XML 44 R33.htm IDEA: XBRL DOCUMENT
v3.21.2

Financial Instruments (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items] |
Schedule of Effects of Derivative Instruments | Pre-tax gains/(losses) recorded in net earnings for economic hedges were:
| For the Three Months Ended June 30, |  | For the Six Months Ended June 30, |  | Location of Gain/(Loss) Recognized in Earnings
| 2021 |  | 2020 |  | 2021 |  | 2020 |
| (in millions) |  |
Currency exchange contracts: |  |  |  |  |  |  |  |  |
Intercompany loans and forecasted interest payments | $ | 2 |  |  | $ | (7) |  |  | $ | 72 |  |  | $ | (80) |  |  | Interest and other expense, net
Forecasted transactions | (38) |  |  | (4) |  |  | 12 |  |  | 22 |  |  | Cost of sales
Forecasted transactions | 14 |  |  | (10) |  |  | (2) |  |  | (9) |  |  | Interest and other expense, net
Forecasted transactions | (1) |  |  | — |  |  | 1 |  |  | (1) |  |  | Selling, general and administrative expenses
Commodity contracts | 117 |  |  | 14 |  |  | 211 |  |  | (183) |  |  | Cost of sales
Total | $ | 94 |  |  | $ | (7) |  |  | $ | 294 |  |  | $ | (251) |  |  |
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 June 30, |  | For the Six Months Ended June 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
| (in millions)
Accumulated (loss)/gain at beginning of period | $ | (159) |  |  | $ | (155) |  |  | $ | (161) |  |  | $ | (213) |
Transfer of realized losses/(gains) in fair value to earnings | 4 |  |  | 7 |  |  | 9 |  |  | 88 |
Unrealized (loss)/gain in fair value | 13 |  |  | (6) |  |  | 10 |  |  | (29) |
Accumulated (loss)/gain at end of period | $ | (142) |  |  | $ | (154) |  |  | $ | (142) |  |  | $ | (154) |
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 June 30, |  | For the Six Months Ended June 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
| (in millions)
Interest rate contracts | $ | (4) |  |  | $ | (7) |  |  | $ | (9) |  |  | $ | (88) |
Within interest and other expense, net, due to changes in forecasted debt, we recognized losses related to forward-starting interest rate swaps of $79 million ($103 million pre-tax) in the first quarter of 2020 and in the six months ended June 30, 2020. After-tax gains/(losses) recognized in other comprehensive earnings/(losses) were:
| For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
| (in millions)
Currency exchange contracts – forecasted transactions | $ | 7 |  |  | $ | (1) |  |  | $ | 6 |  |  | $ | (1) |
Interest rate contracts | 6 |  |  | (5) |  |  | 4 |  |  | (28) |
Total | $ | 13 |  |  | $ | (6) |  |  | $ | 10 |  |  | $ | (29) |
Net investment hedges |
Derivative Instruments and Hedging Activities Disclosures [Line Items] |
Schedule of Hedges of Net Investments in International Operations | The impacts of the net investment hedge derivative contracts on other comprehensive earnings and net earnings were as follows:
| For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
| (in millions)
After-tax gain/(loss) on NIH contracts(1) | $ | (36) |  |  | $ | (115) |  |  | $ | 23 |  |  | $ | 217 |
(1)Amounts recorded for unsettled and settled NIH derivative contracts are recorded in the cumulative translation adjustment within other comprehensive earnings. The cash flows from the settled contracts are reported within other investing activities in the condensed consolidated statement of cash flows.
| For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
| (in millions)
Amounts excluded from the assessment of hedge effectiveness(1) | $ | 19 |  |  | $ | 31 |  |  | $ | 40 |  |  | $ | 64 |
(1)We elected to record changes in the fair value of amounts excluded from the assessment of effectiveness in net earnings within interest and other expense, net. 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 June 30, |  | For the Six Months Ended June 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
| (in millions)
Euro notes | $ | (31) |  |  | $ | (55) |  |  | $ | 92 |  |  | $ | (13) |
British pound sterling notes | (1) |  |  | — |  |  | (3) |  |  | 17 |
Swiss franc notes | (17) |  |  | (14) |  |  | 39 |  |  | (20) |
Canadian notes | (5) |  |  | (12) |  |  | (9) |  |  | 15 |
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 June 30, 2021 |  | As of December 31, 2020
| Asset Derivatives |  | Liability Derivatives |  | Asset Derivatives |  | Liability Derivatives
| (in millions)
