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FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended
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Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Summary of foreign exchange derivative contracts outstanding | At September 30, 2021 and December 31, 2020, the following foreign currency derivative contracts were outstanding:
Foreign currency derivatives (in millions)*
Functional Currency |  | Traded Currency |  | Notional in traded currency September 30, 2021 |  | Notional in traded currency December 31, 2020 |  | Ending Duration
British pound |  | Euro |  | 80 |  |  | 97 |  |  | Dec - 22
Chinese renminbi |  | US dollar |  | 51 |  |  | 113 |  |  | Dec - 22
Chinese renminbi |  | Euro |  | 14 |  |  | — |  |  | Dec - 21
Euro |  | Polish zloty |  | 199 |  |  | 147 |  |  | Dec - 22
Euro |  | US dollar |  | 49 |  |  | 41 |  |  | Dec - 22
Korean won |  | US dollar |  | 12 |  |  | 19 |  |  | Dec - 21
US dollar |  | British pound |  | 10 |  |  | — |  |  | Dec - 22
US dollar |  | Euro |  | 113 |  |  | 55 |  |  | Nov - 21
US dollar |  | Korean won |  | 75,014 |  |  | 15,000 |  |  | Dec - 22
US dollar |  | Singapore dollar |  | 37 |  |  | 47 |  |  | Dec - 22
US dollar |  | Thailand baht |  | 1,720 |  |  | — |  |  | May - 22
US dollar |  | Mexican peso |  | 1,251 |  |  | 1,178 |  |  | Dec - 22
*Table above excludes non-significant traded currency pairings with total notional amounts less than $10 million U.S. dollar equivalent as of September 30, 2021 and December 31, 2020.
Schedule of foreign exchange contracts, statement of financial position | At September 30, 2021 and December 31, 2020, the following cross-currency swap contracts were outstanding:
| Cross-currency swaps
(millions of dollars) | September 30, 2021 |  | December 31, 2020 |  | Ending duration
US dollar to Euro: |  |  |  |  |
Fixed receiving notional | $ | 500 |  |  | $ | 500 |  |  | Mar - 25
Fixed paying notional | € | 450 |  |  | € | 450 |  |  | Mar - 25
US dollar to Euro: |  |  |  |  |
Fixed receiving notional | $ | 1,100 |  |  | $ | 1,100 |  |  | Jul - 27
Fixed paying notional | € | 976 |  |  | € | 976 |  |  | Jul - 27
US dollar to Japanese yen: |  |  |  |  |
Fixed receiving notional | $ | 100 |  |  | $ | 100 |  |  | Feb - 23
Fixed paying notional | ¥ | 10,978 |  |  | ¥ | 10,978 |  |  | Feb - 23
Schedule of derivatives instruments in statements of financial position | At September 30, 2021 and December 31, 2020, the following amounts were recorded in the Condensed Consolidated Balance Sheets as being payable to or receivable from counterparties under ASC Topic 815:
(in millions) |  | Assets |  | Liabilities
Derivatives designated as hedging instruments Under 815: |  | Location |  | September 30, 2021 |  | December 31, 2020 |  | Location |  | September 30, 2021 |  | December 31, 2020
Foreign currency |  | Prepayments and other current assets |  | $ | 5 |  |  | $ | 1 |  |  | Other current liabilities |  | $ | 8 |  |  | $ | 4 |
Foreign currency |  | Other non-current assets |  | $ | — |  |  | $ | — |  |  | Other non-current liabilities |  | $ | 1 |  |  | $ | 1 |
Net investment hedges |  | Other non-current assets |  | $ | 6 |  |  | $ | — |  |  | Other non-current liabilities |  | $ | 77 |  |  | $ | 161 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency |  | Prepayments and other current assets |  | $ | 8 |  |  | $ | 4 |  |  | Other current liabilities |  | $ | — |  |  | $ | 1 |
Foreign currency |  | Other non-current assets |  | $ | 2 |  |  | $ | — |  |  | Other non-current liabilities |  | $ | — |  |  | $ | — |
Schedule of cash flow hedges included in accumulated other comprehensive income (loss) | The table below shows deferred gains (losses) reported in AOCI as well as the amount expected to be reclassified to income in one year or less for designated net investment hedges. The amount expected to be reclassified to income in one year or less assumes no change in the current relationship of the hedged item at September 30, 2021 market rates.
(in millions) |  | Deferred gain (loss) in AOCI at |  | Gain (loss) expected to be reclassified to income in one year or less
Contract Type |  | September 30, 2021 |  | December 31, 2020 |
Net investment hedges: |  |  |  |  |  |
Foreign currency |  | $ | (7) |  |  | $ | (1) |  |  | $ | — |
Cross-currency swaps |  | (71) |  |  | (161) |  |  | — |
Foreign currency-denominated debt |  | 46 |  |  | (68) |  |  | — |
Total |  | $ | (32) |  |  | $ | (230) |  |  | $ | — |
Gains and (losses) on derivative instruments designated as net investment hedges were recognized in other comprehensive income (loss) during the periods presented below.
