HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair value of derivative instruments designated and qualified as part of hedging relationship

The following table presents the fair values of the Company’s derivative instruments that were designated and qualified as part of a hedging relationship (in millions):

		Fair Value1,2
Derivatives Designated as Hedging Instruments	Balance Sheet Location1	June 30, 2023		December 31, 2022
Assets:
Foreign currency contracts	Prepaid expenses and other current assets	$	153	$	126
Foreign currency contracts	Other noncurrent assets	34		13
Total assets		$	187	$	139
Liabilities:
Foreign currency contracts	Accounts payable and accrued expenses	$	91	$	54
Foreign currency contracts	Other noncurrent liabilities	69		108
Commodity contracts	Accounts payable and accrued expenses	7		2
Interest rate contracts	Accounts payable and accrued expenses	13		—
Interest rate contracts	Other noncurrent liabilities	1,557		1,676
Total liabilities		$	1,737	$	1,840

1All of the Company’s derivative instruments are carried at fair value in our consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 16 for the net presentation of the Company’s derivative instruments.

2Refer to Note 16 for additional information related to the estimated fair value.

Derivatives Not Designated as Hedging Instruments

The following table presents the fair values of the Company’s derivative instruments that were not designated as hedging instruments (in millions):

		Fair Value1,2
Derivatives Not Designated as Hedging Instruments	Balance Sheet Location1	June 30, 2023		December 31, 2022
Assets:
Foreign currency contracts	Prepaid expenses and other current assets	$	90	$	46
Foreign currency contracts	Other noncurrent assets	21		22
Commodity contracts	Prepaid expenses and other current assets	6		34
Other derivative instruments	Prepaid expenses and other current assets	2		—
Total assets		$	119	$	102
Liabilities:
Foreign currency contracts	Accounts payable and accrued expenses	$	63	$	87
Foreign currency contracts	Other noncurrent liabilities	—		1
Commodity contracts	Accounts payable and accrued expenses	104		35
Commodity contracts	Other noncurrent liabilities	15		—
Other derivative instruments	Accounts payable and accrued expenses	5		3
Total liabilities		$	187	$	126

1All of the Company’s derivative instruments are carried at fair value in our consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 16 for the net presentation of the Company’s derivative instruments.

2Refer to Note 16 for additional information related to the estimated fair value.

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) and Other Comprehensive Income (OCI)

The following tables present the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on other comprehensive income (“OCI”), AOCI and earnings (in millions):

	Gain (Loss) Recognized in OCI		Location of Gain (Loss) Recognized in Income	Gain (Loss) Reclassified from AOCI into Income
Three Months Ended June 30, 2023
Foreign currency contracts	$	(22)	Net operating revenues	$	(7)
Foreign currency contracts	13		Cost of goods sold	4
Foreign currency contracts	—		Interest expense	(1)
Foreign currency contracts	22		Other income (loss) — net	3
Commodity contracts	(9)		Cost of goods sold	(3)
Total	$	4		$	(4)
Three Months Ended July 1, 2022
Foreign currency contracts	$	197	Net operating revenues	$	52
Foreign currency contracts	16		Cost of goods sold	2
Foreign currency contracts	—		Interest expense	(1)
Foreign currency contracts	(114)		Other income (loss) — net	(89)
Total	$	99		$	(36)

	Gain (Loss) Recognized in OCI		Location of Gain (Loss) Recognized in Income	Gain (Loss) Reclassified from AOCI into Income
Six Months Ended June 30, 2023
Foreign currency contracts	$	(58)	Net operating revenues	$	(6)
Foreign currency contracts	17		Cost of goods sold	8
Foreign currency contracts	—		Interest expense	(2)
Foreign currency contracts	9		Other income (loss) — net	3
Commodity contracts	(11)		Cost of goods sold	(6)
Total	$	(43)		$	(3)
Six Months Ended July 1, 2022
Foreign currency contracts	$	278	Net operating revenues	$	60
Foreign currency contracts	22		Cost of goods sold	3
Foreign currency contracts	—		Interest expense	(2)
Foreign currency contracts	(119)		Other income (loss) — net	(100)
Total	$	181		$	(39)

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following tables summarize the pretax impact that changes in the fair values of derivatives designated as fair value hedges had on earnings (in millions):

Hedging Instruments and Hedged Items	Location of Gain (Loss) Recognized in Income	Gain (Loss) Recognized in Income
		Three Months Ended
		June 30, 2023		July 1, 2022
Interest rate contracts	Interest expense	$	(102)	$	(474)
Fixed-rate debt	Interest expense	131		457
Net impact of fair value hedging instruments		$	29	$	(17)

Hedging Instruments and Hedged Items	Location of Gain (Loss) Recognized in Income	Gain (Loss) Recognized in Income
		Six Months Ended
		June 30, 2023		July 1, 2022
Interest rate contracts	Interest expense	$	106	$	(1,185)
Fixed-rate debt	Interest expense	(91)		1,166
Net impact of fair value hedging instruments		$	15	$	(19)

The following table summarizes the amounts recorded in our consolidated balance sheets related to hedged items in fair value hedging relationships (in millions):

					Cumulative Amount of Fair Value Hedging Adjustments1
	Carrying Values of Hedged Items				Included in the Carrying Values of Hedged Items				Remaining for Which Hedge Accounting Has Been Discontinued
Balance Sheet Location of Hedged Items	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Current maturities of long-term debt	$	545	$	—	$	(9)	$	—	$	—	$	—
Long-term debt	11,601		11,900		(1,584)		(1,664)		179		195

1Cumulative amount of fair value hedging adjustments does not include changes due to foreign currency exchange rate fluctuations.

Notional values and pretax impact of changes in the fair values of instruments designated as net investment hedges

The following table summarizes the notional values and pretax impact of changes in the fair values of instruments designated as net investment hedges (in millions):

	Notional Values				Gain (Loss) Recognized in OCI
	as of				Three Months Ended				Six Months Ended
	June 30, 2023		December 31, 2022		June 30, 2023		July 1, 2022		June 30, 2023		July 1, 2022
Foreign currency contracts	$	—	$	—	$	(1)	$	5	$	(1)	$	(1)
Foreign currency denominated debt	11,750		12,061		(80)		704		(234)		1,059
Total	$	11,750	$	12,061	$	(81)	$	709	$	(235)	$	1,058

Derivative Instruments, Not Designated as Hedging Instruments, Gain (Loss) in Earnings

The following tables present the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings (in millions):

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income	Gain (Loss) Recognized in Income
		Three Months Ended
		June 30, 2023		July 1, 2022
Foreign currency contracts	Net operating revenues	$	(10)	$	22
Foreign currency contracts	Cost of goods sold	23		10
Foreign currency contracts	Other income (loss) — net	11		(4)
Commodity contracts	Cost of goods sold	(84)		(155)
Other derivative instruments	Selling, general and administrative expenses	1		(18)
Total		$	(59)	$	(145)

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income	Gain (Loss) Recognized in Income
		Six Months Ended
		June 30, 2023		July 1, 2022
Foreign currency contracts	Net operating revenues	$	(17)	$	7
Foreign currency contracts	Cost of goods sold	51		23
Foreign currency contracts	Other income (loss) — net	—		38
Commodity contracts	Cost of goods sold	(130)		5
Other derivative instruments	Selling, general and administrative expenses	4		(21)
Total		$	(92)	$	52