Fair Value Measurements and Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Fair Value of Derivative Instruments and Other Financial 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 June 30, 2023 and December 31, 2022:


	Assets					Liabilities
	Account	Fair Value				Account	Fair Value
Designated derivative instruments		June 30, 2023		December 31, 2022			June 30, 2023		December 31, 2022




Foreign currency contracts	Other current assets	$	39	$	19	Other accruals	$	34	$	15

Commodity contracts	Other current assets	—		4		Other accruals	2		—
Total designated		$	39	$	23		$	36	$	15

Other financial instruments
Marketable securities	Other current assets	$	267	$	175
Total other financial instruments		$	267	$	175

Schedule of Notional Values

The following tables present the notional values as of:


	June 30, 2023
	Foreign Currency Contracts		Foreign Currency Debt		Commodity Contracts		Total
Fair Value Hedges	$	1,206	$	—	$	—	$	1,206
Cash Flow Hedges	865		—		35		900
Net Investment Hedges	348		4,495		—		4,843


	December 31, 2022
	Foreign Currency Contracts		Foreign Currency Debt		Commodity Contracts		Total
Fair Value Hedges	$	609	$	—	$	—	$	609
Cash Flow Hedges	840		—		26		866
Net Investment Hedges	138		4,797		—		4,935

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 June 30,
	2023						2022
	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	$	—	$	—	$	—	$	—	$	—	$	2
Hedged items	—		—		—		—		—		(2)
Foreign currency contracts designated as fair value hedges:
Derivative instrument	—		18		—		—		12		—
Hedged items	—		(18)		—		—		(12)		—
Foreign currency contracts designated as cash flow hedges:
Amount reclassified from OCI	(1)		—		—		3		—		—
Commodity contracts designated as cash flow hedges:
Amount reclassified from OCI	(3)		—		—		3		—		—
Forward-starting interest rate swaps designated as cash flow hedges:
Amount reclassified from OCI	—		—		1		—		—		—
Total gain (loss) on hedges recognized in income	$	(4)	$	—	$	1	$	6	$	—	$	—


	Six Months Ended June 30,
	2023						2022
	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
Hedged items	—		—		—		—		—		(6)
Foreign currency contracts designated as fair value hedges:
Derivative instrument	—		23		—		—		14		—
Hedged items	—		(23)		—		—		(14)		—
Foreign currency contracts designated as cash flow hedges:
Amount reclassified from OCI	3		—		—		5		—		—
Commodity contracts designated as cash flow hedges:
Amount reclassified from OCI	—		—		—		6		—		—
Forward-starting interest rate swaps designated as cash flow hedges:
Amount reclassified from OCI	$	—	$	—	$	3	$	—	$	—	$	—
Total gain (loss) on hedges recognized in income	$	3	$	—	$	3	$	11	$	—	$	—

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
	June 30,
	2023		2022
Foreign currency contracts designated as cash flow hedges:
Gain (loss) recognized in OCI	$	(8)	$	19

Forward-starting interest rate swaps designated as cash flow hedges:
Gain (loss) recognized in OCI	(4)		67

Commodity contracts designated as cash flow hedges:
Gain (loss) recognized in OCI	(5)		(3)
Foreign currency contracts designated as net investment hedges:
Gain (loss) on instruments	26		9
Gain (loss) on hedged items	(26)		(9)
Foreign currency debt designated as net investment hedges:
Gain (loss) on instruments	113		296
Gain (loss) on hedged items	(113)		(296)
Total unrealized gain (loss) on hedges recognized in OCI	$	(17)	$	83


	Six Months Ended
	June 30,
	2023		2022
Foreign currency contracts designated as cash flow hedges:
Gain (loss) recognized in OCI	$	(9)	$	13
Forward-starting interest rate swaps designated as cash flow hedges:
Gain (loss) recognized in OCI	15		124
Commodity contracts designated as cash flow hedges:
Gain (loss) recognized in OCI	(6)		4
Foreign currency contracts designated as net investment hedges:
Gain (loss) on instruments	18		3
Gain (loss) on hedged items	(18)		(3)
Foreign currency debt designated as net investment hedges:
Gain (loss) on instruments	40		360
Gain (loss) on hedged items	(40)		(360)
Total unrealized gain (loss) on hedges recognized in OCI	$	—	$	141