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Financial Instruments (Tables) | 12 Months Ended
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Dec. 31, 2015
Fair Value of Derivatives Instruments | Derivative instruments were recorded at fair value in the consolidated balance sheets as follows:
|  | As of December 31, |
|  | 2015 |  |  | 2014 |
|  | Asset |  |  | Liability |  |  | Asset |  |  | Liability |
|  | Derivatives |  |  | Derivatives |  |  | Derivatives |  |  | Derivatives |
|  | (in millions) |
Derivatives designated as accounting hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Currency exchange contracts |  | $ | 20 |  |  | $ | 7 |  |  | $ | 69 |  |  | $ | 17 |
Commodity contracts |  |  | 37 |  |  |  | 35 |  |  |  | 12 |  |  |  | 33 |
Interest rate contracts |  |  | 12 |  |  |  | 57 |  |  |  | 13 |  |  |  | 42 |
|  | $ | 69 |  |  | $ | 99 |  |  | $ | 94 |  |  | $ | 92 |
Derivatives not designated as accounting hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Currency exchange contracts |  | $ | 61 |  |  | $ | 33 |  |  | $ | 735 |  |  | $ | 24 |
Commodity contracts |  |  | 70 |  |  |  | 56 |  |  |  | 90 |  |  |  | 194 |
Interest rate contracts |  |  | 43 |  |  |  | 28 |  |  |  | 59 |  |  |  | 39 |
|  | $ | 174 |  |  | $ | 117 |  |  | $ | 884 |  |  | $ | 257 |
Total fair value |  | $ | 243 |  |  | $ | 216 |  |  | $ | 978 |  |  | $ | 349 |
Notional Values of Derivative Instruments | The net notional values of our derivative instruments were:
|  | Notional Amount |
|  | As of December 31, |
|  | 2015 |  |  | 2014 |
|  | (in millions) |
Currency exchange contracts: |  |  |  |  |  |  |  |
Intercompany loans and forecasted interest payments |  | $ | 4,148 |  |  | $ | 3,640 |
Forecasted transactions |  |  | 1,094 |  |  |  | 6,681 |
Commodity contracts |  |  | 732 |  |  |  | 1,569 |
Interest rate contracts |  |  | 3,033 |  |  |  | 3,970 |
Net investment hedge – euro notes |  |  | 4,345 |  |  |  | 3,932 |
Net investment hedge – pound sterling notes |  |  | 1,404 |  |  |  | 545 |
Net investment hedge – Swiss franc notes |  |  | 1,073 |  |  |  | – |
Hedges of Net Investments in International Operations | After-tax gains / (losses) related to hedges of net investments in international operations in the form of euro, pound sterling and Swiss franc-denominated debt were:
|  |  |  |  |  |  |  |  |  |  | Location of
|  | For the Years Ended December 31, |  |  | Gain / (Loss)
|  | 2015 |  |  | 2014 |  |  | 2013 |  |  | Recognized in AOCI
|  |  |  |  | (in millions) |  |  |  |  |  |
Euro notes |  | $ | 268 |  |  | $ | 328 |  |  | $ | (50 | ) |  | Currency
Pound sterling notes |  |  | 42 |  |  |  | 39 |  |  |  | (13 | ) |  | Translation
Swiss franc notes |  |  | 9 |  |  |  | – |  |  |  | – |  |  | Adjustment
Derivative |
Schedule of Derivative Instruments Fair Value and Measurement Inputs | The fair values (asset / (liability)) of our derivative instruments were determined using:
|  | As of December 31, 2015 |
|  |  |  |  | Quoted Prices in |  |  |  |  |  |  |
|  |  |  |  | Active Markets |  |  | Significant |  |  | Significant |
|  | Total |  |  | for Identical |  |  | Other Observable |  |  | Unobservable |
|  | Fair Value of Net |  |  | Assets |  |  | Inputs |  |  | Inputs |
|  | Asset / (Liability) |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
|  | (in millions) |
Currency exchange contracts |  | $ | 41 |  |  | $ | – |  |  | $ | 41 |  |  | $ | – |
Commodity contracts |  |  | 16 |  |  |  | 29 |  |  |  | (13 | ) |  |  | – |
Interest rate contracts |  |  | (30 | ) |  |  | – |  |  |  | (30 | ) |  |  | – |
Total derivatives |  | $ | 27 |  |  | $ | 29 |  |  | $ | (2 | ) |  | $ | – |
|  | As of December 31, 2014 |
|  |  |  |  | Quoted Prices in |  |  |  |  |  |  |
|  |  |  |  | Active Markets |  |  | Significant |  |  | Significant |
|  | Total |  |  | for Identical |  |  | Other Observable |  |  | Unobservable |
|  | Fair Value of Net |  |  | Assets |  |  | Inputs |  |  | Inputs |
|  | Asset / (Liability) |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
|  | (in millions) |
Currency exchange contracts |  | $ | 763 |  |  | $ | – |  |  | $ | 763 |  |  | $ | – |
Commodity contracts |  |  | (125 | ) |  |  | (49 | ) |  |  | (76 | ) |  |  | – |
Interest rate contracts |  |  | (9 | ) |  |  | – |  |  |  | (9 | ) |  |  | – |
Total derivatives |  | $ | 629 |  |  | $ | (49 | ) |  | $ | 678 |  |  | $ | – |
Cash Flow Hedges |
Schedule of Cash Flow Hedges Effect on Accumulated Other Comprehensive Income, Net of Taxes | Cash flow hedge activity, net of taxes, within accumulated other comprehensive earnings / (losses) included:
|  | For the Years Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (in millions) |
Accumulated gain / (loss) at January 1 |  | $ | (2 | ) |  | $ | 117 |  |  | $ | (38 | )
Transfer of realized losses / (gains) to earnings |  |  | – |  |  |  | (40 | ) |  |  | 53 |
Unrealized gain / (loss) in fair value |  |  | (43 | ) |  |  | (79 | ) |  |  | 102 |
Accumulated gain / (loss) at December 31 |  | $ | (45 | ) |  | $ | (2 | ) |  | $ | 117 |
Schedule of Effects of Derivative Instruments | After-tax gains / (losses) reclassified from accumulated other comprehensive earnings / (losses) into net earnings were:
|  | For the Years Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (in millions ) |
Currency exchange contracts – forecasted transactions |  | $ | 83 |  |  | $ | 26 |  |  | $ | (26 | )
Commodity contracts |  |  | (52 | ) |  |  | 16 |  |  |  | (23 | )
Interest rate contracts |  |  | (31 | ) |  |  | (2 | ) |  |  | (4 | )
Total |  | $ | – |  |  | $ | 40 |  |  | $ | (53 | )
After-tax gains / (losses) recognized in other comprehensive earnings / (losses) were:
|  | For the Years Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (in millions) |
Currency exchange contracts – forecasted transactions |  | $ | 40 |  |  | $ | 82 |  |  | $ | (23 | )
Commodity contracts |  |  | (35 | ) |  |  | (2 | ) |  |  | 3 |
Interest rate contracts |  |  | (48 | ) |  |  | (159 | ) |  |  | 122 |
Total |  | $ | (43 | ) |  | $ | (79 | ) |  | $ | 102 |
Pre-tax gains / (losses) on ineffectiveness recognized in net earnings from continuing operations were:
|  | For the Years Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (in millions) |
Commodity contracts |  | $ | (4 | ) |  | $ | (10 | ) |  | $ | 1 |
Fair Value Hedges |
Schedule of Effects of Derivative Instruments | Pre-tax gains / (losses) due to changes in fair value of our interest rate swaps and related hedged long-term debt were recorded in interest and other expense, net:
|  | For the Years Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  |  |  |  | (in millions) |  |  |  |
Derivatives |  | $ | (1 | ) |  | $ | 13 |  |  | $ | – |
Borrowings |  |  | 1 |  |  |  | (13 | ) |  |  | – |
Economic Hedging |
Schedule of Effects of Derivative Instruments | Pre-tax gains / (losses) recorded in net earnings for economic hedges were:
|  | For the Years Ended December 31, |  |  | Location of Gain / (Loss) Recognized |
|  | 2015 |  |  | 2014 |  |  | 2013 |  |  | in Earnings |
|  | (in millions) |  |  |  |
Currency exchange contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Intercompany loans and forecasted interest payments |  | $ | 29 |  |  | $ | 4 |  |  | $ | 18 |  |  |  | Interest and other expense, net |
Forecasted transactions |  |  | 29 |  |  |  | 29 |  |  |  | 65 |  |  |  | Cost of sales |
Forecasted transactions |  |  | 435 |  |  |  | 610 |  |  |  | 9 |  |  |  | Interest and other expense, net |
Forecasted transactions |  |  | (12 | ) |  |  | (4 | ) |  |  | 4 |  |  |  | Selling, general and administrative expenses |
Commodity contracts |  |  | (38 | ) |  |  | (136 | ) |  |  | (40 | ) |  |  | Cost of sales |
Total |  | $ | 443 |  |  | $ | 503 |  |  | $ | 56 |  |  |  |  |

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