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Financial Instruments (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2022
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 March 31, |  |  |  | Location of Gain/(Loss) Recognized in Earnings
| 2022 |  | 2021 |  |  |  |  |
| (in millions) |  |
Currency exchange contracts: |  |  |  |  |  |  |  |  |
Intercompany loans and forecasted interest payments | $ | (11) |  |  | $ | 70 |  |  |  |  |  |  | Interest and other expense, net
Forecasted transactions | (7) |  |  | 50 |  |  |  |  |  |  | Cost of sales
Forecasted transactions | 21 |  |  | (16) |  |  |  |  |  |  | Interest and other expense, net
Forecasted transactions | 2 |  |  | 2 |  |  |  |  |  |  | Selling, general and administrative expenses
Commodity contracts | 237 |  |  | 94 |  |  |  |  |  |  | Cost of sales
Equity method investment contracts | — |  |  | — |  |  |  |  |  |  | Gain on equity method investment transactions
Total | $ | 242 |  |  | $ | 200 |  |  |  |  |  |  |
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 March 31, |  |
| 2022 |  | 2021 |  |  |  |
| (in millions)
Accumulated (loss)/gain at beginning of period | $ | (148) |  |  | $ | (161) |  |  |  |  |
Transfer of realized losses/(gains) in fair value to earnings | 25 |  |  | 5 |  |  |  |  |
Unrealized (loss)/gain in fair value | 27 |  |  | (3) |  |  |  |  |
Accumulated (loss)/gain at end of period | $ | (96) |  |  | $ | (159) |  |  |  |  |
Schedule of Effects of Derivative Instruments | After-tax gains/(losses) reclassified from accumulated other comprehensive earnings/(losses) to net earnings were:
| For the Three Months Ended March 31, |  |
| 2022 |  | 2021 |  |  |  |
| (in millions)
Currency exchange contracts – forecasted transactions | $ | (2) |  |  | $ | — |  |  |  |  |
Interest rate contracts | (23) |  |  | (5) |  |  |  |  |
Total | $ | (25) |  |  | $ | (5) |  |  |  |  |
After-tax gains/(losses) recognized in other comprehensive earnings/(losses) were:
| For the Three Months Ended March 31, |  |
| 2022 |  | 2021 |  |  |  |
| (in millions)
Currency exchange contracts – forecasted transactions | $ | 2 |  |  | $ | (1) |  |  |  |  |
Interest rate contracts | 25 |  |  | (2) |  |  |  |  |
Total | $ | 27 |  |  | $ | (3) |  |  |  |  |
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 March 31, |  |
| 2022 |  | 2021 |  |  |  |
| (in millions)
After-tax gain/(loss) on NIH contracts(1) | $ | 41 |  |  | $ | 59 |  |  |  |  |
(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 March 31, |  |
| 2022 |  | 2021 |  |  |  |
| (in millions)
Amounts excluded from the assessment of hedge effectiveness(1) | $ | 22 |  |  | $ | 20 |  |  |  |  |
(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 March 31, |  |
| 2022 |  | 2021 |  |  |  |
| (in millions)
Euro notes | $ | 74 |  |  | $ | 124 |  |  |  |  |
British pound sterling notes | 8 |  |  | (2) |  |  |  |  |
Swiss franc notes | 6 |  |  | 56 |  |  |  |  |
Canadian notes | (4) |  |  | (5) |  |  |  |  |
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 March 31, 2022 |  | As of December 31, 2021
| Asset Derivatives |  | Liability Derivatives |  | Asset Derivatives |  | Liability Derivatives
| (in millions)
Derivatives designated as accounting hedges: |  |  |  |  |  |  |
Currency exchange contracts | $ | 1 |  |  | $ | 3 |  |  | $ | — |  |  | $ | — |
Interest rate contracts | 27 |  |  | 3 |  |  | 27 |  |  | 17 |
Net investment hedge derivative contracts (1) | 137 |  |  | 51 |  |  | 117 |  |  | 45 |
| $ | 165 |  |  | $ | 57 |  |  | $ | 144 |  |  | $ | 62 |
Derivatives not designated as accounting hedges: |  |  |  |  |  |  |
Currency exchange contracts | $ | 135 |  |  | $ | 124 |  |  | $ | 156 |  |  | $ | 40 |
Commodity contracts | 589 |  |  | 220 |  |  | 387 |  |  | 137 |
Equity method investment contracts(2) | — |  |  | 3 |  |  | — |  |  | 3 |
| $ | 724 |  |  | $ | 347 |  |  | $ | 543 |  |  | $ | 180 |
Total fair value | $ | 889 |  |  | $ | 404 |  |  | $ | 687 |  |  | $ | 242 |
(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. (2)Equity method investment contracts consist of the bifurcated embedded derivative option that was a component of the September 20, 2021 €300 million exchangeable bonds issuance. Refer to Note 8, Debt and Borrowing Arrangements.
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, 2022
| 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 | $ | 9 |  |  | $ | — |  |  | $ | 9 |  |  | $ | — |
Commodity contracts | 369 |  |  | 213 |  |  | 156 |  |  | — |
Interest rate contracts | 24 |  |  | — |  |  | 24 |  |  | — |
Net investment hedge contracts | 86 |  |  | — |  |  | 86 |  |  | — |
Equity method investment contracts | (3) |  |  | — |  |  | (3) |  |  | — |
Total derivatives | $ | 485 |  |  | $ | 213 |  |  | $ | 272 |  |  | $ | — |
| As of December 31, 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 | $ | 116 |  |  | $ | — |  |  | $ | 116 |  |  | $ | — |
Commodity contracts | 251 |  |  | 161 |  |  | 90 |  |  | — |
Interest rate contracts | 10 |  |  | — |  |  | 10 |  |  | — |
Net investment hedge contracts | 71 |  |  | — |  |  | 71 |  |  | — |
Equity method investment contracts | (3) |  |  | — |  |  | (3) |  |  | — |
Total derivatives | $ | 445 |  |  | $ | 161 |  |  | $ | 284 |  |  | $ | — |
Schedule of Notional Values of Derivative Instruments | The notional values of our hedging instruments were:
| Notional Amount
| As of March 31, 2022 |  | As of December 31, 2021
| (in millions)
Currency exchange contracts: |  |  |
Intercompany loans and forecasted interest payments | $ | 3,073 |  |  | $ | 1,891 |
Forecasted transactions | 4,822 |  |  | 4,831 |
Commodity contracts | 10,281 |  |  | 9,694 |
Interest rate contracts | 1,850 |  |  | 1,850 |
Net investment hedges: |  |  |
Net investment hedge derivative contracts | 7,306 |  |  | 3,915 |
Non-U.S. dollar debt designated as net investment hedges |  |  |
Euro notes | 3,525 |  |  | 3,622 |
British pound sterling notes | 346 |  |  | 356 |
Swiss franc notes | 802 |  |  | 811 |
Canadian dollar notes | 480 |  |  | 475 |

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