XML 45 R33.htm IDEA: XBRL DOCUMENT v3.22.2

Financial Instruments (Tables)

6 Months Ended

Jun. 30, 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 June 30,												For the Six Months Ended June 30,												Location of Gain/(Loss) Recognized in Earnings
			2022						2021						2022						2021
			(in millions)
Currency exchange contracts:
Intercompany loans and forecasted interest payments			$	7					$	2					$	(4)					$	72					Interest and other expense, net
Forecasted transactions			114						(38)						107						12						Cost of sales
Forecasted transactions			(52)						14						(31)						(2)						Interest and other expense, net
Forecasted transactions			1						(1)						3						1						Selling, general and administrative expenses
Commodity contracts			(40)						117						197						211						Cost of sales
Equity method investment    contracts			—						—						—						—						Gain on equity method investment transactions
Total			$	30					$	94					$	272					$	294

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,
			2022						2021						2022						2021
			(in millions)
Accumulated (loss)/gain at beginning of period			$	(96)					$	(159)					$	(148)					$	(161)
Transfer of realized losses/(gains) in fair value    to earnings			(96)						4						(71)						9
Unrealized (loss)/gain in fair value			104						13						131						10
Accumulated (loss)/gain at end of period			$	(88)					$	(142)					$	(88)					$	(142)

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 June 30,												For the Six Months Ended June 30,
			2022						2021						2022						2021
			(in millions)
Currency exchange contracts –    forecasted transactions			$	(2)					$	—					$	(4)					$	—
Interest rate contracts			98						(4)						75						(9)
Total			$	96					$	(4)					$	71					$	(9)

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,
			2022						2021						2022						2021
			(in millions)
Currency exchange contracts –    forecasted transactions			$	2					$	7					$	4					$	6
Interest rate contracts			102						6						127						4
Total			$	104					$	13					$	131					$	10

Net investment hedges

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Schedule of Hedges of Net Investments in International Operations

Net investment hedge derivative contract impacts on other comprehensive earnings and net earnings were:

			For the Three Months Ended June 30,												For the Six Months Ended June 30,
			2022						2021						2022						2021
			(in millions)
After-tax gain/(loss) on NIH contracts(1)			$	307					$	(36)					$	348					$	23

(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,
			2022						2021						2022						2021
			(in millions)
Amounts excluded from the assessment of    hedge effectiveness(1)			$	30					$	19					$	52					$	40

(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,
			2022						2021						2022						2021
			(in millions)
Euro notes			$	142					$	(31)					$	216					$	92
British pound sterling notes			19						(1)						27						(3)
Swiss franc notes			21						(17)						27						39
Canadian notes			11						(5)						7						(9)

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, 2022												As of December 31, 2021
			Asset Derivatives						Liability Derivatives						Asset Derivatives						Liability Derivatives
			(in millions)
Derivatives designated as accounting hedges:
Currency exchange contracts			$	3					$	7					$	—					$	—
Interest rate contracts			126						—						27						17
Net investment hedge derivative contracts (1)			387						21						117						45
			$	516					$	28					$	144					$	62
Derivatives not designated as    accounting hedges:
Currency exchange contracts			$	221					$	150					$	156					$	40
Commodity contracts			306						145						387						137
Equity method investment contracts (2)			—						3						—						3
			$	527					$	298					$	543					$	180
Total fair value			$	1,043					$	326					$	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 6, Equity Method Investments.

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, 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			$	67					$	—					$	67					$	—
Commodity contracts			161						109						52						—
Interest rate contracts			126						—						126						—
Net investment hedge contracts			366						—						366						—
Equity method investment contracts			(3)						—						(3)						—
Total derivatives			$	717					$	109					$	608					$	—

			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 June 30, 2022						As of December 31, 2021
			(in millions)
Currency exchange contracts:
Intercompany loans and forecasted interest payments			$	2,270					$	1,891
Forecasted transactions			6,245						4,831
Commodity contracts			11,131						9,694
Interest rate contracts			1,850						1,850
Net investment hedges:
Net investment hedge derivative contracts			7,090						3,915
Non-U.S. dollar debt designated as net investment hedges
Euro notes			3,339						3,622
British pound sterling notes			321						356
Swiss franc notes			775						811
Canadian dollar notes			466						475

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 https://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 https://asc.fasb.org/extlink&oid=126976982&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 https://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 https://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 https://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 https://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 https://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 https://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 https://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: