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Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Carrying Amount and Estimated Fair Value of Financial Instruments

The carrying value and the estimated fair values of financial instruments at December 31 consisted of the following:

			2022												2021
(DOLLARS IN MILLIONS)			Carrying Value						Fair Value						Carrying Value						Fair Value
LEVEL 1
Cash and cash equivalents(1)			$	483					$	483					$	711					$	711
LEVEL 2
Credit facilities and bank overdrafts(2)			106						106						7						7
Derivatives
Derivative assets(3)			20						20						—						—
Derivative liabilities(3)			56						56						7						7
Commercial paper(2)			187						187						324						324
Long-term debt:
2022 Notes(4)			—						—						300						300
2023 Notes(4)			300						298						300						308
2024 Euro Notes(4)			532						519						565						585
2025 Notes(4)			1,000						884						1,001						968
2026 Euro Notes(4)			845						774						900						960
2027 Notes(4)			1,215						1,006						1,218						1,180
2028 Notes(4)			398						380						397						452
2030 Notes(4)			1,510						1,188						1,511						1,466
2040 Notes(4)			774						535						775						762
2047 Notes(4)			495						390						494						585
2048 Notes(4)			787						685						786						1,026
2050 Notes(4)			1,571						1,021						1,572						1,556
2024 Term Loan Facility(5)			625						625						625						625
2026 Term Loan Facility(5)			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 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.

(3)The carrying amount approximates fair value as the instruments are marked-to-market and held at fair value on the Consolidated Balance Sheets.

(4)The fair value of the Note is obtained from pricing services engaged by the Company, and the Company receives one price for each security. The fair value provided by the pricing services are estimated using pricing models, where the inputs to those models are based on observable market inputs or recent trades of similar securities. The inputs to the valuation techniques applied by the pricing services are typically benchmark yields, benchmark security prices, credit spreads, reported trades and broker-dealer quotes, all with reasonable levels of transparency.

(5)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 December 31, 2022 and December 31, 2021:

			December 31,
(DOLLARS IN MILLIONS)			2022						2021
Foreign currency contracts(1)			$	92					$	46
Commodity contracts(1)			(1)						10
Cross currency swaps			1,400						300

______________________

(1)Foreign currency contracts and commodity contracts are presented net of contracts bought and sold.

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 in the Consolidated Balance Sheets as of December 31, 2022 and December 31, 2021:

			December 31, 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			$	—					$	1					$	1
Cross currency swaps			19						—						19
Total derivative assets			$	19					$	1					$	20
Derivative liabilities(2)
Cross currency swaps			$	56					$	—					$	56

			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 Other assets in the Consolidated Balance Sheets.

(2)Derivative liabilities are recorded as Other current liabilities in 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 (Loss) Income and Comprehensive (Loss) Income for the years ended December 31, 2022 and December 31, 2021:

(DOLLARS IN MILLIONS)			Amount of Gain (Loss) For the year ended December 31,												Location of Gain (Loss) Recognized in Income on Derivative
			2022						2021
Foreign currency contracts			$	7					$	6					Other (income) expense, net

Derivative Instruments Designated as Cash Flow and Net Investment Hedging Instruments

The following table shows the effect of the Company’s derivative instruments designated as cash flow and net investment hedging instruments, net of tax, in the Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income for the years ended December 31, 2022 and December 31, 2021:

			Amount of Gain (Loss) Recognized in OCI on Derivative and Non-Derivative (Effective Portion)												Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)						Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
			For the years ended December 31,																		For the years ended December 31,
(DOLLARS IN MILLIONS)			2022						2021												2022						2021
Derivatives in Cash Flow Hedging Relationships:
Foreign currency contracts			$	—					$	7					Cost of goods sold						$	—					$	(6)
Interest rate swaps (1)			—						1						Interest expense						—						(1)
Derivatives in Net Investment Hedging Relationships:
Cross currency swaps			(16)						14						N/A						—						—
Non-Derivatives in Net Investment Hedging Relationships:
2024 Euro Notes			27						38						N/A						—						—
2021 Euro Notes & 2026 Euro Notes			43						72						N/A						—						—
Total			$	54					$	132											$	—					$	(7)

_______________________

(1)Interest rate swaps were entered into as pre-issuance hedges for the Company's bond offerings.

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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.

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-Name Accounting Standards Codification
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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.

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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).

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-Publisher FASB
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Tabular disclosure of derivative instrument not designated or qualifying as hedging instrument.

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