XML 97 R37.htm IDEA: XBRL DOCUMENT v3.20.1
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (Tables)
 3 Months Ended
Mar. 31, 2020
Derivative Instruments, Gain (Loss) [Line Items]  
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block]
The following table indicates the amount of gains and (losses) that have been recognized in the income statement for the fair value and cash flow hedges, as well as the associated gain or (loss) for the underlying hedged item for fair value hedges for the three months ended March 31, 2020 and 2019 (in millions):


Three Months Ended
March 31,
Location and Amount of Gain (Loss) Recognized in Income
on Fair Value and Cash Flow Hedging Relationships		20202019
RevenueInterest ExpenseRevenueInterest Expense
Gain or (loss) on fair value hedging relationships:
Interest Contracts:
Hedged items$—  $(36) $—  $(15) 
Derivatives designated as hedging instruments—  36  —  15  
Gains or (loss) on cash flow hedging relationships:
Interest Contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income—  (3) —  (6) 
Foreign Exchange Contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income64  —  23  —  
Total amounts of income and expense line items presented in the statement of income in which the effects of fair value or cash flow hedges are recorded$64  $(3) $23  $(6) 
Schedule of Notional Amounts of Outstanding Derivative Positions
As of March 31, 2020 and December 31, 2019, the notional amounts of our outstanding derivative positions were as follows (in millions):
 March 31, 2020December 31, 2019
Currency hedges:
EuroEUR4,018  EUR4,571  
British Pound SterlingGBP1,399  GBP1,494  
Canadian DollarCAD1,369  CAD1,402  
Hong Kong DollarHKD3,270  HKD3,327  
Interest rate hedges:
Fixed to Floating Interest Rate SwapsUSD3,674  USD3,674  
Floating to Fixed Interest Rate SwapsUSD778  USD778  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
Fair Value Hierarchy LevelGross Amounts Presented in Consolidated Balance SheetsNet Amounts if Right of
Offset had been Applied
Asset DerivativesBalance Sheet LocationMarch 31,
2020		December 31,
2019		March 31,
2020		December 31,
2019
Derivatives designated as hedges:
Foreign exchange contractsOther current assetsLevel 2$230  $138  $229  $131  
Interest rate contractsOther current assetsLevel 224  2  24  2  
Foreign exchange contractsOther non-current assetsLevel 2427  252  426  236  
Interest rate contractsOther non-current assetsLevel 234  21  31  20  
Derivatives not designated as hedges:
Foreign exchange contractsOther current assetsLevel 23  7  3  7  
Interest rate contractsOther current assetsLevel 215  —  13  —  
Interest rate contractsOther non-current assetsLevel 2—  12  —  11  
Total Asset Derivatives$733  $432  $726  $407  

Fair Value Hierarchy LevelGross Amounts Presented in
Consolidated Balance Sheets		Net Amounts if Right of
Offset had been Applied
Liability DerivativesBalance Sheet LocationMarch 31,
2020		December 31,
2019		March 31,
2020		December 31,
2019
Derivatives designated as hedges:
Foreign exchange contractsOther current liabilitiesLevel 2$1  $7  $—  $—  
Foreign exchange contractsOther non-current liabilitiesLevel 21  16  —  —  
Interest rate contractsOther non-current liabilitiesLevel 215  11  12  10  
Derivatives not designated as hedges:
Interest rate contractsOther current liabilitiesLevel 28  —  6  —  
Interest rate contractsOther non-
current liabilities		Level 2—  3  —  2  
Total Liability Derivatives$25  $37  $18  $12  
The following table indicates the amounts that were recorded in the consolidated balance sheets related to cumulative basis adjustments for fair value hedges as of March 31, 2020 and December 31, 2019 (in millions):
Line Item in the Consolidated Balance Sheets in Which the Hedged Item is IncludedCarrying Amount
of Hedged Liabilities		Cumulative Amount
of Fair Value Hedge
Adjustments		Carrying Amount
of Hedged Liabilities		Cumulative Amount
of Fair Value Hedge
Adjustments
March 31, 2020March 31, 2020December 31, 2019December 31, 2019
Long-term debt and finance leases$3,267  $73  $3,234  $40  
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)
The following table indicates the amount of gains and (losses) that have been recognized in AOCI for the three months ended March 31, 2020 and 2019 for those derivatives designated as cash flow hedges (in millions):

Three Months Ended March 31:
Derivative Instruments in Cash Flow Hedging RelationshipsAmount of Gain (Loss) Recognized in AOCI on Derivatives
20202019
Interest rate contracts$(1) $13  
Foreign exchange contracts347  104  
Total$346  $117  
The following table indicates the amount of gains and (losses) that have been recognized in AOCI within foreign currency translation adjustment for the three months ended March 31, 2020 and 2019 for those instruments designated as net investment hedges (in millions):
Three Months Ended March 31:
Non-derivative Instruments in Net Investment Hedging RelationshipsAmount of Gain (Loss) Recognized in AOCI on Debt
20202019
Foreign denominated debt$150  $73  
Total$150  $73  
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance
The following is a summary of the amounts recorded in the statements of consolidated income related to fair value changes and settlements of these interest rate swaps, foreign currency forward and investment market price forward contracts not designated as hedges for the three months ended March 31, 2020 and 2019 (in millions):
Derivative Instruments Not Designated in
Hedging Relationships		Location of Gain (Loss)
Recognized in Income		Amount of Gain (Loss) Recognized in Income
20202019
Three Months Ended March 31:
Interest rate contractsInterest expense$(2) $(2) 
Foreign exchange contractsInvestment income and other(51) (1) 
Total$(53) $(3)