Derivative Financial Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Income Effect of Derivative Instruments [Table Text Block]

The gains/(losses), by hedge designation, reported in income for the periods ended March 31 were as follows (in millions):

	First Quarter
Cash flow hedges	2022		2023
Reclassified from AOCI to Cost of sales
Foreign currency exchange contracts (a)	$	(90)	$	26
Commodity contracts (b)	58		(9)
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments	76		(140)
Fair value changes on hedging instruments	(986)		250
Fair value changes on hedged debt	991		(279)
Cross-currency interest rate swap contracts
Net interest settlements and accruals on hedging instruments	(3)		(14)
Fair value changes on hedging instruments	(37)		22
Fair value changes on hedged debt	41		(19)
Derivatives not designated as hedging instruments
Foreign currency exchange contracts (c)	(46)		(3)
Cross-currency interest rate swap contracts	(227)		85
Interest rate contracts	123		(12)
Commodity contracts	109		(11)
Total	$	9	$	(104)

__________

(a)For the first quarter of 2022 and 2023, a $128 million loss and a $63 million loss, respectively, were reported in Other comprehensive income/(loss), net of tax.

(b)For the first quarter of 2022 and 2023, a $284 million gain and an $8 million gain, respectively, were reported in Other comprehensive income/(loss), net of tax.

(c)For the first quarter of 2022 and 2023, a $44 million loss and a $19 million gain, respectively, were reported in Cost of sales, and a $2 million loss and a $22 million loss, respectively, were reported in Other income/(loss), net.

Balance Sheet Effect of Derivative Instruments [Table Text Block]

The fair value of our derivative instruments and the associated notional amounts were as follows (in millions):

	December 31, 2022						March 31, 2023
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Cash flow hedges
Foreign currency exchange contracts	$	11,536	$	376	$	52	$	16,998	$	316	$	102
Commodity contracts	990		16		56		1,012		15		40
Fair value hedges
Interest rate contracts	16,883		—		1,653		19,042		15		1,302
Cross-currency interest rate swap contracts	885		—		161		1,421		4		135
Derivatives not designated as hedging instruments
Foreign currency exchange contracts	20,851		162		285		19,718		136		164
Cross-currency interest rate swap contracts	6,635		15		653		6,115		38		528
Interest rate contracts	63,210		931		483		57,312		753		397
Commodity contracts	841		26		35		949		32		39
Total derivative financial instruments, gross (a) (b)	$	121,831	$	1,526	$	3,378	$	122,567	$	1,309	$	2,707
Current portion			$	1,101	$	1,656			$	813	$	1,462
Non-current portion			425		1,722				496		1,245
Total derivative financial instruments, gross			$	1,526	$	3,378			$	1,309	$	2,707

__________

(a)At December 31, 2022 and March 31, 2023, we held collateral of $210 million and $180 million, respectively, and we posted collateral of $201 million and $203 million, respectively.

(b)At December 31, 2022 and March 31, 2023, the fair value of assets and liabilities available for counterparty netting was $451 million and $438 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.