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Fair Value Measurements and Financial Instruments
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Financial Instruments Fair Value Measurements and Financial Instruments
The Company uses available market information and other valuation methodologies in assessing the fair value of financial instruments. Judgment is required in interpreting market data to develop the estimates of fair value and, accordingly, changes in assumptions or the estimation methodologies may affect the fair value estimates. The Company is exposed to the risk of credit loss in the event of nonperformance by counterparties to financial instrument contracts; however, nonperformance is considered unlikely and any nonperformance is unlikely to be material, as it is the Company’s policy to contract only with diverse, credit-worthy counterparties based upon both strong credit ratings and other credit considerations.

The Company is exposed to market risk from foreign currency exchange rates, interest rates and commodity price fluctuations. Volatility relating to these exposures is managed on a global basis by utilizing a number of techniques, including working capital management, sourcing strategies, selling price increases, selective borrowings in local currencies and entering into selective derivative instrument transactions, issued with standard features, in accordance with the Company’s treasury and risk management policies, which prohibit the use of derivatives for speculative purposes and leveraged derivatives for any purpose. It is the Company’s policy to enter into derivative instrument contracts with terms that match the underlying exposure being hedged.

The Company’s derivative instruments include forward-starting interest rate swaps, foreign currency contracts and commodity contracts. The Company utilizes forward-starting interest rate swaps to mitigate the risk of variability in interest rate for future debt issuances and these swaps are valued using observable benchmark rates (Level 2 valuation). The Company utilizes foreign currency contracts, including forward and swap contracts, option contracts, local currency deposits and local currency borrowings to hedge portions of its foreign currency purchases, assets and liabilities arising in the normal course of business and the net investment in certain foreign subsidiaries. These contracts are valued using observable market rates (Level 2 valuation). Commodity futures contracts are utilized to hedge the purchases of raw materials used in production. These contracts are measured using quoted commodity exchange prices (Level 1 valuation). The duration of foreign currency and commodity contracts generally does not exceed 12 months.

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, 2024 and December 31, 2023:

 AssetsLiabilities
  
Account		Fair ValueAccountFair Value
Designated derivative instrumentsJune 30, 2024December 31, 2023 June 30, 2024December 31, 2023
Foreign currency contractsOther current assets$48 $19 Other accruals$13 $25 
Commodity contractsOther current assets— — Other accruals3 1 
Total designated$48 $19  $16 $26 
Other financial instruments     
Marketable securitiesOther current assets$225 $179    
Total other financial instruments$225 $179    
The carrying amount of cash, cash equivalents, marketable securities, accounts receivable and short-term debt approximated fair value as of June 30, 2024 and December 31, 2023. The estimated fair value of the Company’s long-term debt, including the current portion, as of June 30, 2024 and December 31, 2023, was $7,575 and $7,862, respectively, and the related carrying value was $8,167 and $8,239, respectively. The estimated fair value of long-term debt was derived principally from quoted prices on the Company’s outstanding fixed-term notes (Level 2 valuation).

The following tables present the notional values as of:

 June 30, 2024
 Foreign Currency ContractsForeign Currency DebtCommodity Contracts 
Total
Fair Value Hedges $1,718 $— $— $1,718 
Cash Flow Hedges 957 — 32 989 
Net Investment Hedges445 4,530 — 4,975 

 December 31, 2023
 Foreign Currency ContractsForeign Currency DebtCommodity Contracts 
Total
Fair Value Hedges $1,625 $— $— $1,625 
Cash Flow Hedges 869 — 39 908 
Net Investment Hedges280 3,908 — 4,188 


The following table presents the location and amount of gain (loss) on fair value hedges recognized in the Company’s Condensed Consolidated Statements of Income:
Gain (Loss) Recognized in Income
Location of Gain (Loss) Recognized in IncomeThree Months Ended June 30,Six Months Ended June 30,
2024202320242023
Hedging instruments:
Foreign currency contractsSelling, general and administrative expenses$(1)$18 $(22)$23 
Total gain (loss) on fair value hedges $(1)$18 $(22)$23 
The following tables present the amount of gain (loss) on cash flow hedges recognized in the Company’s Accumulated Other Comprehensive Income (AOCI) and reclassification from AOCI into the Condensed Consolidated Statements of Income:

Gain (Loss) Recognized in AOCIAmount Reclassified from AOCI Into Income
Three Months Ended June 30,Location of Gain (Loss) Recognized in IncomeThree Months Ended June 30,
2024202320242023
Hedging instruments:
Foreign currency contracts$4 $(8)Cost of Sales$— $(1)
Commodity contracts(3)(5)Cost of Sales(3)(3)
Forward Starting Swaps (2)(4)Interest (income) expense, net2 1 
Total gain (loss) on cash flow hedges $(1)$(17)$(1)$(3)


Gain (Loss) Recognized in AOCIAmount Reclassified from AOCI Into Income
Six Months Ended June 30,Location of Gain (Loss) Recognized in IncomeSix Months Ended June 30,
2024202320242023
Hedging instruments:
Foreign currency contracts$7 $(9)Cost of Sales$(1)$3 
Commodity contracts(6)(6)Cost of Sales(4)— 
Forward Starting Swaps (4)15 Interest (income) expense, net4 3 
Total gain (loss) on cash flow hedges $(3)$— $(1)$6 


The following table presents the amount of gain (loss) on net investment hedges recognized in the Company’s AOCI:

Gain (Loss) Recognized in AOCI
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Hedging instruments:
Foreign currency contracts$22 $26 $24 $18 
Foreign currency debt28 113 134 40 
Total gain (loss) on net investment hedges$50 $139 $158 $58