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Financial Instruments, Derivatives and Fair Value Measures (Tables)
6 Months Ended
Jun. 30, 2021
Financial Instruments, Derivatives and Fair Value Measures  
Summary of the amounts and location of certain derivative financial instruments

Fair Value - Assets

Fair Value - Liabilities

June 30,

Dec. 31,

June 30, 

Dec. 31,

    

(in millions)

    

2021

    

2020

    

Balance Sheet Caption

    

2021

    

2020

    

Balance Sheet Caption

Interest rate swaps designated as fair value hedges

$

143

 

$

210

 

Deferred income taxes and other assets

 

$

 

$

 

Post-employment obligations, deferred income taxes and other long-term liabilities

Foreign currency forward exchange contracts:

Hedging instruments

 

98

 

30

 

Prepaid expenses and other receivables

 

151

 

433

 

Other accrued liabilities

Others not designated as hedges

 

43

 

60

 

Prepaid expenses and other receivables

 

67

 

65

 

Other accrued liabilities

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

n/a

540

577

Long-term debt

$

284

 

$

300

 

$

758

 

$

1,075

Schedule of derivatives gain (loss) in OCI and earnings

Gain (loss) Recognized in Other

Income (expense) and Gain (loss)

Comprehensive Income (loss)

Reclassified into Income

Three Months

Six Months

Three Months

Six Months

Ended June 30

Ended June 30

Ended June 30

Ended June 30

(in millions)

    

2021

    

2020

    

2021

    

2020

    

2021

    

2020

    

2021

    

2020

    

Income Statement Caption

Foreign currency forward exchange contracts designated as cash flow hedges

$

(88)

$

(89)

$

46

$

138

$

(92)

$

31

$

(115)

$

42

Cost of products sold

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

 

2

 

(2)

 

37

 

(10)

 

 

 

 

 

n/a

Interest rate swaps designated as fair value hedges

 

n/a

 

n/a

 

n/a

 

n/a

 

2

 

27

 

(67)

 

195

 

Interest expense

Schedule of carrying values and fair values of certain financial instruments

June 30, 2021

December 31, 2020

    

Carrying

    

Fair

    

Carrying

    

Fair

(in millions)

Value

Value

Value

Value

Long-term Investment Securities:

 

 

Equity securities

$

754

$

754

$

776

$

776

Other

 

51

 

51

 

45

 

45

Total Long-term Debt

(18,302)

(21,592)

(18,534)

(22,809)

Foreign Currency Forward Exchange Contracts:

 

 

 

Receivable position

 

141

 

141

 

90

 

90

(Payable) position

(218)

(218)

(498)

(498)

Interest Rate Hedge Contracts:

 

 

 

 

Receivable position

143

143

210

210

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

June 30, 2021:

Equity securities

$

403

$

403

 

$

 

$

Interest rate swap derivative financial instruments

 

143

 

 

143

 

Foreign currency forward exchange contracts

 

141

 

 

141

 

Total Assets

$

687

 

$

403

 

$

284

 

$

Fair value of hedged long-term debt

$

2,982

$

 

$

2,982

 

$

Foreign currency forward exchange contracts

218

218

Contingent consideration related to business combinations

 

67

 

 

 

67

Total Liabilities

$

3,267

 

$

 

$

3,200

$

67

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