Fair Value Measurements | 3 Months Ended |
Mar. 31, 2014 |
Fair Value Disclosures [Abstract] | ' |
Fair Value Disclosures [Text Block] | ' |
FAIR VALUE MEASUREMENTS |
Our valuation of our assets and liabilities measured at fair value is: |
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| Total | | Level 1 | | Level 2 | | Level 3 | | | | | | | |
| March | 31-Dec | | March | 31-Dec | | March | 31-Dec | | March | 31-Dec | | | | | | | |
| 2014 | 2013 | | 2014 | 2013 | | 2014 | 2013 | | 2014 | 2013 | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | $ | 1,381 | | $ | 1,339 | | | $ | 1,381 | | $ | 1,339 | | | $ | — | | $ | — | | | $ | — | | $ | — | | | | | | | | |
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Available-for-sale marketable securities | | | | | | | | | | | | | | | | | | |
Corporate and asset-backed debt securities | 1,172 | | 1,177 | | | — | | — | | | 1,172 | | 1,177 | | | — | | — | | | | | | | | |
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Foreign government debt securities | 828 | | 845 | | | — | | — | | | 828 | | 845 | | | — | | — | | | | | | | | |
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United States agency debt securities | 124 | | 211 | | | — | | — | | | 124 | | 211 | | | — | | — | | | | | | | | |
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United States treasury debt securities | 487 | | 350 | | | — | | — | | | 487 | | 350 | | | — | | — | | | | | | | | |
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Certificates of deposit | 51 | | 53 | | | — | | — | | | 51 | | 53 | | | — | | — | | | | | | | | |
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Other | 4 | | 5 | | | — | | — | | | 4 | | 5 | | | — | | — | | | | | | | | |
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Total available-for-sale marketable securities | 2,666 | | 2,641 | | | — | | — | | | 2,666 | | 2,641 | | | — | | — | | | | | | | | |
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Trading marketable securities | 74 | | 72 | | | 74 | | 72 | | | — | | — | | | — | | — | | | | | | | | |
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Foreign currency exchange forward contracts | 17 | | 25 | | | — | | — | | | 17 | | 25 | | | — | | — | | | | | | | | |
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| $ | 4,138 | | $ | 4,077 | | | $ | 1,455 | | $ | 1,411 | | | $ | 2,683 | | $ | 2,666 | | | $ | — | | $ | — | | | | | | | | |
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Liabilities: | | | | | | | | | | | | | | | | | | |
Deferred compensation arrangements | $ | 74 | | $ | 72 | | | $ | 74 | | $ | 72 | | | $ | — | | $ | — | | | $ | — | | $ | — | | | | | | | | |
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Contingent consideration | 47 | | 59 | | | — | | — | | | — | | — | | | 47 | | 59 | | | | | | | | |
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Foreign currency exchange forward contracts | 6 | | 2 | | | — | | — | | | 6 | | 2 | | | — | | — | | | | | | | | |
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| $ | 127 | | $ | 133 | | | $ | 74 | | $ | 72 | | | $ | 6 | | $ | 2 | | | $ | 47 | | $ | 59 | | | | | | | | |
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We calculate the fair value of our Level 1 and Level 2 instruments based on the exchange traded price of similar or identical instruments, where available, or based on other observable inputs taking into account our credit risk and that of our counterparties. The fair value of our Level 3 liabilities represent milestone payments for acquisitions and is calculated as the net present value of expected cash flows (using a discounted cash flow technique) based on externally provided or obtained inputs, including our probability assessments of the occurrence of triggering events, appropriately discounted considering the uncertainties associated with the obligation. We remeasure this liability each reporting period and record the changes in the fair value in general and administrative expense (for probability of occurrence) and other income (expense) (for changes in time value of money) in earnings. During the period we evaluated but did not change our unobservable input assumptions and fair value techniques used in measuring the fair value of any financial assets or liabilities from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2013. There were no significant transfers into or out of any levels that occurred between December 31, 2013 and March 31, 2014. |
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Rollforward of liabilities measured at fair value using unobservable inputs (Level 3): |
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| March | | December | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2014 | | 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at the beginning of the period | $ | 59 | | | $ | 103 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Losses included in earnings | — | | | (5 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Settlements | (12 | ) | | (39 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at the end of the period | $ | 47 | | | $ | 59 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Summary of marketable securities: | | | | | | | | | | | | | | | | | | |
| Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Estimated Fair Value | | | | | | | |
| March | December | | March | December | | March | December | | March | December | | | | | | | |
| 2014 | 2013 | | 2014 | 2013 | | 2014 | 2013 | | 2014 | 2013 | | | | | | | |
Available-for-sale marketable securities: | | | | | | | | | | | | | | | | | | |
Corporate and asset-backed debt securities | $ | 1,171 | | $ | 1,177 | | | $ | 2 | | $ | 1 | | | $ | (1 | ) | $ | (1 | ) | | $ | 1,172 | | $ | 1,177 | | | | | | | | |
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Foreign government debt securities | 826 | | 846 | | | 2 | | — | | | — | | (1 | ) | | 828 | | 845 | | | | | | | | |
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United States agency debt securities | 124 | | 211 | | | — | | — | | | — | | — | | | 124 | | 211 | | | | | | | | |
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United States treasury debt securities | 487 | | 350 | | | — | | — | | | — | | — | | | 487 | | 350 | | | | | | | | |
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Certificates of deposit | 51 | | 53 | | | — | | — | | | — | | — | | | 51 | | 53 | | | | | | | | |
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Other | 4 | | 5 | | | — | | — | | | — | | — | | | 4 | | 5 | | | | | | | | |
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Total available-for-sale marketable securities | $ | 2,663 | | $ | 2,642 | | | $ | 4 | | $ | 1 | | | $ | (1 | ) | $ | (2 | ) | | 2,666 | | 2,641 | | | | | | | | |
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Trading marketable securities | | | | | | | | | | 74 | | 72 | | | | | | | | |
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Total marketable securities | | | | | | | | | | $ | 2,740 | | $ | 2,713 | | | | | | | | |
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Reported as: | | | | | | | | | | | | | | | | | | |
Current assets-marketable securities | | | | | | | | | | $ | 2,666 | | $ | 2,641 | | | | | | | | |
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Noncurrent assets-other | | | | | | | | | | 74 | | 72 | | | | | | | | |
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| | | | | | | | | | $ | 2,740 | | $ | 2,713 | | | | | | | | |
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The unrealized losses on available-for-sale marketable securities at March 31, 2014 were primarily caused by increases in yields as a result of the rise in government benchmark rates. Less than 1% of our investments in available-for-sale securities had a credit quality rating of less than A2 (Moody's), A (Standard & Poors) and A (Fitch). We do not intend 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; accordingly, we do not consider these investments to be other-than-temporarily impaired at March 31, 2014. |
The cost and estimated fair value of available-for-sale marketable securities at March 31, 2014 by contractual maturity are: |
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| | Cost | | Estimated | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fair Value | | | | | | | | | | | | | | | | | | | | | | | | | | |
Due in one year or less | | $ | 522 | | | $ | 521 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Due after one year through three years | | 1,905 | | | 1,908 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Due after three years | | 236 | | | 237 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| | $ | 2,663 | | | $ | 2,666 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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The gross unrealized losses and fair value of our investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at March 31, 2014 are: |
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| Corporate and Asset-Backed Debt Securities | | Foreign Government Debt Securities | | United States Agency Debt Securities | | Other | | Total |
| Less Than 12 Months | Total | | Less Than 12 Months | Total | | Less Than 12 Months | Total | | Less Than 12 Months | Total | | Less Than 12 Months | Total |
Number of investments | 170 | | 173 | | | 86 | | 93 | | | 46 | | 46 | | | 114 | | 115 | | | 416 | | 427 | |
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Fair value | $ | 389 | | $ | 396 | | | $ | 490 | | $ | 576 | | | $ | 228 | | $ | 228 | | | $ | 15 | | $ | 15 | | | $ | 1,122 | | $ | 1,215 | |
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Unrealized losses | $ | (1 | ) | $ | (1 | ) | | $ | — | | $ | — | | | $ | — | | $ | — | | | $ | — | | $ | — | | | $ | (1 | ) | $ | (1 | ) |
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Upon the sale of a security classified as available-for-sale, the security’s specific unrealized gain (loss) is reclassified out of AOCI into earnings based on the specific identification method. Interest and marketable securities income was $6 and $5 for the three months ended March 31, 2014 and 2013, respectively, and is included in other income (expense). |