XML 62 R47.htm IDEA: XBRL DOCUMENT v3.25.0.1
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Financial Instruments
A summary of interest rate swaps outstanding at December 31, 2024, is as follows:
Forward Starting Floating-to-Fixed Interest Rate Swaps
(Notional amount in millions)
Notional amountFloating interest
rate to be received		Fixed interest
rate to be paid		Basis for contracted floating interest rate received
$78 —%2.52%6 month Euribor
78 —%2.38%6 month Euribor
The fair value of derivative financial instruments recognized in the Consolidated Balance Sheets is as follows:
(In millions)Notional
amount		Other
 current
assets		Other
noncurrent
assets		Other
current
liabilities		Other
noncurrent
liabilities		Type of
hedge		Term
December 31, 2024      
Derivatives designated as hedges      
Forward starting floating-to-fixed interest rate swaps
$156 $— $— $— $1 Cash flow11 years
Currency exchange contracts499 12 — 14 — Cash flow
1 to 13 months
Commodity contracts4 — — — — Cash flow
1 to 11 months
Currency exchange contracts545 3 — — — Net investment
3 months
Total $15 $— $14 $1  
Derivatives not designated as hedges     
Currency exchange contracts$4,945 $13  $29  
1 to 7 months
December 31, 2023      
Derivatives designated as hedges      
Forward starting floating-to-fixed interest rate swaps
$165 $— $— $— $3 Cash flow8 years
Currency exchange contracts505 17 3 7 1 Cash flow
1 to 25 months
Commodity contracts54 1 — 1 — Cash flow
1 to 12 months
Currency exchange contracts564 — — 1 — Net investment
3 months
Total $17 $3 $9 $4   
Derivatives not designated as hedges      
Currency exchange contracts$4,797 $12  $8  
1 to 7 months
Schedule of Notional Amounts of Outstanding Derivative Positions and Commodity Contracts
As of December 31, 2024, the volume of outstanding commodity contracts that were entered into to hedge forecasted transactions:
CommodityDecember 31, 2024Term
Copper1 Millions of pounds
1 to 11 months
Gold165 Troy ounces
1 month
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:
(In millions)Carrying amount of the hedged
assets (liabilities)
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged asset (liabilities)1
Location on Consolidated Balance SheetsDecember 31, 2024December 31, 2023December 31, 2024December 31, 2023
Long-term debt$(647)$(713)$(37)$(42)
1 At December 31, 2024 and 2023, these amounts include the cumulative liability amount of fair value hedging adjustments remaining for which the hedge accounting has been discontinued of $37 million and $42 million, respectively.
Schedule of Impact of Hedging Activities to Consolidated Statement of Income
The impact of cash flow and fair value hedging activities to the Consolidated Statements of Income is as follows:
2024
(In millions)Net salesCost of products soldInterest expense - net
Amounts from Consolidated Statements of Income$24,878 $15,375 $130 
Gain (loss) on derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps
Hedged item$— $— $(13)
Derivative designated as hedging instrument— — 13 
Currency exchange contracts
Hedged item$2 $(1)$— 
Derivative designated as hedging instrument(2)1 — 
Commodity contracts
Hedged item$— $(4)$— 
Derivative designated as hedging instrument— 4 — 
2023
(In millions)Net salesCost of products soldInterest expense - net
Amounts from Consolidated Statements of Income$23,196 $14,762 $151 
Gain (loss) on derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps
Hedged item$— $— $(13)
Derivative designated as hedging instrument— — 13 
Currency exchange contracts
Hedged item$(2)$(58)$— 
Derivative designated as hedging instrument2 58 — 
Commodity contracts
Hedged item$— $(1)$— 
Derivative designated as hedging instrument— 1 — 
2022
(In millions)Net salesCost of products soldInterest expense - net
Amounts from Consolidated Statements of Income$20,752 $13,865 $144 
Gain (loss) on derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps
Hedged item$— $— $(4)
Derivative designated as hedging instrument— — 4 
Currency exchange contracts
Hedged item$17 $(26)$— 
Derivative designated as hedging instrument(17)26 — 
Commodity contracts
Hedged item$— $4 $— 
Derivative designated as hedging instrument— (4)— 
Gain (loss) on derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps
Hedged item$— $— $8 
Derivative designated as hedging instrument— — (8)
Schedule of Amounts Recognized in Net Income
The impact of derivatives not designated as hedges to the Consolidated Statements of Income is as follows:
Gain (loss) recognized in Consolidated Statements of IncomeConsolidated Statements of Income classification
(In millions)202420232022
Gain (loss) on derivatives not designated as hedges 
Currency exchange contracts$(14)$57 $(56)Interest expense - net
Commodity contracts— — (15)Other income - net
Total$(14)$57 $(71)
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Loss)
The impact of derivative and non-derivative instruments designated as hedges to the Consolidated Statements of Income and Comprehensive Income is as follows:
 Gain (loss) recognized in other
 comprehensive (loss) income
(In millions)202420232022
Derivatives designated as cash flow hedges  
Forward starting floating-to-fixed interest rate swaps$5 $(2)$202 
Currency exchange contracts(15)66 13 
Commodity contracts4 — (5)
Derivatives designated as net investment hedges
Currency exchange contracts
Effective portion19 8 — 
Amount excluded from effectiveness testing12 15 — 
Non-derivative designated as net investment hedges  
Foreign currency denominated debt191 (110)171 
Total$216 $(24)$381 
 Location of gain (loss)
reclassified from
Accumulated other
comprehensive loss		Gain (loss) reclassified
from Accumulated other
comprehensive loss
(In millions)202420232022
Derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swapsInterest expense - net$13 $13 $4 
Currency exchange contractsNet sales and Cost of products sold(1)64 9 
Commodity contractsCost of products sold4 1 (4)
Derivatives designated as net investment hedges
Currency exchange contracts
Effective portionGain (loss) on sale of business— — — 
Amount excluded from effectiveness testingInterest expense - net15 12 — 
Non-derivative designated as net investment hedges
Foreign currency denominated debtGain (loss) on sale of business— — — 
Total$31 $89 $9