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DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS | 3 Months Ended
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Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Our credit, market, foreign currency and interest rate risk management policies are described in Note 12 Derivative Instruments and Hedging Transactions of Notes to Consolidated Financial Statements in our 2020 Annual Report on Form 10-K. All derivative assets are presented in Other current assets or Other assets. All derivative liabilities are presented in Accrued liabilities or Other liabilities. The following table summarizes the notional a mounts and fair values of the Company’s outstanding derivatives by risk category and instrument type within the Consolidated Balance Sheet as of March 31, 2021 and December 31, 2020:
| Notional |  | Fair Value Asset |  | Fair Value (Liability)
March 31, 2021 |  | December 31, 2020 |  | March 31, 2021 |  | December 31, 2020 |  | March 31, 2021 |  | December 31, 2020
Derivatives in Fair Value Hedging Relationships: |  |  |  |  |  |  |  |  |  |  |
Interest rate swap agreements | $ | 3,150 |  |  | $ | 3,950 |  |  | $ | 100 |  |  | $ | 194 |  |  | $ | — |  |  | $ | — |
Derivatives in Cash Flow Hedging Relationships: |  |  |  |  |  |  |  |  |  |  |
Foreign currency exchange contracts | 422 |  |  | 488 |  |  | 15 |  |  | 65 |  |  | — |  |  | (58) |
Derivatives in Net Investment Hedging Relationships: |  |  |  |  |  |  |  |  |  |  |
Foreign currency exchange contracts | 792 |  |  | 806 |  |  | 49 |  |  | 45 |  |  | (3) |  |  | (1) |
Cross currency swap agreements | 1,200 |  |  | 1,200 |  |  | — |  |  | — |  |  | (5) |  |  | (50) |
Total Derivatives Designated as Hedging Instruments | 5,564 |  |  | 6,444 |  |  | 164 |  |  | 304 |  |  | (8) |  |  | (109) |
Derivatives Not Designated as Hedging Instruments: |  |  |  |  |  |  |  |  |  |  |
Foreign currency exchange contracts | 13,403 |  |  | 14,829 |  |  | 161 |  |  | 92 |  |  | (163) |  |  | (91) |
Total Derivatives at Fair Value | $ | 18,967 |  |  | $ | 21,273 |  |  | $ | 325 |  |  | $ | 396 |  |  | $ | (171) |  |  | $ | (200) |
In addition to the derivative instruments listed above, certain of the Company's foreign currency denominated debt instruments are designated as net investment hedges. The carrying value of those debt instruments designated as net investment hedges, which includes the adjustment for the foreign currency transaction gain or loss on those instruments, was $4,235 million and $4,414 million as of March 31, 2021 and December 31, 2020. The following table sets forth the amounts recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges:
Line in the Consolidated Balance Sheet of Hedged Item | Carrying Amount of the Hedged Item |  | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item
March 31, 2021 |  | December 31, 2020 |  | March 31, 2021 |  | December 31, 2020
Long-term debt | $ | 3,250 |  |  | $ | 4,144 |  |  | $ | 100 |  |  | $ | 194 |
The following tables summarize the location and impact to the Consolidated Statement of Operations related to derivative instruments:
| Three Months Ended March 31, 2021
Revenue |  | Cost of Products and Services Sold |  | SG&A |  | Other (Income) Expense |  | Interest and Other Financial Charges
| $ | 8,454 |  |  | $ | 5,709 |  |  | $ | 1,236 |  |  | $ | (442) |  |  | $ | 90 |
Gain or (loss) on cash flow hedges: |  |  |  |  |  |  |  |  |
Foreign Currency Exchange Contracts: |  |  |  |  |  |  |  |  |
Amount reclassified from accumulated other comprehensive income into income | 1 |  |  | 1 |  |  | 2 |  |  | — |  |  | — |
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | — |  |  | — |  |  | — |  |  | — |  |  | — |
Gain or (loss) on fair value hedges: |  |  |  |  |  |  |  |  |
Interest Rate Swap Agreements: |  |  |  |  |  |  |  |  |
Hedged items | — |  |  | — |  |  | — |  |  | — |  |  | 94 |
Derivatives designated as hedges | — |  |  | — |  |  | — |  |  | — |  |  | (94) |
Gain or (loss) on net investment hedges: |  |  |  |  |  |  |  |  |
Foreign Currency Exchange Contracts: |  |  |  |  |  |  |  |  |
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | — |  |  | — |  |  | — |  |  | — |  |  | 4 |
Gain or (loss) on derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |
Foreign currency exchange contracts | — |  |  | — |  |  | — |  |  | 60 |  |  | — |
| Three Months Ended March 31, 2020
Revenue |  | Cost of Products and Services Sold |  | SG&A |  | Other (Income) Expense |  | Interest and Other Financial Charges
| $ | 8,463 |  |  | $ | 5,534 |  |  | $ | 1,238 |  |  | $ | (317) |  |  | $ | 73 |
Gain or (loss) on cash flow hedges: |  |  |  |  |  |  |  |  |
Foreign Currency Exchange Contracts: |  |  |  |  |  |  |  |  |
Amount reclassified from accumulated other comprehensive income into income | — |  |  | 27 |  |  | — |  |  | 40 |  |  | — |
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | — |  |  | 4 |  |  | — |  |  | 8 |  |  | — |
Gain or (loss) on fair value hedges: |  |  |  |  |  |  |  |  |
Interest Rate Swap Agreements: |  |  |  |  |  |  |  |  |
Hedged items | — |  |  | — |  |  | — |  |  | — |  |  | (205) |
Derivatives designated as hedges | — |  |  | — |  |  | — |  |  | — |  |  | 205 |
Gain or (loss) on net investment hedges: |  |  |  |  |  |  |  |  |
Foreign Currency Exchange Contracts: |  |  |  |  |  |  |  |  |
Amount excluded from effectiveness testing recognized in earnings using an amortization approach | — |  |  | — |  |  | — |  |  | — |  |  | 5 |
Gain or (loss) on derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |
Foreign currency exchange contracts | — |  |  | — |  |  | — |  |  | 284 |  |  | — |
The following table summarizes the amounts of gain or (loss) on net investment hedges recognized in Accumulated other comprehensive income (loss):
Derivatives Net Investment Hedging Relationships | Three Months Ended March 31,
2021 |  | 2020
Euro-denominated long-term debt | $ | 150 |  |  | $ | 124 |
Euro-denominated commercial paper | 30 |  |  | 70 |
Cross currency swap | 44 |  |  | (26) |
Foreign currency exchange contracts | (2) |  |  | 84 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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