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Derivative Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of classification and fair value of derivative instruments The following table summarizes the classification and fair values of derivative instruments in our Condensed Consolidated Balance Sheets (in millions):
 
 
March 31, 2020
 
 
Asset Derivatives
 
Liability Derivatives
 
 
Classification
 
Fair Value
 
Classification
 
Fair Value
Derivatives designated as hedges:
 
 
 
 
 
 
 
 
Foreign currency exchange contracts
 
Other current assets
 
$
68

 
Other accrued liabilities
 
$
(4
)
Foreign currency exchange contracts
 
Other long-term assets
 
7

 
Other long-term obligations
 
(1
)
Total derivatives designated as hedges
 
 
 
75

 
 
 
(5
)
Derivatives not designated as hedges:
 
 
 
 

 
 
 
 

Foreign currency exchange contracts
 
Other current assets
 
1

 
Other accrued liabilities
 
—

Total derivatives not designated as hedges
 
 
 
1

 
 
 
—

Total derivatives
 
 
 
$
76

 
 
 
$
(5
)
 
 
December 31, 2019
 
 
Asset Derivatives
 
Liability Derivatives
 
 
Classification
 
Fair Value
 
Classification
 
Fair Value
Derivatives designated as hedges:
 
 
 
 
 
 
 
 
Foreign currency exchange contracts
 
Other current assets
 
$
36

 
Other accrued liabilities
 
$
(6
)
Foreign currency exchange contracts
 
Other long-term assets
 
—

 
Other long-term obligations
 
(2
)
Total derivatives designated as hedges
 
 
 
36

 
 
 
(8
)
Derivatives not designated as hedges:
 
 
 
 

 
 
 
 

Foreign currency exchange contracts
 
Other current assets
 
1

 
Other accrued liabilities
 
—

Total derivatives not designated as hedges
 
 
 
1

 
 
 
—

Total derivatives
 
 
 
$
37

 
 
 
$
(8
)
Summary of effect of foreign currency exchange contracts
The following table summarizes the effect of our foreign currency exchange contracts on our Condensed Consolidated Financial Statements (in millions):
 
 
Three Months Ended
 
 
March 31,
 
 
2020
 
2019
Derivatives designated as hedges:
 
 
 
 
Gains recognized in AOCI
 
$
66

 
$
28

Gains reclassified from AOCI into product sales
 
27

 
29

Derivatives not designated as hedges:
 
 
 
 
Gains (losses) recognized in Other income (expense), net
 
$
24

 
$
(6
)
Summary of potential effect of offsetting derivatives The following table summarizes the potential effect of offsetting our foreign currency exchange contracts on our Condensed Consolidated Balance Sheets (in millions):
 
 
 
 
 
 
 
 
Gross Amounts Not Offset
on our Condensed
Consolidated Balance Sheets
 
 
Description
 
Gross Amounts
 of Recognized
Assets/Liabilities
 
Gross Amounts
 Offset on our
Condensed
Consolidated
Balance Sheets
 
Amounts of Assets/Liabilities Presented
 on our Condensed Consolidated
Balance Sheets
 
Derivative
Financial
Instruments
 
Cash Collateral
Received/
Pledged
 
Net Amount
 (Legal Offset)
As of March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
 
$
76

 
$
—

 
$
76

 
$
(5
)
 
$
—

 
$
71

Derivative liabilities
 
(5
)
 
—

 
(5
)
 
5

 
—

 
—

As of December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
 
$
37

 
$
—

 
$
37

 
$
(6
)
 
$
—

 
$
31

Derivative liabilities
 
(8
)
 
—

 
(8
)
 
7

 
—

 
(1
)