Hedging Transactions and Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following table summarizes the notional values as of June 30, 2023 and July 1, 2022 and pretax impact of changes in the fair values of instruments designated as net investment hedges and cash flow hedges in accumulated other comprehensive income (“OCI”) for the three and six-month periods ended June 30, 2023 and July 1, 2022 ($ in millions):


	Original Notional Amount		Notional Amount Outstanding		Gain (Loss) Recognized in OCI		Amounts Reclassified from OCI
For the Three-Month Period Ended June 30, 2023:
Net investment hedges:
Cross-currency contracts	$	3,875	$	3,000	$	(58)	$	—
Foreign currency denominated debt	5,828		5,828		6		—
Cash flow hedges:
Cross-currency contracts	4,000		3,300		(127)		20
Interest rate swaps	1,600		—		—		1
Total	$	15,303	$	12,128	$	(179)	$	21

For the Three-Month Period Ended July 1, 2022:
Net investment hedges:
Cross-currency contracts	$	3,875	$	3,000	$	216	$	—
Foreign currency denominated debt	5,870		5,870		271		—
Cash flow hedges:
Cross-currency contracts	4,000		4,000		381		(224)
Interest rate swaps	1,600		—		—		1
Total	$	15,345	$	12,870	$	868	$	(223)

For the Six-Month Period Ended June 30, 2023:
Net investment hedges:
Cross-currency contracts	$	3,875	$	3,000	$	(66)	$	—
Foreign currency denominated debt	5,828		5,828		(51)		—
Cash flow hedges:
Cross-currency contracts	4,000		3,300		(90)		63
Interest rate swaps	1,600		—		—		2
Total	$	15,303	$	12,128	$	(207)	$	65

For the Six-Month Period Ended July 1, 2022
Net investment hedges:
Cross-currency contracts	$	3,875	$	3,000	$	267	$	—
Foreign currency denominated debt	5,870		5,870		395		—
Cash flow hedges:
Cross-currency contracts	4,000		4,000		506		(340)
Interest rate swaps	1,600		—		—		2
Total	$	15,345	$	12,870	$	1,168	$	(338)

Schedule of Notional Amounts of Outstanding Derivative Positions


	Original Notional Amount		Notional Amount Outstanding		Gain (Loss) Recognized in OCI		Amounts Reclassified from OCI
For the Three-Month Period Ended June 30, 2023:
Net investment hedges:
Cross-currency contracts	$	3,875	$	3,000	$	(58)	$	—
Foreign currency denominated debt	5,828		5,828		6		—
Cash flow hedges:
Cross-currency contracts	4,000		3,300		(127)		20
Interest rate swaps	1,600		—		—		1
Total	$	15,303	$	12,128	$	(179)	$	21

For the Three-Month Period Ended July 1, 2022:
Net investment hedges:
Cross-currency contracts	$	3,875	$	3,000	$	216	$	—
Foreign currency denominated debt	5,870		5,870		271		—
Cash flow hedges:
Cross-currency contracts	4,000		4,000		381		(224)
Interest rate swaps	1,600		—		—		1
Total	$	15,345	$	12,870	$	868	$	(223)

For the Six-Month Period Ended June 30, 2023:
Net investment hedges:
Cross-currency contracts	$	3,875	$	3,000	$	(66)	$	—
Foreign currency denominated debt	5,828		5,828		(51)		—
Cash flow hedges:
Cross-currency contracts	4,000		3,300		(90)		63
Interest rate swaps	1,600		—		—		2
Total	$	15,303	$	12,128	$	(207)	$	65

For the Six-Month Period Ended July 1, 2022
Net investment hedges:
Cross-currency contracts	$	3,875	$	3,000	$	267	$	—
Foreign currency denominated debt	5,870		5,870		395		—
Cash flow hedges:
Cross-currency contracts	4,000		4,000		506		(340)
Interest rate swaps	1,600		—		—		2
Total	$	15,345	$	12,870	$	1,168	$	(338)

Schedule of Derivative and Non Derivative Instruments in Consolidated Condensed Balance Sheets

The Company’s derivative instruments, as well as its nonderivative debt instruments designated and qualifying as net investment hedges, were classified in the Company’s Consolidated Condensed Balance Sheets as follows ($ in millions):


	June 30, 2023		December 31, 2022
Derivative assets:

Other long-term assets	$	497	$	653




Nonderivative hedging instruments:
Notes payable and current portion of long-term debt	1,584		—
Long-term debt	4,244		5,777