FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 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.

		December 31, 2022				December 31, 2021
		Carrying amount (net)		Estimated fair value		Carrying amount (net)		Estimated fair value
Assets	Loans and other receivables	$	2,695	$	2,560	$	2,706	$	2,853
Liabilities	Borrowings (Note 10)	$	32,350	$	31,410	$	35,186	$	41,207
	Investment contracts (Note 12)	1,771		1,822		1,909		2,282

Fair Value of Derivative Assets

FAIR VALUE OF DERIVATIVES	December 31, 2022						December 31, 2021
	Gross Notional		All other assets		All other liabilities		Gross Notional		All other assets		All other liabilities
Currency exchange contracts	$	8,484	$	164	$	312	$	7,214	$	114	$	122
Interest rate contracts							2,071		75		4
Derivatives accounted for as hedges	$	8,484	$	164	$	312	$	9,285	$	188	$	126
Currency exchange contracts	$	56,950	$	977	$	1,118	$	64,097	$	794	$	756
Interest rate contracts	43		—		1		1,369		5		1
Other contracts	914		200		20		1,674		387		10
Derivatives not accounted for as hedges	$	57,907	$	1,178	$	1,139	$	67,140	$	1,186	$	767
Gross derivatives	$	66,392	$	1,341	$	1,451	$	76,425	$	1,374	$	893
Netting and credit adjustments			$	(859)	$	(862)			$	(637)	$	(639)
Cash collateral adjustments			—		—				(54)		(42)
Net derivatives recognized in statement of financial position			$	482	$	589			$	684	$	212
Net accrued interest			$	—	$	(4)			$	10	$	5
Securities held as collateral			—		—				(2)		—
Net amount			$	482	$	585			$	691	$	217

Fair Value of Derivative Liabilities

FAIR VALUE OF DERIVATIVES	December 31, 2022						December 31, 2021
	Gross Notional		All other assets		All other liabilities		Gross Notional		All other assets		All other liabilities
Currency exchange contracts	$	8,484	$	164	$	312	$	7,214	$	114	$	122
Interest rate contracts							2,071		75		4
Derivatives accounted for as hedges	$	8,484	$	164	$	312	$	9,285	$	188	$	126
Currency exchange contracts	$	56,950	$	977	$	1,118	$	64,097	$	794	$	756
Interest rate contracts	43		—		1		1,369		5		1
Other contracts	914		200		20		1,674		387		10
Derivatives not accounted for as hedges	$	57,907	$	1,178	$	1,139	$	67,140	$	1,186	$	767
Gross derivatives	$	66,392	$	1,341	$	1,451	$	76,425	$	1,374	$	893
Netting and credit adjustments			$	(859)	$	(862)			$	(637)	$	(639)
Cash collateral adjustments			—		—				(54)		(42)
Net derivatives recognized in statement of financial position			$	482	$	589			$	684	$	212
Net accrued interest			$	—	$	(4)			$	10	$	5
Securities held as collateral			—		—				(2)		—
Net amount			$	482	$	585			$	691	$	217

Effects of Derivatives on AOCI

	Gain (loss) recognized in AOCI for the year ended December 31
	2022		2021		2020
Cash flow hedges(a)	$	(206)	$	(86)	$	(61)
Net investment hedges(b)	230		487		(675)

(a) Primarily related to currency exchange contracts.

(b) The carrying value of foreign currency debt designated as net investment hedges was $3,329 million and $4,061 million at December 31, 2022 and 2021, respectively. The total reclassified from AOCI into earnings was zero, $(87) million and zero for the years ended December 31, 2022, 2021 and 2020, respectively.

Effects of Derivatives on Earnings

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

	2022										2021
	Revenues		Debt Extinguishment Costs		Interest Expense		SG&A		Other(a)		Revenues		Debt Extinguishment Costs		Interest Expense		SG&A		Other(a)
	$	76,555	$	465	$	1,607	$	12,781	$	56,766	$	74,196	$	6,524	$	1,876	$	11,716	$	56,719
Effect of cash flow hedges	$	(23)	$	—	$	(20)	$	(2)	$	(34)	$	27	$	—	$	(40)	$	1	$	(67)
Hedged items					127								70		1,413
Derivatives designated as hedging instruments					(143)								(66)		(1,549)
Effect of fair value hedges					$	(16)							$	3	$	(135)
Currency exchange contracts	$	5	$	—	$	—	$	(133)	$	(737)	$	(6)	$	(16)	$	(18)	$	(127)	$	44
Interest rate, commodity and equity contracts(b)	1		159		(4)		(135)		161		1		52		(3)		183		191
Effect of derivatives not designated as hedges	$	7	$	159	$	(4)	$	(269)	$	(575)	$	(5)	$	35	$	(22)	$	56	$	235

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

(b) SG&A was primarily driven by hedges of deferred incentive compensation, Other Income (loss) by hedges of Baker Hughes equity sale, and Debt Extinguishment Costs by hedges of debt tenders. These hedging programs were to offset the earnings impact of the underlying.