Derivatives designated as accounting hedges: |  |  |  |  |  |  |
Interest rate contracts | $ | 13 |  |  | $ | 236 |  |  | $ | 12 |  |  | $ | 340 |
Net investment hedge derivative contracts (1) | 104 |  |  | 62 |  |  | 114 |  |  | 129 |
| $ | 117 |  |  | $ | 298 |  |  | $ | 126 |  |  | $ | 469 |
Derivatives not designated as accounting hedges: |  |  |  |  |  |  |
Currency exchange contracts | $ | 113 |  |  | $ | 82 |  |  | $ | 134 |  |  | $ | 119 |
Commodity contracts | 340 |  |  | 147 |  |  | 205 |  |  | 128 |
| $ | 453 |  |  | $ | 229 |  |  | $ | 339 |  |  | $ | 247 |
Total fair value | $ | 570 |  |  | $ | 527 |  |  | $ | 465 |  |  | $ | 716 |
(1)Net investment hedge derivative contracts consist of cross-currency interest rate swaps, forward contracts and options. 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 June 30, 2021
| 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 | $ | 31 |  |  | $ | — |  |  | $ | 31 |  |  | $ | — |
Commodity contracts | 193 |  |  | 108 |  |  | 85 |  |  | — |
Interest rate contracts | (223) |  |  | — |  |  | (223) |  |  | — |
Net investment hedge contracts | 42 |  |  | — |  |  | 42 |  |  | — |
Total derivatives | $ | 43 |  |  | $ | 108 |  |  | $ | (65) |  |  | $ | — |
| As of December 31, 2020
| 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 | $ | 15 |  |  | $ | — |  |  | $ | 15 |  |  | $ | — |
Commodity contracts | 77 |  |  | 46 |  |  | 31 |  |  | — |
Interest rate contracts | (328) |  |  | — |  |  | (328) |  |  | — |
Net investment hedge contracts | (15) |  |  | — |  |  | (15) |  |  | — |
Total derivatives | $ | (251) |  |  | $ | 46 |  |  | $ | (297) |  |  | $ | — |
Schedule of Notional Values of Derivative Instruments | The notional values of our hedging instruments were:
| Notional Amount
| As of June 30, 2021 |  | As of December 31, 2020
| (in millions)
Currency exchange contracts: |  |  |
Intercompany loans and forecasted interest payments | $ | 2,228 |  |  | $ | 2,184 |
Forecasted transactions | 4,098 |  |  | 4,169 |
Commodity contracts | 7,259 |  |  | 7,947 |
Interest rate contracts | 3,500 |  |  | 3,500 |
Net investment hedges: |  |  |
Net investment hedge derivative contracts | 4,623 |  |  | 4,551 |
Non-U.S. dollar debt designated as net investment hedges |  |  |
Euro notes | 3,777 |  |  | 3,744 |
British pound sterling notes | 364 |  |  | 360 |
Swiss franc notes | 1,124 |  |  | 1,175 |
Canadian dollar notes | 484 |  |  | 472 |

X
- Definition Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. + References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosuresLineItems
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=123594938&loc=d3e13467-108611 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of gain (loss) on derivative and nonderivative instruments designated and qualifying as cash flow hedge recorded in accumulated other comprehensive income (AOCI) and reclassified into earnings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfCashFlowHedgesIncludedInAccumulatedOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624181-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5618551-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the effective portion of gains and losses on derivative instruments (and nonderivative instruments) designated and qualifying in net investment hedges recorded in accumulated other comprehensive income (loss) during the term of the hedging relationship and reclassified into earnings during the current period. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4CCC -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL109998896-113959 + Details
Name: | us-gaap_ScheduleOfNetInvestmentHedgesInAccumulatedOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the notional amounts of outstanding derivative positions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5579245-113959 + Details
Name: | us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_DerivativeInstrumentsGainLossByHedgingRelationshipAxis=us-gaap_CashFlowHedgingMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |

X
- Details
Name: | us-gaap_DerivativeInstrumentsGainLossByHedgingRelationshipAxis=us-gaap_NetInvestmentHedgingMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |

X
- Details
Name: | us-gaap_FinancialInstrumentAxis=us-gaap_DerivativeMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |