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Financial Instruments, Derivatives and Fair Value Measures (Tables)
12 Months Ended
Dec. 31, 2020
Financial Instruments, Derivatives and Fair Value Measures  
Summary of the amounts and location of certain derivative financial instruments

Fair Value — Assets

Fair Value — Liabilities

(in millions)

    

    

2020

    

2019

    

Balance Sheet Caption

    

2020

    

2019

    

Balance Sheet Caption

Interest rate swaps designated as fair value hedges

$

210

$

48

 

Deferred income taxes and other assets

$

$

 

Post-employment obligations and other long-term liabilities

Foreign currency forward exchange contracts:

Hedging instruments

 

30

 

110

 

Other prepaid expenses and receivables

 

433

 

56

 

Other accrued liabilities

Others not designated as hedges

 

60

 

38

Other prepaid expenses and receivables

 

65

 

33

Other accrued liabilities

Debt designated as a hedge of net investment in a foreign subsidiary

n/a

577

546

Long-term debt

$

300

$

196

$

1,075

$

635

Schedule of derivatives gain (loss) in OCI and earnings

Gain (loss) Recognized in

Income (expense) and

Other Comprehensive

Gain (loss) Reclassified

Income (loss)

into Income

(in millions)

    

2020

    

2019

    

2018

    

2020

    

2019

    

2018

    

Income Statement Caption

Foreign currency forward exchange contracts designated as cash flow hedges

$

(207)

$

9

$

73

$

102

$

79

$

(114)

Cost of products sold

Debt designated as a hedge of net investment in a foreign subsidiary

 

(31)

 

4

 

 

n/a

 

n/a

 

n/a

 

n/a

Interest rate swaps designated as fair value hedges

 

n/a

 

n/a

 

n/a

 

162

 

148

 

(97)

 

Interest expense

Schedule of carrying values and fair values of certain financial instruments

2020

2019

Carrying

Fair

Carrying

Fair

(in millions)

    

Value

    

Value

    

Value

    

Value

Long-term Investment Securities:

Equity securities

$

776

$

776

$

836

$

836

Other

 

45

 

45

 

47

 

47

Total Long-term debt

 

(18,534)

 

(22,809)

 

(17,938)

 

(20,772)

Foreign Currency Forward Exchange Contracts:

Receivable position

 

90

 

90

 

148

 

148

(Payable) position

 

(498)

 

(498)

 

(89)

 

(89)

Interest Rate Hedge Contracts:

Receivable position

 

210

 

210

 

48

 

48

(Payable) position

Schedule of assets and liabilities measured at fair value on a recurring basis

Basis of Fair Value Measurement

Quoted

Significant

Prices in

Other

Significant

Outstanding

Active

Observable

Unobservable

(in millions)

    

Balances

    

Markets

    

Inputs

    

Inputs

December 31, 2020:

Equity securities

$

386

$

386

$

$

Interest rate swap derivative financial instruments

 

210

 

 

210

 

Foreign currency forward exchange contracts

 

90

 

 

90

 

Total Assets

$

686

$

386

$

300

$

Fair value of hedged long-term debt

$

3,049

$

$

3,049

$

Foreign currency forward exchange contracts

 

498

 

 

498

 

Contingent consideration related to business combinations

 

68

 

 

 

68

Total Liabilities

$

3,615

$

$

3,547

$

68

December 31, 2019:

Equity securities

$

357

$

357

$

$

Interest rate swap derivative financial instruments

48

48

Foreign currency forward exchange contracts

 

148

 

 

148

 

Total Assets

$

553

$

357

$

196

$

Fair value of hedged long-term debt

$

2,890

$

$

2,890

$

Foreign currency forward exchange contracts

 

89

 

 

89

 

Contingent consideration related to business combinations

 

68

 

 

 

68

Total Liabilities

$

3,047

$

$

2,979

$

68