DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Financial Instruments Recognized in Condensed Consolidated Balance Sheet

The fair value of derivative financial instruments recognized in the Consolidated Balance Sheets follows:

	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
June 30, 2021
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	1,800	$	—	$	76	$	—	$	—	Fair value	1 to 13 years
Forward starting floating-to-fixed  interest rate swaps	950		—		39		—		69		Cash flow	11 to 31 years
Currency exchange contracts	1,337		16		6		17		1		Cash flow	1 to 36 months
Commodity contracts	31		4		—		1		—		Cash flow	1 to 12 months
Total			$	20	$	121	$	18	$	70
Derivatives not designated as  hedges
Currency exchange contracts	$	5,894	$	14			$	27				1 to 12 months
Commodity contracts	27		2				—					1 month
Total			$	16			$	27
December 31, 2020
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	2,075	$	2	$	100	$	—	$	—	Fair value	6 months to 14 years
Forward starting floating-to-fixed  interest rate swaps	900		—		17		—		108		Cash flow	12 to 32 years
Currency exchange contracts	946		20		6		20		1		Cash flow	1 to 36 months
Commodity contracts	24		4		—		—		—		Cash flow	1 to 12 months
Total			$	26	$	123	$	20	$	109
Derivatives not designated as  hedges
Currency exchange contracts	$	5,227	$	43			$	34				1 to 12 months
Commodity contracts	18		2				—					1 month
Total			$	45			$	34

Schedule of Notional Amounts of Outstanding Derivative Positions

As of June 30, 2021, the volume of outstanding commodity contracts that were entered into to hedge forecasted transactions:

Commodity	June 30, 2021		Term
Copper	7	millions of pounds	1 to 12 months
Gold	1,320	Troy ounces	1 to 12 months

Schedule of Derivative Instruments Recorded in Balance Sheet

The following amounts were recorded on the Consolidated Balance Sheets related to fixed-to-floating interest rate swaps:

	Carrying amount of the hedged assets (liabilities)				Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged asset (liabilities) (a)
Location on Consolidated Balance Sheets	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
Long-term debt	$	(2,413)	$	(2,688)	$	(111)	$	(139)

(a) At June 30, 2021 and December 31, 2020, these amounts include the cumulative liability amount of fair value hedging adjustments remaining for which the hedge accounting has been discontinued of $35 and $37, respectively.

Schedule of Impact of Hedging Activities to Consolidated Statement of Income

The impact of hedging activities to the Consolidated Statements of Income are as follow:

	Three months ended June 30, 2021
	Net sales		Cost of products sold		Interest expense - net
Amounts from Consolidated Statements of Income	$	5,215	$	3,545	$	37
Gain (loss) on derivatives designated as cash flow hedges
Currency exchange contracts
Hedged item	$	1	$	—	$	—
Derivative designated as hedging instrument	(1)		—		—
Commodity contracts
Hedged item	$	—	$	(3)	$	—
Derivative designated as hedging instrument	—		3		—
Gain (loss) on derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps
Hedged item	$	—	$	—	$	7
Derivative designated as hedging instrument	—		—		(7)

	Three months ended June 30, 2020
	Net sales		Cost of products sold		Interest expense - net
Amounts from Consolidated Statements of Income	$	3,856	$	2,877	$	38
Gain (loss) on derivatives designated as cash flow hedges
Currency exchange contracts
Hedged item	$	5	$	4	$	—
Derivative designated as hedging instrument	(5)		(4)		—
Commodity contracts
Hedged item	$	—	$	—	$	—
Derivative designated as hedging instrument	—		—		—
Gain (loss) on derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps
Hedged item	$	—	$	—	$	(1)
Derivative designated as hedging instrument	—		—		1

	Six months ended June 30, 2021
	Net sales		Cost of products sold		Interest expense - net
Amounts from Consolidated Statements of Income	$	9,907	$	6,729	$	75
Gain (loss) on derivatives designated as cash flow hedges
Currency exchange contracts
Hedged item	$	4	$	1	$	—
Derivative designated as hedging instrument	(4)		(1)		—
Commodity contracts
Hedged item	$	—	$	(5)	$	—
Derivative designated as hedging instrument	—		5		—
Gain (loss) on derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps
Hedged item	$	—	$	—	$	26
Derivative designated as hedging instrument	—		—		(26)

	Six months ended June 30, 2020
	Net sales		Cost of products sold		Interest expense - net
Amounts from Consolidated Statements of Income	$	8,645	$	6,179	$	72
Gain (loss) on derivatives designated as cash flow hedges
Currency exchange contracts
Hedged item	$	5	$	1	$	—
Derivative designated as hedging instrument	(5)		(1)		—
Commodity contracts
Hedged item	$	—	$	—	$	—
Derivative designated as hedging instrument	—		—		—
Gain (loss) on derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps
Hedged item	$	—	$	—	$	(69)
Derivative designated as hedging instrument	—		—		69

Schedule of Amounts Recognized in Net Income

The impact of derivatives not designated as hedges to the Consolidated Statements of Income are as follow:

	Gain (loss) recognized in Consolidated Statements of Income				Consolidated Statements of Income classification
	Three months ended June 30
	2021		2020
Gain (loss) on derivatives not designated as hedges
Currency exchange contracts	$	86	$	46	Interest expense - net
Commodity contracts	7		1		Cost of products sold
Total	$	93	$	47

	Gain (loss) recognized in Consolidated Statements of Income				Consolidated Statements of Income classification
	Six months ended June 30
	2021		2020
Gain (loss) on derivatives not designated as hedges
Currency exchange contracts	$	23	$	(103)	Interest expense - net
Commodity contracts	9		1		Cost of products sold
Total	$	32	$	(102)

Schedule of Amounts Recognized in Accumulated Other Comprehensive Income

The impact of derivative and non-derivative instruments designated as hedges to the Consolidated Statements of Income and Comprehensive Income follow:

	Gain (loss) recognized in other comprehensive (loss) income				Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Three months ended June 30					Three months ended June 30
	2021		2020			2021		2020
Derivatives designated as    cash flow hedges
Forward starting floating-to-fixed  interest rate swaps	$	(68)	$	11	Interest expense - net	$	—	$	—
Currency exchange contracts	8		(3)		Net sales and Cost of products sold	(1)		(9)
Commodity contracts	2		3		Cost of products sold	3		—
Non-derivative designated as net    investment hedges
Foreign currency denominated debt	(40)		(38)		Interest expense - net	—		—
Total	$	(98)	$	(27)		$	2	$	(9)
	Gain (loss) recognized in other comprehensive (loss) income				Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Six months ended June 30					Six months ended June 30
	2021		2020			2021		2020
Derivatives designated as cash    flow hedges
Forward starting floating-to-fixed interest rate swaps	$	61	$	(136)	Interest expense - net	$	—	$	—
Currency exchange contracts	(5)		(45)		Net sales and Cost of products sold	(5)		(6)
Commodity contracts	5		1		Cost of products sold	5		—
Non-derivative designated as net    investment hedges
Foreign currency denominated debt	104		5		Interest expense - net	—		—
Total	$	165	$	(175)		$	—	$	(6)