XML 24 R11.htm IDEA: XBRL DOCUMENT
v3.21.2

Derivative Instruments | 6 Months Ended
--- | ---
Jun. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | DERIVATIVE INSTRUMENTSWe use operational and economic hedges, foreign currency exchange forward contracts, net investment hedges (both derivative and non-derivative financial instruments) and interest rate derivative instruments to manage the impact of currency exchange and interest rate fluctuations on earnings, cash flow and equity. We do not enter into derivative instruments for speculative purposes. We are exposed to potential credit loss in the event of nonperformance by our counterparties on our outstanding derivative instruments but do not anticipate nonperformance by any of our counterparties. Should a counterparty default, our maximum loss exposure is the asset balance of the instrument. We have not changed our hedging strategies, accounting practices or objectives from those disclosed in our Annual Report on Form 10-K for 2020. Foreign Currency Hedges
June 2021 | Cash Flow | Net Investment | Non-Designated | Total
Gross notional amount | $ | 950 |  | $ | 1,792 |  | $ | 5,339 |  | $ | 8,081 |
Maximum term in days |  |  |  | 1612
Fair value: |  |  |  |
Other current assets | $ | 11 |  | $ | — |  | $ | 43 |  | $ | 54 |
Other noncurrent assets | 1 |  | 22 |  | — |  | 23 |
Other current liabilities | (16) |  | — |  | (14) |  | (30) |
Other noncurrent liabilities | (1) |  | (7) |  | — |  | (8) |
Total fair value | $ | (5) |  | $ | 15 |  | $ | 29 |  | $ | 39 |
December 2020 | Cash Flow | Net Investment | Non-Designated | Total
Gross notional amount | $ | 949 |  | $ | 1,828 |  | $ | 5,382 |  | $ | 8,159 |
Maximum term in days |  |  |  | 1793
Fair value: |  |  |  |
Other current assets | $ | 9 |  | $ | — |  | $ | 7 |  | $ | 16 |
Other noncurrent assets | — |  | 4 |  | — |  | 4 |
Other current liabilities | (12) |  | — |  | (121) |  | (133) |
Other noncurrent liabilities | (1) |  | (26) |  | — |  | (27) |
Total fair value | $ | (4) |  | $ | (22) |  | $ | (114) |  | $ | (140) |
We have €1,500 in certain forward currency contracts designated as net investment hedges to hedge a portion of our investments in certain of our entities with functional currencies denominated in Euros. In addition to these derivative financial instruments designated as net investment hedges, we have designated €4,350 of senior unsecured notes as net investment hedges to selectively hedge portions of our investment in certain international subsidiaries. The currency effects of our Euro-denominated senior unsecured notes are reflected in AOCI within shareholders' equity where they offset gains and losses recorded on our net investment in international subsidiaries. On June 30, 2021 the total after tax gain (loss) in AOCI related to designated net investment hedges was ($291). Net Currency Exchange Rate Gains (Losses)
|  | Three Months |  | Six Months
Derivative instrument: | Recorded in: | 2021 | 2020 |  | 2021 | 2020
Cash Flow | Cost of sales | $ | (4) |  | $ | 3 |  |  | $ | (5) |  | $ | — |
Net Investment | Other income (expense), net | 9 |  | 7 |  |  | 17 |  | 14 |
Non-Designated | Other income (expense), net | 1 |  | (2) |  |  | (1) |  | (9) |
| Total | $ | 6 |  | $ | 8 |  |  | $ | 11 |  | $ | 5 |
Pretax gains (losses) on derivatives designated as cash flow hedges of ($9) and net investment hedges of $33 recorded in AOCI are expected to be reclassified to cost of sales and other income (expense) in earnings within 12 months as of June 30, 2021. This cash flow hedge reclassification is primarily due to the sale of inventory that includes previously hedged purchases. A component of the AOCI amounts related to net investment hedges is reclassified over the life of the hedge instruments as we elected to exclude the initial value of the component related to the spot-forward difference from the effectiveness assessment. Interest Rate Hedges In the six months 2021 a loss of $11 was reclassified from AOCI to earnings relating to the termination of forward starting interest rate swaps with notional amounts of $750 designated as cash flow hedges as we now consider it probable that the original forecasted debt issuances will not occur. Pretax gains of $5 recorded in AOCI related to other interest rate hedges closed in conjunction with debt issuances are expected to be reclassified to other income (expense) in earnings within 12 months of June 30, 2021. The cash flow effect of interest rate hedges is recorded in cash flow from operations.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration