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DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (Tables) | 6 Months Ended
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Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of June 30, 2022 and December 31, 2021, the notional amounts of our outstanding derivative positions were as follows (in millions):
|  | June 30, 2022 |  | December 31, 2021
Currency hedges: |  |  |  |
Euro | EUR | 4,279 |  |  | 4,257 |
British Pound Sterling | GBP | 1,421 |  |  | 1,402 |
Canadian Dollar | CAD | 1,655 |  |  | 1,633 |
Hong Kong Dollar | HKD | 4,327 |  |  | 4,033 |
Interest rate hedges: |  |  |  |
Fixed to Floating Interest Rate Swaps | USD | 1,000 |  |  | 1,000 |
Floating to Fixed Interest Rate Swaps | USD | 28 |  |  | 28 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table indicates the location in the consolidated balance sheets where our derivative assets and liabilities have been recognized, the fair value hierarchy level applicable to each derivative type and the related fair values of those derivatives. We have master netting arrangements with substantially all of our counterparties giving us the right of offset for our derivative positions. However, we have not elected to offset the fair value positions of our derivative contracts recorded in the consolidated balance sheets. The columns labeled Net Amounts if Right of Offset had been Applied indicate the potential net fair value positions by type of contract and location in the consolidated balance sheets had we elected to apply the right of offset as of June 30, 2022 and December 31, 2021 (in millions):
|  |  |  | Fair Value Hierarchy Level |  | Gross Amounts Presented in Consolidated Balance Sheets |  | Net Amounts if Right of Offset had been Applied
Asset Derivatives |  | Balance Sheet Location |  |  | June 30, 2022 |  | December 31, 2021 |  | June 30, 2022 |  | December 31, 2021
Derivatives designated as hedges: |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency exchange contracts |  | Other current assets |  | Level 2 |  | $ | 214 |  |  | $ | 100 |  |  | $ | 207 |  |  | $ | 82 |
Interest rate contracts |  | Other current assets |  | Level 2 |  | — |  |  | 11 |  |  | — |  |  | 11 |
Foreign currency exchange contracts |  | Other non-current assets |  | Level 2 |  | 328 |  |  | 123 |  |  | 320 |  |  | 90 |
Derivatives not designated as hedges: |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency exchange contracts |  | Other current assets |  | Level 2 |  | 2 |  |  | 2 |  |  | 2 |  |  | 2 |
Total Asset Derivatives |  |  |  |  |  | $ | 544 |  |  | $ | 236 |  |  | $ | 529 |  |  | $ | 185 |
|  |  |  | Fair Value Hierarchy Level |  | Gross Amounts Presented in Consolidated Balance Sheets |  | Net Amounts if Right of Offset had been Applied
Liability Derivatives |  | Balance Sheet Location |  |  | June 30, 2022 |  | December 31, 2021 |  | June 30, 2022 |  | December 31, 2021
Derivatives designated as hedges: |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency exchange contracts |  | Other current liabilities |  | Level 2 |  | $ | 7 |  |  | $ | 19 |  |  | $ | — |  |  | $ | 1 |
Interest rate contracts |  | Other current liabilities |  | Level 2 |  | 1 |  |  | — |  |  | 1 |  |  | — |
Foreign currency exchange contracts |  | Other non-current liabilities |  | Level 2 |  | 8 |  |  | 33 |  |  | — |  |  | — |
Interest rate contracts |  | Other non-current liabilities |  | Level 2 |  | 6 |  |  | 10 |  |  | 6 |  |  | 10 |
Total Liability Derivatives |  |  |  |  |  | $ | 22 |  |  | $ | 62 |  |  | $ | 7 |  |  | $ | 11 |
The following table indicates the amounts that were recorded in the consolidated balance sheets related to cumulative basis adjustments for fair value hedges as of June 30, 2022 and December 31, 2021 (in millions):
Line Item in the Consolidated Balance Sheets in Which the Hedged Item is Included |  | Carrying Amount of Hedged Liabilities |  | Cumulative Amount of Fair Value Hedge Adjustments |  | Carrying Amount of Hedged Liabilities |  | Cumulative Amount of Fair Value Hedge Adjustments
| June 30, 2022 |  | June 30, 2022 |  | December 31, 2021 |  | December 31, 2021
Current maturities of long-term debt, commercial paper and finance leases |  | $ | 999 |  |  | $ | (1) |  |  | $ | 1,010 |  |  | $ | 11 |
Long-term debt and finance leases |  | $ | 280 |  |  | $ | 5 |  |  | $ | 280 |  |  | $ | 5 |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following table indicates the amount of gains and (losses) that have been recognized in the statements of consolidated income for fair value and cash flow hedges, as well as the associated gain or (loss) for the underlying hedged item for fair value hedges for the three and six months ended June 30, 2022 and 2021 (in millions):
|  | Three Months Ended June 30,
Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships |  | 2022 |  | 2021
| Revenue |  | Interest Expense |  | Investment Income and Other |  | Revenue |  | Interest Expense |  | Investment Income and Other
Gain or (loss) on fair value hedging relationships: |  |  |  |  |  |  |  |  |  |  |  |
Interest Contracts: |  |  |  |  |  |  |  |  |  |  |  |
