XML 45 R32.htm IDEA: XBRL DOCUMENT v3.10.0.1
Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Schedule of Pre-tax Effects of Derivative Instruments Pre-tax gains/(losses) recorded in net earnings for economic hedges were:
 
For the Three Months Ended
September 30,
 
For the Nine Months Ended
September 30,
 
Location of
Gain/(Loss)
Recognized
in Earnings
 
2018
 
2017
 
2018
 
2017
 
 
(in millions)
 
 
Currency exchange contracts:
 
 
 
 
 
 
 
 
 
Intercompany loans and
   forecasted interest payments
$
16

 
$
(13
)
 
$
30

 
$
(8
)
 
Interest and other expense, net
Forecasted transactions
53

 
(1
)
 
118

 
—

 
Cost of sales
Forecasted transactions
(1
)
 
1

 
(6
)
 
(1
)
 
Interest and other expense, net
Forecasted transactions
2

 
—

 
(2
)
 
2

 
Selling, general and administrative expenses
Commodity contracts
(123
)
 
(17
)
 
(22
)
 
(176
)
 
Cost of sales
Total
$
(53
)
 
$
(30
)
 
$
118

 
$
(183
)
 
 
Cash Flow Hedges  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Schedule of Cash Flow Hedges Effect on Accumulated Other Comprehensive Earnings/(Losses), Net of Taxes Cash flow hedge activity, net of taxes, within accumulated other comprehensive earnings/(losses) included:
 
For the Three Months Ended
September 30,
 
For the Nine Months Ended
September 30,
 
2018
 
2017
 
2018
 
2017
 
(in millions)
Accumulated (loss)/gain at beginning of period
$
(133
)
 
$
(91
)
 
$
(113
)
 
$
(121
)
Transfer of realized (gains)/losses
   in fair value to earnings
—

 
(13
)
 
(9
)
 
(10
)
Unrealized gain/(loss) in fair value
25

 
(6
)
 
14

 
21

Accumulated (loss)/gain at end of period
$
(108
)
 
$
(110
)
 
$
(108
)
 
$
(110
)
Schedule of Pre-tax Effects of Derivative Instruments After-tax gains/(losses) reclassified from accumulated other comprehensive earnings/(losses) into net earnings were:
 
For the Three Months Ended
September 30,
 
For the Nine Months Ended
September 30,
 
2018
 
2017
 
2018
 
2017
 
(in millions)
Currency exchange contracts –
    forecasted transactions
$
—

 
$
(3
)
 
$
—

 
$
(2
)
Commodity contracts
$
—

 
$
16

 
$
—

 
$
12

Interest rate contracts
—

 
—

 
9

 
—

Total
$
—

 
$
13

 
$
9

 
$
10


After-tax gains/(losses) recognized in other comprehensive earnings/(losses) were:
 
For the Three Months Ended
September 30,
 
For the Nine Months Ended
September 30,
 
2018
 
2017
 
2018
 
2017
 
(in millions)
Currency exchange contracts –
    forecasted transactions
$
—

 
$
(11
)
 
$
—

 
$
(37
)
Commodity contracts
—

 
25

 
—

 
31

Interest rate contracts
25

 
(20
)
 
14

 
27

Total
$
25

 
$
(6
)
 
$
14

 
$
21
Fair Value Hedges  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Schedule of Pre-tax 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
September 30,
 
For the Nine Months Ended
September 30,
 
2018
 
2017
 
2018
 
2017
 
(in millions)
Borrowings
$
—

 
$
2

 
$
1

 
$
4

Derivatives
—

 
(2
)
 
(1
)
 
(4
)
Total
$
—

 
$
—

 
$
—

 
$
—
Net investment hedge debt  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Schedule of 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, British pound sterling, Swiss franc and Canadian dollar-denominated debt were recorded within the cumulative translation adjustment section of other comprehensive income and were:
 
For the Three Months Ended
September 30,
 
For the Nine Months Ended
September 30,
 
2018
 
2017
 
2018
 
2017
 
(in millions)
Euro notes
$
18

 
$
(83
)
 
$
94

 
$
(279
)
British pound sterling notes
5

 
(8
)
 
13

 
(23
)
Swiss franc notes
(10
)
 
12

 
6

 
(53
)
Canadian notes
(6
)
 
—

 
(2
)
 
—
Derivative  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Schedule of Fair Value of Derivatives Instruments Derivative instruments were recorded at fair value in the condensed consolidated balance sheets as follows:
 
As of September 30, 2018
 
As of December 31, 2017
 
Asset
Derivatives
 
Liability
Derivatives
 
Asset
Derivatives
 
Liability
Derivatives
 
(in millions)
Derivatives designated as
accounting hedges:
 
 
 
 
 
 
 
Interest rate contracts
$
59

 
$
359

 
$
15

 
$
509

Net investment hedge derivative contracts (1)
365

 
3

 
—

 
—

 
$
424

 
$
362

 
$
15

 
$
509

Derivatives not designated as
   accounting hedges:
 
 
 
 
 
 
 
Currency exchange contracts
$
133

 
$
47

 
$
65

 
$
76

Commodity contracts
129

 
170

 
84

 
229

Interest rate contracts
—

 
—

 
15

 
11

 
$
262

 
$
217

 
$
164

 
$
316

Total fair value
$
686

 
$
579

 
$
179

 
$
825


(1)
Net investment hedge contracts consist of cross-currency interest rate swaps and forward contracts. We also designate some of our non-U.S. dollar denominated debt to hedge a portion of our net investments in our non-U.S. operations. This debt is not reflected in the table above, but is included in long-term debt discussed in Note 8, Debt and Borrowing Arrangements. Both net investment hedge derivative contracts and non-U.S. dollar denominated debt acting as net investment hedges are also disclosed in the Derivative Volume table and the Hedges of Net Investments in International Operations section appearing later in this footnote.
Schedule of Derivative Instruments Fair Value and Measurement Inputs The fair values (asset/(liability)) of our derivative instruments were determined using:
 
As of September 30, 2018
 
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
$
86

 
$
—

 
$
86

 
$
—

Commodity contracts
(41
)
 
4

 
(45
)
 
—

Interest rate contracts
(300
)
 
—

 
(300
)
 
—

Net investment hedge contracts
362

 
—

 
362

 
—

Total derivatives
$
107

 
$
4

 
$
103

 
$
—

 
As of December 31, 2017
 
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
$
(11
)
 
$
—

 
$
(11
)
 
$
—

Commodity contracts
(145
)
 
(138
)
 
(7
)
 
—

Interest rate contracts
(490
)
 
—

 
(490
)
 
—

Total derivatives
$
(646
)
 
$
(138
)
 
$
(508
)
 
$
—
Schedule of Notional Values of Derivative Instruments The net notional values of our hedging instruments were:
 
Notional Amount
 
As of September 30, 2018
 
As of December 31, 2017
 
(in millions)
Currency exchange contracts:
 
 
 
Intercompany loans and forecasted interest payments
$
3,797

 
$
7,089

Forecasted transactions
2,677

 
2,213

Commodity contracts
1,018

 
1,204

Interest rate contracts
8,205

 
6,532

Net investment hedges:
 
 
 
Net investment hedge derivative contracts
7,079

 
—

Non-U.S. dollar debt designated as net investment hedges
 
 
 
Euro notes
3,556

 
3,679

British pound sterling notes
343

 
459

Swiss franc notes
1,426

 
1,694

Canadian dollar notes
465

 
—
Borrowings  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Schedule of Notional Values of Derivative Instruments The carrying amount of our hedged fixed interest rate debt at December 31, 2017 was $801 million and was recorded in the current portion of long-term debt until this debt matured during the third quarter of 2018.
 
As of September 30,
2018
 
As of December 31,
2017
 
(in millions)
Notional value of borrowings (and related derivatives)
$
—

 
$
(801
)
Cumulative fair value hedging adjustments
—

 
—

Carrying amount of borrowings
$
—

 
$
(801
)