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Derivative Instruments | 12 Months Ended
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Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | DERIVATIVE INSTRUMENTS We 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 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. Foreign Currency Hedges
2023 | Cash Flow | Net Investment | Non-Designated | Total
Gross notional amount | $ | 1,650 |  | $ | 1,662 |  | $ | 4,315 |  | $ | 7,627 |
Maximum term in years |  |  |  | 2.9
Fair value: |  |  |  |
Other current assets | $ | 24 |  | $ | 74 |  | $ | 16 |  | $ | 114 |
Other noncurrent assets | 2 |  | — |  | — |  | 2 |
Other current liabilities | (16) |  | — |  | (36) |  | (52) |
Other noncurrent liabilities | (2) |  | (43) |  | — |  | (45) |
Total fair value | $ | 8 |  | $ | 31 |  | $ | (20) |  | $ | 19 |
2022 |  |  |  |
Gross notional amount | $ | 1,053 |  | $ | 1,598 |  | $ | 3,417 |  | $ | 6,068 |
Maximum term in years |  |  |  | 3.9
Fair value: |  |  |  |
Other current assets | $ | 20 |  | $ | — |  | $ | 9 |  | $ | 29 |
Other noncurrent assets | 1 |  | 89 |  | — |  | 90 |
Other current liabilities | (6) |  | — |  | (79) |  | (85) |
Other noncurrent liabilities | (1) |  | (16) |  | — |  | (17) |
Total fair value | $ | 14 |  | $ | 73 |  | $ | (70) |  | $ | 17 |
We had €1.5 billion at December 31, 2023 and 2022 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 had €4.9 billion and €4.4 billion at December 31, 2023 and 2022 of senior unsecured notes designated as net investment hedges to selectively hedge portions of our investment in certain international subsidiaries. The increase in 2023 was due to the designation of €1.1 billion of senior unsecured notes issued in August and December as net investment hedges partially offset by the November maturity of €550 of notes previously designated as a net investment hedge. See Note 10 for information on debt issuances and maturities. 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. In 2022 we settled certain foreign currency forward contracts designated as net investment hedges resulting in cash proceeds of $197. The amounts in AOCI related to settled net investment hedges will remain in AOCI until the hedged investment is either sold or substantially liquidated. The total after-tax gain (loss) recognized in OCI related to designated net investment hedges was ($215) in 2023.
Currency Exchange Rate Gains (Losses) Recognized in Net Earnings
Derivative Instrument | Recognized in: | 2023 |  | 2022 |  | 2021
Cash Flow | Cost of sales | $ | 39 |  |  | $ | 23 |  |  | $ | (12) |
Net Investment | Other income (expense), net | 34 |  |  | 39 |  |  | 35 |
Non-Designated | Other income (expense), net | 25 |  |  | 30 |  |  | 8 |
| Total | $ | 98 |  |  | $ | 92 |  |  | $ | 31 |
Pretax gains (losses) on derivatives designated as cash flow hedges of $26 and net investment hedges of $27 recorded in AOCI are expected to be reclassified to cost of sales and other income (expense), net in earnings within 12 months as of December 31, 2023. 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 conjunction with our offerings of senior unsecured notes in December 2023 we settled certain forward starting interest rate swap contracts with gross notional amounts of $200 that were designated as cash flow hedges. Pretax gains of $4 recorded in AOCI related to interest rate hedges closed in conjunction with debt issuances are expected to be reclassified to other income (expense), net in earnings within 12 months of December 31, 2023. The cash flow effect of interest rate hedges is recorded in cash flow from operations.

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- 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://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//815/tableOfContent + Details
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