XML 41 R30.htm IDEA: XBRL DOCUMENT

Fair Value Measurements and Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2020

The following table summarizes the fair value of the Company’s derivative instruments and other financial instruments which are carried at fair value in the Company’s Consolidated Balance Sheets at September 30, 2020 and December 31, 2019:


	Assets					Liabilities
	Account	Fair Value				Account	Fair Value
Designated derivative instruments		September 30, 2020		December 31, 2019			September 30, 2020		December 31, 2019
Interest rate swap contracts	Other current assets	$	—	$	—	Other accruals	$	—	$	—
Interest rate swap contracts	Other assets	15		4		Other liabilities	—		—
Forward-starting interest rate swaps	Other current assets	—		—		Other accruals	—		—
Forward-starting interest rate swaps	Other assets	—		—		Other liabilities	4		—
Foreign currency contracts	Other current assets	14		6		Other accruals	28		15
Foreign currency contracts	Other assets	—		—		Other liabilities	29		14
Commodity contracts	Other current assets	1		—		Other accruals	—		—
Total designated		$	30	$	10		$	61	$	29

Other financial instruments
Marketable securities	Other current assets	$	80	$	23
Total other financial instruments		$	80	$	23

Schedule of hedged item and cumulative adjustment to carrying amount

The following amounts were recorded on the Condensed Consolidated Balance Sheet related to the cumulative basis adjustment for fair value hedges as of:


	September 30, 2020		December 31, 2019
Long-term debt:
Carrying amount of hedged item	$	414	$	403
Cumulative hedging adjustment included in the carrying amount	15		4

Schedule of notional values

The following tables present the notional values as of:


	September 30, 2020
	Foreign Currency Contracts		Foreign Currency Debt		Interest Rate Swaps		Forward-Starting Interest Rate Swaps		Commodity Contracts		Total
Fair Value Hedges	$	586	$	—	$	400	$	—	$	—	$	986
Cash Flow Hedges	797		—		—		300		16		1,113
Net Investment Hedges	585		3,487		—		—		—		4,072


	December 31, 2019
	Foreign Currency Contracts		Foreign Currency Debt		Interest Rate Swaps		Forward-Starting Interest Rate Swaps		Commodity Contracts		Total
Fair Value Hedges	$	388	$	—	$	400	$	—	$	—	$	788
Cash Flow Hedges	761		—		—		—		20		781
Net Investment Hedges	478		3,856		—		—		—		4,334

Schedule of gains (losses) recognized in Statements of Income

The following tables present the location and amount of gains (losses) recognized on the Company’s Condensed Consolidated Statements of Income:


	Three Months Ended September 30,
	2020						2019
	Cost of sales		Selling, general and administrative expenses		Interest (income) expense, net		Cost of sales		Selling, general and administrative expenses		Interest (income) expense, net
Gain (loss) on hedges recognized in income:
Interest rate swaps designated as fair value hedges:
Derivative instrument	$	—	$	—	$	2	$	—	$	—	$	(2)
Hedged items	—		—		(2)		—		—		2
Foreign currency contracts designated as fair value hedges:
Derivative instrument	—		(10)		—		—		—		—
Hedged items	—		10		—		—		—		—
Foreign currency contracts designated as cash flow hedges:
Amount reclassified from OCI	(1)		—		—		1		—		—
Commodity contracts designated as cash flow hedges:
Amount reclassified from OCI	(1)		—		—		—		—		—
Total gain (loss) on hedges recognized in income	$	(2)	$	—	$	—	$	1	$	—	$	—


	Nine Months Ended September 30,
	2020						2019
	Cost of sales		Selling, general and administrative expenses		Interest (income) expense, net		Cost of sales		Selling, general and administrative expenses		Interest (income) expense, net
Gain (loss) on hedges recognized in income:
Interest rate swaps designated as fair value hedges:
Derivative instrument	$	—	$	—	$	(11)	$	—	$	—	$	(15)
Hedged items	—		—		11		—		—		15
Foreign currency contracts designated as fair value hedges:
Derivative instrument	—		29		—		—		10		—
Hedged items	—		(29)		—		—		(10)		—
Foreign currency contracts designated as cash flow hedges:
Amount reclassified from OCI	6		—		—		5		—		—
Commodity contracts designated as cash flow hedges:
Amount reclassified from OCI	(2)		—		—		1		—		—
Total gain (loss) on hedges recognized in income	$	4	$	—	$	—	$	6	$	—	$	—

Schedule of gains (losses) included in Other Comprehensive Income

The following table presents the location and amount of unrealized gains (losses) included in OCI:


	Three Months Ended
	September 30,
	2020		2019
Foreign currency contracts designated as cash flow hedges:
Gain (loss) recognized in OCI	$	(7)	$	7

Forward-starting interest rate swaps designated as cash flow hedges:
Gain (loss) recognized in OCI	4		—

Commodity contracts designated as cash flow hedges:
Gain (loss) recognized in OCI	2		(1)
Foreign currency contracts designated as net investment hedges:
Gain (loss) on instruments	(21)		23
Gain (loss) on hedged items	21		(23)
Foreign currency debt designated as net investment hedges:
Gain (loss) on instruments	(171)		100
Gain (loss) on hedged items	171		(100)
Total unrealized gain (loss) on hedges recognized in OCI	$	(1)	$	6


	Nine Months Ended
	September 30,
	2020		2019
Foreign currency contracts designated as cash flow hedges:
Gain (loss) recognized in OCI	$	6	$	2
Forward-starting interest rate swaps designated as cash flow hedges:
Gain (loss) recognized in OCI	(4)		—
Commodity contracts designated as cash flow hedges:
Gain (loss) recognized in OCI	—		1
Foreign currency contracts designated as net investment hedges:
Gain (loss) on instruments	(8)		22
Gain (loss) on hedged items	8		(22)
Foreign currency debt designated as net investment hedges:
Gain (loss) on instruments	(174)		105
Gain (loss) on hedged items	174		(105)
Total unrealized gain (loss) on hedges recognized in OCI	$	2	$	3