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Financial Instruments (Tables) | 3 Months Ended
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Mar. 31, 2016
Fair Value of Derivatives Instruments | Derivative instruments were recorded at fair value in the condensed consolidated balance sheets as follows:
|  | As of March 31, 2016 |  |  | As of December 31, 2015 |
|  | Asset |  |  | Liability |  |  | Asset |  |  | Liability |
|  | Derivatives |  |  | Derivatives |  |  | Derivatives |  |  | Derivatives |
|  | (in millions) |
Derivatives designated as accounting hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Currency exchange contracts |  | $ | 4 |  |  | $ | 7 |  |  | $ | 20 |  |  | $ | 7 |
Commodity contracts |  |  | 11 |  |  |  | 10 |  |  |  | 37 |  |  |  | 35 |
Interest rate contracts |  |  | 17 |  |  |  | 4 |  |  |  | 12 |  |  |  | 57 |
|  | $ | 32 |  |  | $ | 21 |  |  | $ | 69 |  |  | $ | 99 |
Derivatives not designated as accounting hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Currency exchange contracts |  | $ | 34 |  |  | $ | 88 |  |  | $ | 61 |  |  | $ | 33 |
Commodity contracts |  |  | 33 |  |  |  | 48 |  |  |  | 70 |  |  |  | 56 |
Interest rate contracts |  |  | 37 |  |  |  | 25 |  |  |  | 43 |  |  |  | 28 |
|  | $ | 104 |  |  | $ | 161 |  |  | $ | 174 |  |  | $ | 117 |
Total fair value |  | $ | 136 |  |  | $ | 182 |  |  | $ | 243 |  |  | $ | 216 |
Notional Values of Derivative Instruments | The net notional values of our derivative instruments were:
|  | Notional Amount |
|  | As of March 31, |  |  | As of December 31, |
|  | 2016 |  |  | 2015 |
|  | (in millions) |
Currency exchange contracts: |  |  |  |  |  |  |  |
Intercompany loans and forecasted interest payments |  | $ | 4,162 |  |  | $ | 4,148 |
Forecasted transactions |  |  | 1,464 |  |  |  | 1,094 |
Commodity contracts |  |  | 544 |  |  |  | 732 |
Interest rate contracts |  |  | 2,115 |  |  |  | 3,033 |
Net investment hedge – euro notes |  |  | 5,349 |  |  |  | 4,345 |
Net investment hedge – pound sterling notes |  |  | 1,368 |  |  |  | 1,404 |
Net investment hedge – Swiss franc notes |  |  | 1,534 |  |  |  | 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:
|  | For the Three Months Ended March 31, |  |  | Location of Gain / (Loss) Recognized in AOCI |  |  |  |
|  | 2016 |  |  | 2015 |  |  |
|  | (in millions) |  |  |  |  |
Euro notes |  | $ | 154 |  |  | $ | 314 |  |  |  | Currency |  |
Pound sterling notes |  |  | (23 | ) |  |  | 32 |  |  |  | Translation |  |
Swiss franc notes |  |  | 43 |  |  |  | (13 | ) |  |  | 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 March 31, 2016 |
|  | Total Fair Value of Net Asset / (Liability) |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
|  | (in millions) |
Currency exchange contracts |  | $ | (57 | ) |  | $ | – |  |  | $ | (57 | ) |  | $ | – |
Commodity contracts |  |  | (14 | ) |  |  | (10 | ) |  |  | (4 | ) |  |  | – |
Interest rate contracts |  |  | 25 |  |  |  | – |  |  |  | 25 |  |  |  | – |
Total derivatives |  | $ | (46 | ) |  | $ | (10 | ) |  | $ | (36 | ) |  | $ | – |
|  | As of December 31, 2015 |
|  | Total Fair Value of Net Asset / (Liability) |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
|  | (in millions) |
Currency exchange contracts |  | $ | 41 |  |  | $ | – |  |  | $ | 41 |  |  | $ | – |
Commodity contracts |  |  | 16 |  |  |  | 29 |  |  |  | (13 | ) |  |  | – |
Interest rate contracts |  |  | (30 | ) |  |  | – |  |  |  | (30 | ) |  |  | – |
Total derivatives |  | $ | 27 |  |  | $ | 29 |  |  | $ | (2 | ) |  | $ | – |
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 Three Months Ended March 31, |
|  | 2016 |  |  | 2015 |
|  | (in millions) |
Accumulated gain / (loss) at January 1 |  | $ | (45 | ) |  | $ | (2 | )
Transfer of realized losses / (gains) in fair value to earnings |  |  | 58 |  |  |  | (18 | )
Unrealized gain / (loss) in fair value |  |  | (66 | ) |  |  | (26 | )
Accumulated gain / (loss) at March 31 |  | $ | (53 | ) |  | $ | (46 | )
Schedule of Effects of Derivative Instruments | After-tax gains / (losses) reclassified from accumulated other comprehensive earnings / (losses) into net earnings were:
|  | For the Three Months Ended March 31, |
|  | 2016 |  |  | 2015 |
|  | (in millions) |
Currency exchange contracts – forecasted transactions |  | $ | 5 |  |  | $ | 46 |
Commodity contracts |  |  | (3 | ) |  |  | (2 | )
Interest rate contracts |  |  | (60 | ) |  |  | (26 | )
Total |  | $ | (58 | ) |  | $ | 18 |
After-tax gains / (losses) recognized in other comprehensive earnings / (losses) were:
|  | For the Three Months Ended March 31, |
|  | 2016 |  |  | 2015 |
|  | (in millions) |
Currency exchange contracts – forecasted transactions |  | $ | (12 | ) |  | $ | 49 |
Commodity contracts |  |  | (5 | ) |  |  | (38 | )
Interest rate contracts |  |  | (49 | ) |  |  | (37 | )
Total |  | $ | (66 | ) |  | $ | (26 | )
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 Three Months Ended March 31, |  |  |
|  | 2016 |  |  | 2015 |  |
|  | (in millions) |  |
Derivatives |  | $ | 5 |  |  | $ | 4 |  |
Borrowings |  |  | (5 | ) |  |  | (4 | ) |
Economic Hedging |
Schedule of Effects of Derivative Instruments |
Pre-tax gains / (losses) recorded in net earnings for economic hedges were:
|  | For the Three Months Ended March 31, |  |  | Location of Gain / (Loss) Recognized in Earnings
|  | 2016 |  |  | 2015 |  |
|  | (in millions) |  |  |
Currency exchange contracts: |  |  |  |  |  |  |  |  |  |
Intercompany loans and forecasted interest payments |  | $ | 5 |  |  | $ | 7 |  |  | Interest and other expense, net
Forecasted transactions |  |  | (31 | ) |  |  | (3 | ) |  | Cost of sales
Forecasted transactions |  |  | 8 |  |  |  | 553 |  |  | Interest and other expense, net
Forecasted transactions |  |  | 4 |  |  |  | (11 | ) |  | Selling, general and administrative expenses
Interest rate contracts |  |  | – |  |  |  | 1 |  |  | Interest and other expense, net
Commodity contracts |  |  | (44 | ) |  |  | (41 | ) |  | Cost of sales
Total |  | $ | (58 | ) |  | $ | 506 |  |  |

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- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624171-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5618551-113959 + Details
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