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FINANCIAL INSTRUMENTS, DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 12 Months Ended
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Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Summary of Activity Relating to Securitization Arrangement | The following is a summary of the activity relating to the arrangement.
as of and for the years ended December 31 (in millions) | 2022 | 2021 | 2020
Sold receivables at beginning of year | $ | 81 |  | $ | 96 |  | $ | 79 |
Proceeds from sales of receivables | 291 |  | 339 |  | 348 |
Cash collections (remitted to the owners of the receivables) | (293) |  | (346) |  | (335) |
Effect of foreign exchange rate changes | (8) |  | (8) |  | 4 |
Sold receivables at end of year | $ | 71 |  | $ | 81 |  | $ | 96 |
Summary of Gains and Losses on Derivative Instruments | The following tables summarize the gains and losses on our hedging instruments and the classification of those gains and losses within our consolidated financial statements for the years ended December 31, 2022, 2021 and 2020.
(in millions) | Gain (loss) recognized in OCI | Location of gain (loss) in income statement | Gain (loss) reclassified from AOCI into income
2022 | 2021 | 2020 | 2022 | 2021 | 2020
Cash flow hedges |  |  |  |  |  |  |
Interest rate contracts | $ | — |  | $ | — |  | $ | (131) |  | Interest expense, net | $ | (6) |  | $ | (6) |  | $ | (1) |
Foreign exchange contracts | 28 |  | 5 |  | (21) |  | Cost of sales | 26 |  | (23) |  | (5) |
Net investment hedges | 141 |  | 200 |  | (224) |  | Other (income) expense, net | — |  | — |  | — |
Total | $ | 169 |  | $ | 205 |  | $ | (376) |  |  | $ | 20 |  | $ | (29) |  | $ | (6) |
| Location of gain (loss) in income statement |  | Gain (loss) recognized in income
(in millions) |  |  | 2022 | 2021 | 2020
Undesignated derivative instruments |  |  |  |  |
Foreign exchange contracts | Other (income) expense, net |  | $ | (30) |  | $ | (36) |  | $ | 49 |
Net of Tax Activity in Accumulated Other Comprehensive Income Related to Cash Flow Hedges | The following table summarizes net-of-tax activity in AOCI, a component of stockholders’ equity, related to our cash flow hedges.
as of and for the year ended December 31 (in millions) | 2022 | 2021 | 2020
Accumulated other comprehensive income (loss) balance at beginning of year | $ | (126) |  | $ | (153) |  | $ | (41) |
(Loss) gain in fair value of derivatives during the year | 22 |  | 4 |  | (117) |
Amount reclassified to earnings during the year | (15) |  | 23 |  | 5 |
Accumulated other comprehensive income (loss) balance at end of year | $ | (119) |  | $ | (126) |  | $ | (153) |
Classification and Fair Value Amounts of Derivative Instruments | The following table summarizes the classification and fair values of derivative instruments reported in the consolidated balance sheet as of December 31, 2022.
| Derivatives in asset positions |  | Derivatives in liability positions
(in millions) | Balance sheet location | Fair value |  | Balance sheet location | Fair value
Derivative instruments designated as hedges |  |  |  |  |
Foreign exchange contracts | Prepaid expenses and other current assets | $ | 8 |  |  | Accrued expenses and other current liabilities | $ | 5 |
Total derivative instruments designated as hedges |  | 8 |  |  |  | 5 |
Undesignated derivative instruments |  |  |  |  |
Foreign exchange contracts | Prepaid expenses and other current assets | 6 |  |  | Accrued expenses and other current liabilities | 7 |
Total derivative instruments |  | $ | 14 |  |  |  | $ | 12 |
The following table summarizes the classification and fair values of derivative instruments reported in the consolidated balance sheet as of December 31, 2021.
| Derivatives in asset positions |  | Derivatives in liability positions
(in millions) | Balance sheet location | Fair value |  | Balance sheet location | Fair value
Derivative instruments designated as hedges |  |  |  |  |
Foreign exchange contracts | Prepaid expenses and other current assets | $ | 6 |  |  | Accrued expenses and other current liabilities | $ | 3 |
Total derivative instruments designated as hedges |  | 6 |  |  |  | 3 |
Undesignated derivative instruments |  |  |  |  |
Foreign exchange contracts | Prepaid expenses and other current assets | 2 |  |  | Accrued expenses and other current liabilities | 2 |
Total derivative instruments |  | $ | 8 |  |  |  | $ | 5 |
Derivative Positions Presented on Net Basis | The following table provides information on our derivative positions as if they were presented on a net basis, allowing for the right of offset by counterparty.
| December 31, 2022 |  | December 31, 2021
(in millions) | Asset | Liability |  | Asset | Liability
Gross amounts recognized in the consolidated balance sheets | $ | 14 |  | $ | 12 |  |  | $ | 8 |  | $ | 5 |
Gross amount subject to offset in master netting arrangements not offset in the consolidated balance sheets | (4) |  | (4) |  |  | (2) |  | (2) |
Total | $ | 10 |  | $ | 8 |  |  | $ | 6 |  | $ | 3 |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents the amounts recorded on the consolidated balance sheets related to fair value hedges:
| Carrying amount of hedged items |  | Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged items (a)
(in millions) | Balance as of December 31, 2022 | Balance as of December 31, 2021 |  | Balance as of December 31, 2022 | Balance as of December 31, 2021
Long-term debt | $ | 101 |  | $ | 101 |  |  | $ | 4 |  | $ | 4 |
(a) These fair value hedges were terminated in 2018 and earlier periods.

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