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Designated Non- Designated Total 2015 Gross notional amount $ 889 $ 4,061 $ 4,950 Maximum term in days 546 Fair value: Other current assets $ 27 $ 41 $ 68 Other noncurrent assets 1 — 1 Other current liabilities (6) (3) (9) Other noncurrent liabilities (1) — (1) Total fair value $ 21 $ 38 $ 59 2014 Gross notional amount $ 357 $ 2,085 $ 2,442 Maximum term in days 546 Fair value: Other current assets $ 18 $ 12 $ 30 Other noncurrent assets 2 — 2 Other current liabilities — (12) (12) Total fair value $ 20 $ — $ 20 We are exposed to credit loss in the event of nonperformance by counterparties on our outstanding forward currency exchange contracts but do not anticipate nonperformance by any of our counterparties. Should a counterparty default, our maximum exposure to loss is the asset balance of the instrument. Net Currency Exchange Rate Gains (Losses) Recorded in: 2015 2014 2013 Cost of sales $ 19 $ 1 $ — Other income (expense), net (22) (8) 3 Total $ (3) $ (7) $ 3 On December 31, 2015 and 2014 pretax gains on derivatives designated as hedges of $17 and $15, which are recorded in AOCI, are expected to be reclassified to earnings during the next 12 months. This reclassification is primarily due to the sale of inventory that includes previously hedged purchases. There have been no ineffective portions of derivatives that have resulted in gains or losses in any of the periods presented. Interest Rate Risk on Future Debt Issuance Forward starting interest rate derivative instruments designated as cash flow hedges are used to manage the exposure to interest rate volatility with regard to future issuance and refinancing of debt. The effective portion of the gains or losses on forward starting interest rate derivative instruments that are designated and qualify as cash flow hedges is reported as a component of AOCI. Beginning in the period in which the debt refinancing occurs and the related derivative instruments is terminated, the effective portion of the gains or losses is then reclassified into interest expense over the term of the related debt. On December 31, 2015 we had interest rate swaps with notional amounts of $375 designated as forward starting interest rate swaps in anticipation of future debt issuances. The market value of outstanding interest rate swap agreements on December 31, 2015 was $4, which is recorded in accrued expenses and other liabilities with an offsetting amount recorded in AOCI. Upon the probable issuance of the debt, these amounts will be released to interest expense over the term of the debt. The cash flow effect of this hedge is recorded in cash flow from operations. Fair Value Hedges Interest rate derivative instruments designated as fair value hedges are used to manage the exposure to interest rate movements and to reduce borrowing costs by converting fixed-rate debt into floating- rate debt. Under these agreements we agree to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. On December 31, 2015 we had interest rate swaps in gross notional amounts of $500 designated as fair value hedges of underlying fixed rate obligations representing a portion of our $600 senior unsecured notes due in 2024. There was no hedge ineffectiveness recorded as a result of these fair value hedges. Fair Value Interest Rate Hedge Instruments 2015 2014 Gross notional amount $ 500 $ 500 Fair value: Other noncurrent assets 15 10 Long-term debt (15) (10) Total fair value $ — $ — We are exposed to credit loss in the event of nonperformance by counterparties on our outstanding derivative instruments but do not anticipate nonperformance by any of our counterparties. Should a counterparty default, our maximum exposure to loss is the asset balance of the instrument. NOTE 6 - ACQUISITIONS 2015 Acquisitions In January 2015 we acquired certain assets of CHG Hospital Beds, Inc. (CHG). CHG designs, manufactures and markets low-height hospital beds and related accessories. This acquisition enhances our product offerings within our MedSurg segment and is included in the 2015 Other column in the table below. Goodwill acquired associated with the CHG acquisition is deductible for tax purposes. 2014 Acquisitions In September 2014 we acquired certain assets of Small Bone Innovations, Inc. (SBi) for an aggregate purchase price of $365. SBi products are designed and promoted for upper and lower extremity small bone indications, with a focus on small joint replacement. The acquisition of the assets of SBi enhances our product offerings within our Orthopaedics segment. Goodwill acquired associated with the SBi acquisition is deductible for tax purposes. In April 2014 we acquired Berchtold Holding, AG (Berchtold) for an aggregate purchase price of $184. Berchtold sells surgical tables, equipment booms and surgical lighting systems. In March 2014 we acquired Patient Safety Technologies, Inc. (PST), for an aggregate purchase price of $120. PST's proprietary Safety-Sponge ® System and SurgiCount 360™ compliance software help prevent Retained Foreign Objects in the operating room. In addition the acquisition of Pivot Medical Inc. which develops and sells innovative products for hip arthroscopy and other 2014 acquisitions are included in the 2014 Other column in the table below. These acquisitions enhance our product offerings within our MedSurg segment. The measurement periods for our acquisitions in 2014 have been completed. Revisions to the original purchase price allocation were not material. The purchase price allocations for the 2015 acquisitions were based upon preliminary valuations, and our estimates and assumptions are subject to change within the measurement period. On December 31, 2015 management is in the process of verifying data and finalizing information related to the 2015 acquisitions and the valuation and recording of identifiable intangible assets, deferred income taxes and the corresponding effect on the value of goodwill. STRYKER CORPORATION 2015 Form 10-K 26 Dollar amounts in millions except per share amounts or as otherwise specified.