FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Estimated Fair Value of Assets and Liabilities

The following table provides information about assets and liabilities not carried at fair value and excludes finance leases, equity securities without readily determinable fair value and non-financial assets and liabilities. Substantially all of these assets are considered to be Level 3 and the vast majority of our liabilities’ fair value are considered Level 2.

		September 30, 2022				December 31, 2021
		Carrying amount (net)		Estimated fair value		Carrying amount (net)		Estimated fair value
Assets	Loans and other receivables	$	2,799	$	2,657	$	2,706	$	2,853
Liabilities	Borrowings (Note 11)	$	30,405	$	29,198	$	35,186	$	41,207
	Investment contracts (Note 12)	1,809		1,877		1,909		2,282

Fair Value of Derivative Assets

FAIR VALUE OF DERIVATIVES	September 30, 2022						December 31, 2021
	Gross Notional		All other assets		All other liabilities		Gross Notional		All other assets		All other liabilities
Currency exchange contracts	$	6,477	$	330	$	262	$	7,214	$	114	$	122
Interest rate contracts	50		2		1		2,071		75		4
Derivatives accounted for as hedges	$	6,527	$	333	$	263	$	9,285	$	188	$	126
Currency exchange contracts	$	53,416	$	1,682	$	2,390	$	64,097	$	794	$	756
Interest rate contracts	155		8		0		1369		5		1
Other contracts	1,662		218		53		1,674		387		10
Derivatives not accounted for as hedges	$	55,234	$	1,909	$	2,443	$	67,140	$	1,186	$	767
Gross derivatives	$	61,761	$	2,241	$	2,706	$	76,425	$	1,374	$	893
Netting and credit adjustments			$	(1,433)	$	(1,433)			$	(637)	$	(639)
Cash collateral adjustments			—		(173)				(54)		(42)
Net derivatives recognized in statement of financial position			$	808	$	1,101			$	684	$	212
Net accrued interest			$	—	$	—			$	10	$	5
Securities held as collateral			—		—				(2)		—
Net amount			$	808	$	1,101			$	691	$	217

Fair Value of Derivative Liabilities

FAIR VALUE OF DERIVATIVES	September 30, 2022						December 31, 2021
	Gross Notional		All other assets		All other liabilities		Gross Notional		All other assets		All other liabilities
Currency exchange contracts	$	6,477	$	330	$	262	$	7,214	$	114	$	122
Interest rate contracts	50		2		1		2,071		75		4
Derivatives accounted for as hedges	$	6,527	$	333	$	263	$	9,285	$	188	$	126
Currency exchange contracts	$	53,416	$	1,682	$	2,390	$	64,097	$	794	$	756
Interest rate contracts	155		8		0		1369		5		1
Other contracts	1,662		218		53		1,674		387		10
Derivatives not accounted for as hedges	$	55,234	$	1,909	$	2,443	$	67,140	$	1,186	$	767
Gross derivatives	$	61,761	$	2,241	$	2,706	$	76,425	$	1,374	$	893
Netting and credit adjustments			$	(1,433)	$	(1,433)			$	(637)	$	(639)
Cash collateral adjustments			—		(173)				(54)		(42)
Net derivatives recognized in statement of financial position			$	808	$	1,101			$	684	$	212
Net accrued interest			$	—	$	—			$	10	$	5
Securities held as collateral			—		—				(2)		—
Net amount			$	808	$	1,101			$	691	$	217

Effects of Derivatives on AOCI

	Gain (loss) recognized in AOCI for the three months ended September 30				Gain (loss) recognized in AOCI for the nine months ended September 30
	2022		2021		2022		2021
Cash flow hedges(a)	$	(64)	$	(30)	$	(187)	$	1
Net investment hedges(b)	396		191		691		290

(a) Primarily related to currency exchange and interest rate contracts.

(b) The carrying value of foreign currency debt designated as net investment hedges was $3,019 million and $4,449 million at September 30, 2022 and 2021, respectively. The total reclassified from AOCI into earnings was insignificant for both the three and nine months ended September 30, 2022 and 2021.

Effects of Derivatives on Earnings

The table below presents the gains (losses) of our derivative financial instruments in the Statement of Earnings (Loss):

	Three months ended September 30, 2022								Three months ended September 30, 2021
	Revenues		Interest Expense		SG&A		Other(a)		Revenues		Debt Extinguishment Costs		Interest Expense		SG&A		Other(a)
	$	19,084	$	390	$	2,868	$	14,567	$	18,569	$	—	$	462	$	2,745	$	13,752
Effect of cash flow hedges	$	(3)	$	(4)	$	(1)	$	6	$	6			$	(7)	$	—	$	(18)
Hedged items													190
Derivatives designated as hedging instruments													(241)
Effect of fair value hedges													$	(52)
Currency exchange contracts	$	—			$	59	$	(521)	$	2			$	(18)	$	(66)	$	(149)
Interest rate, commodity and equity contracts(b)	1				(26)		56		—				2		1		41
Effect of derivatives not designated as hedges	$	1	$	—	$	33	$	(465)	$	2	$	—	$	(17)	$	(65)	$	(109)

	Nine months ended September 30, 2022								Nine months ended September 30, 2021
	Revenues		Interest Expense		SG&A		Other(a)		Revenues		Debt Extinguishment Costs		Interest Expense		SG&A		Other(a)
	$	54,769	$	1,191	$	9,239	$	39,127	$	53,893	$	1,416	$	1,450	$	8,503	$	41,315
Effect of cash flow hedges	$	1	$	(17)	$	(1)	$	(46)	$	20			$	(29)	$	1	$	(38)
Hedged items			127										1,375
Derivatives designated as hedging instruments			(143)										(1,510)
Effect of fair value hedges			$	(16)									$	(135)
Currency exchange contracts	$	—			$	(236)	$	(829)	$	(4)			$	(18)	$	48	$	251
Interest rate, commodity and equity contracts(b)	3				(185)		226		2		48		—		113		160
Effect of derivatives not designated as hedges	$	3	$	—	$	(421)	$	(603)	$	(1)	$	48	$	(19)	$	161	$	411

(a) Amounts are inclusive of cost of sales and other income (loss).

(b) SG&A was primarily driven by hedges of deferred incentive compensation, and other income (loss) by hedges of Baker Hughes equity sale. Both hedging programs were to offset the earnings impact of the underlying.