	(93	)



	December 31, 2016
	Asset Derivatives			Liability Derivatives
	Classification	Fair Value		Classification	Fair Value
Derivatives designated as hedges:
Foreign currency exchange contracts	Other current assets	$	225	Other accrued liabilities	$	(1	)
Foreign currency exchange contracts	Other long-term assets	20		Other long-term obligations	—
Total derivatives designated as hedges		245			(1		)
Derivatives not designated as hedges:
Foreign currency exchange contracts	Other current assets	81		Other accrued liabilities	(34		)
Foreign currency exchange contracts	Other long-term assets	10		Other long-term obligations	(2		)
Total derivatives not designated as hedges		91			(36		)
Total derivatives		$	336		$	(37	)

Summary of the effect of foreign currency exchange contracts on consolidated statements of income

The following table summarizes the effect of our foreign currency exchange contracts on our Consolidated Financial Statements (in millions):



	Year Ended December 31,
	2017			2016			2015
Derivatives designated as hedges:
Gains (losses) recognized in AOCI (effective portion)	$	(315	)	$	5		$	410
Gains (losses) reclassified from AOCI into product sales (effective portion)	$	(28	)	$	73		$	602
Gains (losses) recognized in Other income (expense), net (ineffective portion and amounts excluded from effectiveness testing)	$	41		$	(32	)	$	13
Derivatives not designated as hedges:
Gains (losses) recognized in Other income (expense), net	$	(113	)	$	206		$	117

Derivatives Offsetting

The following table summarizes the potential effect of offsetting derivatives by type of financial instrument on our Consolidated Balance Sheets (in millions):



As of December 31, 2017
Offsetting of Derivative Assets/Liabilities
									Gross Amounts Not Offset on the Consolidated Balance Sheets
Description	Gross Amounts of Recognized Assets/Liabilities			Gross Amounts Offset on the Consolidated Balance Sheets		Amounts of Assets/Liabilities Presented on the Consolidated Balance Sheets			Derivative Financial Instruments			Cash Collateral Received/Pledged		Net Amount (Legal Offset)
Derivative assets	$	13		$	—	$	13		$	(8	)	$	—	$	5
Derivative liabilities	(93		)	—		(93		)	8			—		(85		)

As of December 31, 2016
Offsetting of Derivative Assets/Liabilities
									Gross Amounts Not Offset on the Consolidated Balance Sheets
Description	Gross Amounts of Recognized Assets/Liabilities			Gross Amounts Offset on the Consolidated Balance Sheets		Amounts of Assets/Liabilities Presented on the Consolidated Balance Sheets			Derivative Financial Instruments			Cash Collateral Received/Pledged		Net Amount (Legal Offset)
Derivative assets	$	336		$	—	$	336		$	(37	)	$	—	$	299
Derivative liabilities	(37		)	—		(37		)	37			—		—