Hedged items |  | $ | — |  |  | $ | 3 |  |  | $ | — |  |  | $ | — |  |  | $ | 4 |  |  | $ | — |
Derivatives designated as hedging instruments |  | — |  |  | (3) |  |  | — |  |  | — |  |  | (4) |  |  | — |
Gain or (loss) on cash flow hedging relationships: |  |  |  |  |  |  |  |  |  |  |  |
Interest Contracts: |  |  |  |  |  |  |  |  |  |  |  |
Amount of gain or (loss) reclassified from accumulated other comprehensive income |  | — |  |  | (2) |  |  | — |  |  | — |  |  | (3) |  |  | — |
Foreign Currency Exchange Contracts: |  |  |  |  |  |  |  |  |  |  |  |
Amount of gain or (loss) reclassified from accumulated other comprehensive income |  | 67 |  |  | — |  |  |  |  | 7 |  |  |  |  | — |
Total amounts of income and expense line items presented in the statement of income in which the effects of fair value or cash flow hedges are recorded |  | $ | 67 |  |  | $ | (2) |  |  | $ | — |  |  | $ | 7 |  |  | $ | (3) |  |  | $ | — |
|  | Six Months Ended June 30,
|  | 2022 |  | 2021
Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships |  | Revenue |  | Interest Expense |  | Investment Income and Other |  | Revenue |  | Interest Expense |  | Investment Income and Other
Gain or (loss) on fair value hedging relationships: |  |  |  |  |  |  |  |  |  |  |  |
Interest Contracts: |  |  |  |  |  |  |  |  |  |  |  |
Hedged items |  | $ | — |  |  | $ | 11 |  |  | $ | — |  |  | $ | — |  |  | $ | 10 |  |  | $ | — |
Derivatives designated as hedging instruments |  | — |  |  | (11) |  |  | — |  |  | — |  |  | (10) |  |  | — |
Gain or (loss) on cash flow hedging relationships: |  |  |  |  |  |  |  |  |  |  |  |
Interest Contracts: |  |  |  |  |  |  |  |  |  |  |  |
Amount of gain or (loss) reclassified from accumulated other comprehensive income |  | — |  |  | (5) |  |  | — |  |  | — |  |  | (5) |  |  | — |
Foreign Currency Exchange Contracts: |  |  |  |  |  |  |  |  |  |  |  |
Amount of gain or (loss) reclassified from accumulated other comprehensive income |  | 108 |  |  | — |  |  | — |  |  | 22 |  |  | — |  |  | — |
Total amounts of income and expense line items presented in the statement of income in which the effects of fair value or cash flow hedges are recorded |  | $ | 108 |  |  | $ | (5) |  |  | $ | — |  |  | $ | 22 |  |  | $ | (5) |  |  | $ | — |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table indicates the amount of gains and (losses) that have been recognized in AOCI for the three and six months ended June 30, 2022 and 2021 for those derivatives designated as cash flow hedges (in millions):
Three Months Ended June 30: |  |  |  |  |  |  |  |  |  |
Derivative Instruments in Cash Flow Hedging Relationships |  | Amount of Gain (Loss) Recognized in AOCI on Derivatives |  |  |  |  |  |
| 2022 |  | 2021 |  |  |  |  |  |
Interest rate contracts |  | $ | 1 |  |  | $ | (3) |  |  |  |  |  |  |
Foreign currency exchange contracts |  | 371 |  |  | (54) |  |  |  |  |  |  |
Total |  | $ | 372 |  |  | $ | (57) |  |  |  |  |  |  |
Six Months Ended June 30: |  |  |  |  |  |  |  |  |  |
Derivative Instruments in Cash Flow Hedging Relationships |  | Amount of Gain (Loss) Recognized in AOCI on Derivatives |  |  |  |  |  |
| 2022 |  | 2021 |  |  |  |  |  |
Interest rate contracts |  | $ | 4 |  |  | $ | — |  |  |  |  |  |  |
Foreign currency exchange contracts |  | 463 |  |  | 106 |  |  |  |  |  |  |
Total |  | $ | 467 |  |  | $ | 106 |  |  |  |  |  |  |
The following table indicates the amount of gains and (losses) that have been recognized in AOCI within foreign currency translation adjustment for the three and six months ended June 30, 2022 and 2021 for those instruments designated as net investment hedges (in millions):
Three Months Ended June 30: |  |  |  |
Non-derivative Instruments in Net Investment Hedging Relationships |  | Amount of Gain (Loss) Recognized in AOCI on Debt
| 2022 |  | 2021
Foreign denominated debt |  | $ | 181 |  |  | $ | (47) |
Total |  | $ | 181 |  |  | $ | (47) |
Six Months Ended June 30: |  |  |  |
Non-derivative Instruments in Net Investment Hedging Relationships |  | Amount of Gain (Loss) Recognized in AOCI on Debt
| 2022 |  | 2021
Foreign denominated debt |  | $ | 227 |  |  | $ | 77 |
Total |  | $ | 227 |  |  | $ | 77 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following is a summary of the amounts recorded in the statements of consolidated income related to fair value changes and settlements of foreign currency exchange forward contracts not designated as hedges for the three and six months ended June 30, 2022 and 2021 (in millions):
Derivative Instruments Not Designated in Hedging Relationships |  | Location of Gain (Loss) Recognized in Income |  | Amount of Gain (Loss) Recognized in Income
|  | 2022 |  | 2021
Three Months Ended June 30: |  |  |  |  |  |
Foreign currency exchange contracts |  | Investment income and other |  | $ | (58) |  |  | $ | 3 |
Total |  |  |  | $ | (58) |  |  | $ | 3 |
Six Months Ended June 30: |  |  |  |  |  |
Foreign currency exchange contracts |  | Investment income and other |  | $ | (86) |  |  | $ | (3) |
Total |  |  |  | $ | (86) |  |  | $ | (3) |

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