Fair Value Measurements and Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of derivative instruments

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 Condensed Consolidated Balance Sheets at September 30, 2022 and December 31, 2021:

	Assets					Liabilities
	Account	Fair Value				Account	Fair Value
Designated derivative instruments		September 30, 2022		December 31, 2021			September 30, 2022		December 31, 2021
Interest rate swap contracts	Other current assets	$	—	$	5	Other accruals	$	1	$	—
Forward-starting interest rate swaps	Other current assets	—		—		Other accruals	—		—
Forward-starting interest rate swaps	Other assets	—		20		Other liabilities	—		21
Foreign currency contracts	Other current assets	64		22		Other accruals	14		6
Commodity contracts	Other current assets	—		2		Other accruals	—		—
Total designated		$	64	$	49		$	15	$	27
Other financial instruments
Marketable securities	Other current assets	$	208	$	34
Total other financial instruments		$	208	$	34

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, 2022		December 31, 2021
Long-term debt:
Carrying amount of hedged item	$	399	$	405
Cumulative hedging adjustment included in the carrying amount	—		5

Schedule of notional values

The following tables present the notional values as of:

	September 30, 2022
	Foreign Currency Contracts		Foreign Currency Debt		Interest Rate Swaps		Forward-Starting Interest Rate Swaps		Commodity Contracts		Total
Fair Value Hedges	$	596	$	—	$	400	$	—	$	—	$	996
Cash Flow Hedges	792		—		—		—		28		820
Net Investment Hedges	444		3,838		—		—		—		4,282

	December 31, 2021
	Foreign Currency Contracts		Foreign Currency Debt		Interest Rate Swaps		Forward-Starting Interest Rate Swaps		Commodity Contracts		Total
Fair Value Hedges	$	566	$	—	$	400	$	—	$	—	$	966
Cash Flow Hedges	873		—		—		700		24		1,597
Net Investment Hedges	173		4,600		—		—		—		4,773

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,
	2022						2021
	Cost of sales		Selling, general and administrative expenses		Interest (income) expense, net		Cost of sales		Selling, general and administrative expenses		Interest (income) expense, net
Interest rate swaps designated as fair value hedges:
Derivative instrument	$	—	$	—	$	(12)	$	—	$	—	$	2
Hedged items	—		—		12		—		—		(2)
Foreign currency contracts designated as fair value hedges:
Derivative instrument	—		17		—		—		1		—
Hedged items	—		(17)		—		—		(1)		—
Foreign currency contracts designated as cash flow hedges:
Amount reclassified from OCI	4		—		—		(2)		—		—
Commodity contracts designated as cash flow hedges:
Amount reclassified from OCI	—		—		—		—		—		—
Total gain (loss) on hedges recognized in income	$	4	$	—	$	—	$	(2)	$	—	$	—

	Nine Months Ended September 30,
	2022						2021
	Cost of sales		Selling, general and administrative expenses		Interest (income) expense, net		Cost of sales		Selling, general and administrative expenses		Interest (income) expense, net
Interest rate swaps designated as fair value hedges:
Derivative instrument	$	—	$	—	$	(6)	$	—	$	—	$	6
Hedged items	—		—		6		—		—		(6)
Foreign currency contracts designated as fair value hedges:
Derivative instrument	—		31		—		—		(4)		—
Hedged items	—		(31)		—		—		4		—
Foreign currency contracts designated as cash flow hedges:
Amount reclassified from OCI	9		—		—		(14)		—		—
Commodity contracts designated as cash flow hedges:
Amount reclassified from OCI	6		—		—		5		—		—
Total gain (loss) on hedges recognized in income	$	15	$	—	$	—	$	(9)	$	—	$	—

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,
	2022		2021
Foreign currency contracts designated as cash flow hedges:
Gain (loss) recognized in OCI	$	11	$	8
Forward-starting interest rate swaps designated as cash flow hedges:
Gain (loss) recognized in OCI	(39)		12
Commodity contracts designated as cash flow hedges:
Gain (loss) recognized in OCI	—		(2)
Foreign currency contracts designated as net investment hedges:
Gain (loss) on instruments	12		19
Gain (loss) on hedged items	(12)		(19)
Foreign currency debt designated as net investment hedges:
Gain (loss) on instruments	276		112
Gain (loss) on hedged items	(276)		(112)
Total unrealized gain (loss) on hedges recognized in OCI	$	(28)	$	18

	Nine Months Ended
	September 30,
	2022		2021
Foreign currency contracts designated as cash flow hedges:
Gain (loss) recognized in OCI	$	24	$	12
Forward-starting interest rate swaps designated as cash flow hedges:
Gain (loss) recognized in OCI	85		10
Commodity contracts designated as cash flow hedges:
Gain (loss) recognized in OCI	4		—
Foreign currency contracts designated as net investment hedges:
Gain (loss) on instruments	15		23
Gain (loss) on hedged items	(15)		(23)
Foreign currency debt designated as net investment hedges:
Gain (loss) on instruments	636		261
Gain (loss) on hedged items	(636)		(261)
Total unrealized gain (loss) on hedges recognized in OCI	$	113	$	22