DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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 condensed consolidated financial statements for the three months ended September 30, 2020 and 2019.

	Gain (loss) recognized in OCI				Location of gain (loss) in income statement	Gain (loss) reclassified from AOCI into income
(in millions)	2020		2019			2020		2019
Cash flow hedges
Interest rate contracts	$	31	$	(57)	Interest expense, net	$	—	$	—
Foreign exchange contracts	(6)		4		Cost of sales	(2)		2
Net investment hedges	(103)		96		Other (income) expense, net	—		—
Total	$	(78)	$	43		$	(2)	$	2

	Location of gain (loss) in income statement	Gain (loss) recognized in income
(in millions)		2020		2019
Undesignated derivative instruments
Foreign exchange contracts	Other (income) expense, net	$	7	$	(4)

The following tables summarize the gains and losses on our hedging instruments and the classification of those gains and losses within our condensed consolidated financial statements for the nine months ended September 30, 2020 and 2019.

	Gain (loss) recognized in OCI				Location of gain (loss) in income statement	Gain (loss) reclassified from AOCI into income
(in millions)	2020		2019			2020		2019
Cash flow hedges
Interest rate contracts	$	(144)	$	(91)	Interest expense, net	$	—	$	—
Foreign exchange contracts	1		4		Cost of sales	2		3
Net investment hedges	(104)		74		Other (income) expense, net	—		—
Total	$	(247)	$	(13)		$	2	$	3

	Location of gain (loss) in income statement	Gain (loss) recognized in income
(in millions)		2020		2019
Undesignated derivative instruments
Foreign exchange contracts	Other (income) expense, net	$	22	$	(16)

Classification and Fair Values of Derivative Instruments

The following table summarizes the classification and fair values of derivative instruments reported in the condensed consolidated balance sheet as of September 30, 2020.

	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
Interest rate contracts	Other non-current assets	$	—	Other non-current liabilities	$	179
Foreign exchange contracts	Prepaid expenses and other current assets	3		Accounts payable and accrued liabilities	3
Total derivative instruments designated as hedges		3			182
Undesignated derivative instruments
Foreign exchange contracts	Prepaid expenses and other current assets	12		Accounts payable and accrued liabilities	9
Total derivative instruments		$	15		$	191

The following table summarizes the classification and fair values of derivative instruments reported in the condensed consolidated balance sheet as of December 31, 2019.

	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
Interest rate contracts	Other non-current assets	$	10	Other non-current liabilities	$	52
Foreign exchange contracts	Prepaid expenses and other current assets	10		Accounts payable and accrued liabilities	—
Total derivative instruments designated as hedges		20			52
Undesignated derivative instruments
Foreign exchange contracts	Prepaid expenses and other current assets	1		Accounts payable and accrued liabilities	2
Total derivative instruments		$	21		$	54

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.

	September 30, 2020				December 31, 2019
(in millions)	Asset		Liability		Asset		Liability
Gross amounts recognized in the consolidated balance sheet	$	15	$	191	$	21	$	54
Gross amount subject to offset in master netting arrangements not offset in the consolidated balance sheet	(5)		(5)		(11)		(11)
Total	$	10	$	186	$	10	$	43

Amounts Recorded on Condensed Consolidated Balance Sheet Related to Fair Value Hedges

The following table presents the amounts recorded on the condensed consolidated balance sheet related to fair value hedges:

	Carrying amount of hedged item				Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged item (a)
(in millions)	Balance as of September 30, 2020		Balance as of December 31, 2019		Balance as of September 30, 2020		Balance as of December 31, 2019
Long-term debt	$	102	$	103	$	5	$	6

(a) These fair value hedges were terminated prior to December 31, 2019.