(in millions) |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Net investment hedges |  | 2021 |  | 2020 |  | 2021 |  | 2020
Foreign currency |  | $ | — |  |  | $ | — |  |  | $ | (6) |  |  | $ | 1 |
Cross-currency swaps |  | $ | 43 |  |  | $ | (89) |  |  | $ | 90 |  |  | $ | (71) |
Foreign currency-denominated debt |  | $ | 27 |  |  | $ | (24) |  |  | $ | 64 |  |  | $ | (26) |
Schedule of derivative instruments | Derivative instruments designated as hedging instruments as defined by ASC Topic 815 held during the period resulted in the following gains and losses recorded in income:
|  | Three Months Ended September 30, 2021
(in millions) |  | Net sales |  | Cost of sales |  | Selling, general and administrative expenses |  | Other comprehensive income (loss)
Total amounts of earnings and other comprehensive income(loss) line items in which the effects of cash flow hedges are recorded |  | $ | 3,416 |  |  | $ | 2,766 |  |  | $ | 343 |  |  | $ | (73) |
Gain (loss) on cash flow hedging relationships: |  |  |  |  |  |  |  |
Foreign currency: |  |  |  |  |  |  |  |
Gain (loss) recognized in other comprehensive income |  |  |  |  |  |  |  | $ | (2) |
Gain (loss) reclassified from AOCI to income |  | $ | — |  |  | $ | (1) |  |  | $ | — |  |  |
|  | Nine Months Ended September 30, 2021
(in millions) |  | Net sales |  | Cost of sales |  | Selling, general and administrative expenses |  | Other comprehensive income (loss)
Total amounts of earnings and other comprehensive income(loss) line items in which the effects of cash flow hedges are recorded |  | 11,183 |  |  | 8,953 |  |  | 1,084 |  |  | $ | (95) |
Gain (loss) on cash flow hedging relationships: |  |  |  |  |  |  |  |
Foreign currency: |  |  |  |  |  |  |  |
Gain (loss) recognized in other comprehensive income |  |  |  |  |  |  |  | $ | (5) |
Gain (loss) reclassified from AOCI to income |  | $ | — |  |  | $ | (2) |  |  | $ | — |  |  |
|  | Three Months Ended September 30, 2020
(in millions) |  | Net sales |  | Cost of sales |  | Selling, general and administrative expenses |  | Other comprehensive income (loss)
Total amounts of earnings and other comprehensive income(loss) line items in which the effects of cash flow hedges are recorded |  | $ | 2,534 |  |  | $ | 2,017 |  |  | $ | 204 |  |  | $ | 57 |
Gain (loss) on cash flow hedging relationships: |  |  |  |  |  |  |  |
Foreign currency: |  |  |  |  |  |  |  |
Gain (loss) recognized in other comprehensive income |  |  |  |  |  |  |  | $ | 1 |
Gain (loss) reclassified from AOCI to income |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |
|  | Nine Months Ended September 30, 2020
(in millions) |  | Net sales |  | Cost of sales |  | Selling, general and administrative expenses |  | Other comprehensive income (loss)
Total amounts of earnings and other comprehensive income(loss) line items in which the effects of cash flow hedges are recorded |  | $ | 6,239 |  |  | $ | 5,101 |  |  | $ | 601 |  |  | $ | (3) |
Gain (loss) on cash flow hedging relationships: |  |  |  |  |  |  |  |
Foreign currency: |  |  |  |  |  |  |  |
Gain (loss) recognized in other comprehensive income |  |  |  |  |  |  |  | $ | (1) |
Gain (loss) reclassified from AOCI to income |  | $ | — |  |  | $ | — |  |  | $ | (1) |  |  |
Schedule of derivative instruments, gain (loss) | Derivatives designated as net investment hedge instruments, as defined by ASC Topic 815, held during the period resulted in the following gains recorded in Interest expense on components excluded from the assessment of effectiveness:
(in millions) |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Net investment hedges |  | 2021 |  | 2020 |  | 2021 |  | 2020
Cross-currency swaps |  | $ | 6 |  |  | $ | 6 |  |  | $ | 16 |  |  | $ | 13 |
Schedule of derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments are used to hedge remeasurement exposures of monetary assets and liabilities denominated in currencies other than the operating units' functional currency. These derivatives resulted in the following gains recorded in income:
(in millions) |  |  |  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Contract Type |  | Location |  |  | 2021 |  | 2020 |  | 2021 |  | 2020
Foreign Currency |  | Selling, general and administrative expenses |  |  | $ | 6 |  |  | $ | (1) |  |  | $ | 11 |  |  | $ | 2 |

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