XML 48 R39.htm IDEA: XBRL DOCUMENT
v3.22.2

Financial Instruments (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2022
Investments, All Other Investments [Abstract] |
Carrying Amount and Estimated Fair Values of Financial Instruments | The carrying values and the estimated fair values of financial instruments at June 30, 2022 and December 31, 2021 consisted of the following:
| June 30, 2022 |  | December 31, 2021
(DOLLARS IN MILLIONS) | Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
LEVEL 1 |  |  |  |  |  |  |
Cash and cash equivalents(1) | $ | 569 |  |  | $ | 569 |  |  | $ | 711 |  |  | $ | 711 |
2025 Notes(2) | 1,000 |  |  | 896 |  |  | 1,001 |  |  | 968 |
2027 Notes(2) | 1,217 |  |  | 1,023 |  |  | 1,218 |  |  | 1,180 |
2030 Notes(2) | 1,510 |  |  | 1,215 |  |  | 1,511 |  |  | 1,466 |
2040 Notes(2) | 774 |  |  | 562 |  |  | 775 |  |  | 762 |
2050 Notes(2) | 1,572 |  |  | 1,074 |  |  | 1,572 |  |  | 1,556 |
LEVEL 2 |  |  |  |  |  |  |
Credit facilities and bank overdrafts(3) | 354 |  |  | 354 |  |  | 7 |  |  | 7 |
Derivatives |  |  |  |  |  |  |
Derivative assets(4) | 68 |  |  | 68 |  |  | — |  |  | — |
Derivative liabilities(4) | 7 |  |  | 7 |  |  | 7 |  |  | 7 |
Commercial paper(3) | 792 |  |  | 792 |  |  | 324 |  |  | 324 |
Long-term debt:(5) |  |  |  |  |  |  |
2022 Notes | 300 |  |  | 298 |  |  | 300 |  |  | 300 |
2023 Notes | 300 |  |  | 299 |  |  | 300 |  |  | 308 |
2024 Euro Notes | 526 |  |  | 522 |  |  | 565 |  |  | 585 |
2026 Euro Notes | 837 |  |  | 788 |  |  | 900 |  |  | 960 |
2028 Notes | 398 |  |  | 387 |  |  | 397 |  |  | 452 |
2047 Notes | 495 |  |  | 416 |  |  | 494 |  |  | 585 |
2048 Notes | 787 |  |  | 733 |  |  | 786 |  |  | 1,026 |
2024 Term Loan Facility(6) | 625 |  |  | 625 |  |  | 625 |  |  | 625 |
2026 Term Loan Facility(6) | 625 |  |  | 625 |  |  | 625 |  |  | 625 |
_______________________ (1)The carrying amount of cash and cash equivalents approximates fair value due to the short maturity of those instruments. (2)The fair value of the Notes is based on market quoted price as there is an active market for the Notes and observable market data and inputs. (3)The carrying amount approximates fair value as the interest rate is reset frequently based on current market rates as well as the short maturity of those instruments. (4)The carrying amount approximates fair value as the instruments are marked-to-market and held at fair value on the Consolidated Balance Sheets. (5)The fair value of the Company's long-term debt was calculated using discounted cash flows applying current interest rates and current credit spreads based on its own credit risk. (6)The carrying amount approximates fair value as the Term Loans were assumed at fair value and the interest rate is reset frequently based on current market rates.
Derivative Instruments Notional Amount Outstanding | The following table shows the notional amount of the Company’s derivative instruments outstanding as of June 30, 2022 and December 31, 2021:
(DOLLARS IN MILLIONS) | June 30, 2022 |  | December 31, 2021
Foreign currency contracts | $ | 55 |  |  | $ | 46 |
Commodity contracts | 3 |  |  | 10 |
Cross currency swaps | 1,700 |  |  | 300 |
Derivative Instruments Measured at Fair Value | The following tables show the Company’s derivative instruments measured at fair value (Level 2 of the fair value hierarchy), as reflected on the Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021:
| June 30, 2022
(DOLLARS IN MILLIONS) | Fair Value of Derivatives Designated as Hedging Instruments |  | Fair Value of Derivatives Not Designated as Hedging Instruments |  | Total Fair Value
Derivative assets(1) |  |  |  |  |
Foreign currency contracts | $ | — |  |  | $ | 5 |  |  | $ | 5 |
Cross currency swaps | 63 |  |  | — |  |  | 63 |
Total derivative assets | $ | 63 |  |  | $ | 5 |  |  | $ | 68 |
Derivative liabilities(2) |  |  |  |  |
Foreign currency contract | $ | — |  |  | $ | 1 |  |  | $ | 1 |
Cross currency swaps | 6 |  |  | — |  |  | 6 |
Total derivative liabilities | $ | 6 |  |  | $ | 1 |  |  | $ | 7 |
| December 31, 2021
(DOLLARS IN MILLIONS) | Fair Value of Derivatives Designated as Hedging Instruments |  | Fair Value of Derivatives Not Designated as Hedging Instruments |  | Total Fair Value
Derivative liabilities(2) |  |  |  |  |
Foreign currency contracts | $ | — |  |  | $ | 2 |  |  | $ | 2 |
Cross currency swaps | 5 |  |  | — |  |  | 5 |
Total derivative liabilities | $ | 5 |  |  | $ | 2 |  |  | $ | 7 |
_______________________ (1)Derivative assets are recorded to Prepaid expenses and other current assets and Other assets on the Consolidated Balance Sheets based on their respective maturity dates. (2)Derivative liabilities are recorded to Other current liabilities on the Consolidated Balance Sheets.
Derivative Instruments Which Were Not Designated as Hedging Instruments | The following table shows the effect of the Company’s derivative instruments which were not designated as hedging instruments in the Consolidated Statements of Income (Loss) and Comprehensive (Loss) Income for the three and six months ended June 30, 2022 and 2021:
| Amount of Gain (Loss) |  | Location of Gain (Loss) Recognized in Income on Derivative
(DOLLARS IN MILLIONS) | Three Months Ended June 30, |
2022 |  | 2021 |
Foreign currency contracts(1) | $ | — |  |  | $ | 8 |  |  | Other expense (income), net
| Amount of Gain (Loss) |  | Location of Gain (Loss) Recognized in Income on Derivative
(DOLLARS IN MILLIONS) | Six Months Ended June 30, |
2022 |  | 2021 |
Foreign currency contracts(1) | $ | 2 |  |  | $ | 5 |  |  | Other expense (income), net
_______________________ (1)The foreign currency contract net gains (losses) offset any recognized gains (losses) arising from the revaluation of the related intercompany loans during the same respective periods.
Derivative Instruments Designated as Cash Flow and Net Investment Hedging Instruments | The following table shows the effect of the Company’s derivative and non-derivative instruments designated as cash flow and net investment hedging instruments, net of tax, in the Consolidated Statements of Income (Loss) and Comprehensive (Loss) Income for the three and six months ended June 30, 2022 and 2021:
| Amount of Gain (Loss) Recognized in OCI on Derivative |  | Location of Gain (Loss) Reclassified from AOCI into Income |  | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
| Three Months Ended June 30, |  |  | Three Months Ended June 30,
(DOLLARS IN MILLIONS) | 2022 |  | 2021 |  |  | 2022 |  | 2021
Derivatives in Cash Flow Hedging Relationships: |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | — |  |  | $ | 2 |  |  | Cost of goods sold |  | $ | — |  |  | $ | (2) |
Derivatives in Net Investment Hedging Relationships: |  |  |  |  |  |  |  |  |
Cross currency swaps | 49 |  |  | (3) |  |  | N/A |  | — |  |  | — |
Non-Derivatives in Net Investment Hedging Relationships: |  |  |  |  |  |  |  |  |
2024 Euro Notes | 21 |  |  | (6) |  |  | N/A |  | — |  |  | — |
2021 Euro Notes & 2026 Euro Notes | 34 |  |  | (13) |  |  | N/A |  | — |  |  | — |
Total | $ | 104 |  |  | $ | (20) |  |  |  |  | $ | — |  |  | $ | (2) |
| Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) |  | Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) |  | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
| Six Months Ended June 30, |  |  | Six Months Ended June 30,
| 2022 |  | 2021 |  |  | 2022 |  | 2021
Derivatives in Cash Flow Hedging Relationships: |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | — |  |  | $ | 6 |  |  | Cost of goods sold |  | $ | — |  |  | $ | (4) |
Derivatives in Net Investment Hedging Relationships: |  |  |  |  |  |  |  |  |
Cross currency swaps | 48 |  |  | 6 |  |  | N/A |  | — |  |  | — |
Non-Derivatives in Net Investment Hedging Relationships: |  |  |  |  |  |  |  |  |
2024 Euro Notes | 30 |  |  | 14 |  |  | N/A |  | — |  |  | — |
2021 Euro Notes & 2026 Euro Notes | 48 |  |  | 32 |  |  | N/A |  | — |  |  | — |
Total | $ | 126 |  |  | $ | 58 |  |  |  |  | $ | — |  |  | $ | (4) |

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAllOtherInvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the effective portion of the gains and losses on derivative instruments designated (and non-derivative instruments) designated and qualifying in cash flow hedges and net investment hedges that was recognized in other comprehensive income (loss) during the current period. + 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 (b) -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsEffectOnOtherComprehensiveIncomeLossTableTextBlock
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 assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -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_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
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
- Definition Tabular disclosure of derivative instrument not designated or qualifying as hedging instrument. + 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 (e) -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4CC -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL109998890-113959 + Details
Name: | us-gaap_ScheduleOfOtherDerivativesNotDesignatedAsHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration