XML 47 R35.htm IDEA: XBRL DOCUMENT v3.19.2
Derivatives (Tables)
6 Months Ended
Jun. 30, 2019
Gain (loss) on derivative instruments designated as cash flow hedges

​

​

​

​

​

​

​

​

​

​

​

​

​

Pretax Gain (Loss)

​

​

​

​

​

 

​

​

Recognized in Other

​

Pretax Gain (Loss) Reclassified

 

​

​

Comprehensive

​

from Accumulated Other

 

​

​

Income on Derivative

​

Comprehensive Income into Income

 

Three months ended June 30, 2019 (Millions)

    

Amount

    

Location

    

Amount

 

Foreign currency forward/option contracts

​

$

2

 

Cost of sales

​

$

21

​

Interest rate swap contracts

​

 

(32)

 

Interest expense

​

 

(1)

​

Total

​

$

(30)

​

​

​

$

20

​

​

​

​

​

​

​

​

​

​

​

​

Six months ended June 30, 2019 (Millions)

    

Amount

    

Location

    

Amount

 

Foreign currency forward/option contracts

​

$

32

 

Cost of sales

​

$

28

​

Interest rate swap contracts

​

 

(49)

 

Interest expense

​

 

(1)

​

Total

​

$

(17)

​

​

​

$

27

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pretax Gain (Loss) Recognized in

​

​

 

​

​

Pretax Gain (Loss)

​

Income on Effective Portion of

​

Ineffective Portion of Gain

 

​

​

Recognized in Other

​

Derivative as a Result of

​

(Loss) on Derivative and

 

​

​

Comprehensive

​

Reclassification from

​

Amount Excluded from

 

​

​

Income on Effective

​

Accumulated Other

​

Effectiveness Testing

 

​

​

Portion of Derivative

​

Comprehensive Income

​

Recognized in Income

 

Three months ended June 30, 2018 (Millions)

    

Amount

    

Location

    

Amount

    

Location

    

Amount

 

Foreign currency forward/option contracts

​

$

179

 

Cost of sales

​

$

(27)

 

Cost of sales

​

$

—

​

Interest rate swap contracts

​

 

3

 

Interest expense

​

 

(1)

 

Interest expense

​

 

—

​

Total

​

$

182

​

​

​

$

(28)

​

​

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six months ended June 30, 2018 (Millions)

    

Amount

    

Location

    

Amount

    

Location

    

Amount

 

Foreign currency forward/option contracts

​

$

100

 

Cost of sales

​

$

(61)

 

Cost of sales

​

$

—

​

Interest rate swap contracts

​

 

—

 

Interest expense

​

 

(1)

 

Interest expense

​

 

—

​

Total

​

$

100

​

​

​

$

(62)

​

​

​

$

—

​

​

Gain (loss) on derivative instruments designated as fair value hedges

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gain (Loss) on Derivative

​

Gain (Loss) on Hedged Item

 

​

​

Recognized in Income

​

Recognized in Income

 

Three months ended June 30, 2018 (Millions)

    

Location

    

Amount

    

Location

    

Amount

 

Interest rate swap contracts

 

Interest expense

​

$

(1)

 

Interest expense

​

$

1

​

Total

​

​

​

$

(1)

​

​

​

$

1

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six months ended June 30, 2018 (Millions)

    

Location

    

Amount

    

Location

    

Amount

 

Interest rate swap contracts

 

Interest expense

​

$

(12)

 

Interest expense

​

$

12

​

Total

​

​

​

$

(12)

​

​

​

$

12

​

​

The following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Cumulative Amount of Fair Value Hedging

 

​

​

Carrying Value of the

​

Adjustment Included in the Carrying Value

 

​

​

Hedged Liabilities (in millions)

​

of the Hedged Liabilities (in millions)

 

Location on the Consolidated Balance Sheet

    

June 30, 2019

    

December 31, 2018

    

June 30, 2019

    

December 31, 2018

 

Short-term borrowings and current portion of long-term debt

 

$

—

​

$

596

 

$

—

​

$

(4)

​

Long-term debt

​

​

1,284

​

​

1,276

​

​

26

​

​

18

​

Total

​

$

1,284

​

$

1,872

​

$

26

​

$

14

​

​

Gain (loss) on derivative and non-derivative instruments designated as net investment hedges

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

​

​

​

​

​

​

​

 

​

​

Pretax Gain (Loss)

​

​

​

​

​

 

​

​

Recognized as

​

​

​

​

​

 

​

​

Cumulative Translation

​

Amount Excluded

 

​

​

within Other

​

from Effectiveness Testing

 

​

​

Comprehensive Income

​

Recognized in Income

 

Three months ended June 30, 2019 (Millions)

    

Amount

    

Location

    

Amount

 

Foreign currency denominated debt

​

$

(64)

 

Cost of sales

​

$

—

​

Foreign currency forward contracts

​

 

(10)

 

Cost of sales

​

 

7

​

Total

​

$

(74)

​

​

​

$

7

​

​

​

​

​

​

​

​

​

​

​

​

Six months ended June 30, 2019 (Millions)

    

Amount

    

Location

    

Amount

 

Foreign currency denominated debt

​

$

28

 

Cost of sales

​

$

—

​

Foreign currency forward contracts

​

 

5

 

Cost of sales

​

 

12

​

Total

​

$

33

​

​

​

$

12

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pretax Gain (Loss)

​

​

​

​

​

 

​

​

Recognized as

​

​

​

​

​

 

​

​

Cumulative Translation

​

​

​

​

​

 

​

​

within Other

​

Ineffective Portion of Gain (Loss) on

 

​

​

Comprehensive Income

​

Instrument and Amount Excluded

 

​

​

on Effective Portion of

​

from Effectiveness Testing

 

​

​

Instrument

​

Recognized in Income

 

Three months ended June 30, 2018 (Millions)

    

Amount

    

Location

    

Amount

 

Foreign currency denominated debt

​

$

299

 

Cost of sales

​

$

—

​

Foreign currency forward contracts

​

​

23

​

Cost of sales

​

​

1

​

Total

​

$

322

​

​

​

$

1

​

​

​

​

​

​

​

​

​

​

​

​

Six months ended June 30, 2018 (Millions)

    

Amount

    

Location

    

Amount

 

Foreign currency denominated debt

​

$

171

 

N/A

​

$

(2)

​

Foreign currency forward contracts

​

​

17

​

Cost of sales

​

​

—

​

Total

​

$

188

​

​

​

$

(2)

​

Gain (loss) on derivative instruments not designated as hedging instruments

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended June 30, 2019

​

Six months ended June 30, 2019

 

​

​

Gain (Loss) on Derivative Recognized in

​

Gain (Loss) on Derivative Recognized in

 

​

​

Income

​

Income

 

(Millions)

    

Location

    

Amount

​

Location

    

Amount

 

Foreign currency forward/option contracts

 

Cost of sales

​

$

—

​

Cost of sales

​

$

(2)

​

Foreign currency forward contracts

 

Interest expense

​

 

(10)

​

Interest expense

​

 

(18)

​

Total

​

​

​

$

(10)

​

​

​

$

(20)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended June 30, 2018

​

Six months ended June 30, 2018

​

​

​

Gain (Loss) on Derivative Recognized in

​

Gain (Loss) on Derivative Recognized in

​

​

​

Income

​

Income

​

(Millions)

    

Location

    

Amount

​

Location

    

Amount

​

Foreign currency forward/option contracts

 

Cost of sales

​

$

3

​

Cost of sales

​

$

—

​

Foreign currency forward contracts

 

Interest expense

​

 

(114)

​

Interest expense

​

 

(91)

​

Total

​

​

​

$

(111)

​

​

​

$

(91)

​

Location in consolidated statement of income and pre-tax amounts recognized in income related to derivative instruments designated in cash flow or fair value hedging relationship

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Location and Amount of Gain (Loss) Recognized in Income

Location and Amount of Gain (Loss) Recognized in Income

​

​

​

Three months ended June 30, 2019

Six months ended June 30, 2019

​

(Millions)

​

Cost of sales

​

Other expense
(income), net

​

Cost of Goods Sold

​

​

Other expense (income), net)

​

Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of cash flow or fair value hedges are recorded

​

$

4,313

​

$

256

$

8,623

​

$

304

​

​

​

​

​

​

​

​

​

​

​

​

​

​

The effects of fair value and cash flow hedging:

​

​

​

​

​

​

​

​

​

​

​

​

Gain or (loss) on cash flow hedging relationships:

​

​

​

​

​

​

​

​

​

​

​

​

Foreign currency forward/option contracts:

​

​

​

​

​

​

​

​

​

​

​

​

Amount of gain or (loss) reclassified from accumulated other comprehensive income into income

​

$

21

​

$

—

$

28

​

$

—

​

Interest rate swap contracts:

​

​

​

​

​

​

​

​

​

​

​

​

Amount of gain or (loss) reclassified from accumulated other comprehensive income into income

​

​

—

​

​

(1)

​

—

​

​

(1)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gain or (loss) on fair value hedging relationships:

​

​

​

​

​

​

​

​

​

​

​

​

Interest rate swap contracts:

​

​

​

​

​

​

​

​

​

​

​

​

Hedged items

​

$

—

​

$

(7)

$

—

​

$

(12)

​

Derivatives designated as hedging instruments

​

​

—

​

​

7

​

—

​

​

12

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Location and Fair Value of Derivative Instruments

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gross

    

Assets

    

Liabilities

 

June 30, 2019

​

Notional

​

​

​

Fair

​

​

​

Fair

 

(Millions)

​

Amount

​

Location

​

Value Amount

​

Location

​

Value Amount

 

Derivatives designated as

​

​

​

​

​

​

​

​

​

​

​

​

​

​

hedging instruments

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Foreign currency forward/option contracts

​

$

3,072

 

Other current assets

​

$

67

 

Other current liabilities

​

$

14

​

Foreign currency forward/option contracts

​

 

1,092

 

Other assets

​

 

46

 

Other liabilities

​

 

3

​

Interest rate swap contracts

​

 

1,804

 

Other assets

​

 

21

 

Other liabilities

​

 

59

​

Total derivatives designated as hedging instruments

​

​

​

​

​

​

$

134

​

​

​

$

76

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Derivatives not designated as

​

​

​

​

​

​

​

​

​

​

​

​

​

​

hedging instruments

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Foreign currency forward/option contracts

​

$

2,166

 

Other current assets

​

$

6

 

Other current liabilities

​

$

9

​

Total derivatives not designated as hedging instruments

​

​

​

​

​

​

$

6

​

​

​

$

9

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total derivative instruments

​

​

​

​

​

​

$

140

​

​

​

$

85

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gross

    

Assets

    

Liabilities

 

December 31, 2018

​

Notional

​

​

​

Fair

​

​

​

Fair

 

(Millions)

​

Amount

​

Location

​

Value Amount

​

Location

​

Value Amount

 

Derivatives designated as

​

​

​

​

​

​

​

​

​

​

​

​

​

​

hedging instruments

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Foreign currency forward/option contracts

​

$

2,277

 

Other current assets

​

$

74

 

Other current liabilities

​

$

12

​

Foreign currency forward/option contracts

​

​

1,099

​

Other assets

​

​

39

​

Other liabilities

​

​

4

​

Interest rate swap contracts

​

 

1,000

 

Other current assets

​

 

—

 

Other current liabilities

​

 

14

​

Interest rate swap contracts

​

 

1,403

 

Other assets

​

 

19

 

Other liabilities

​

 

17

​

Total derivatives designated as hedging instruments

​

​

​

​

​

​

$

132

​

​

​

$

47

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Derivatives not designated as

​

​

​

​

​

​

​

​

​

​

​

​

​

​

hedging instruments

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Foreign currency forward/option contracts

​

$

2,484

 

Other current assets

​

$

14

 

Other current liabilities

​

$

6

​

Total derivatives not designated as hedging instruments

​

​

​

​

​

​

$

14

​

​

​

$

6

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total derivative instruments

​

​

​

​

​

​

$

146

​

​

​

$

53

​

​

Offsetting Assets

​

Offsetting of Financial Assets under Master Netting Agreements with Derivative Counterparties

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gross Amounts not Offset in the

​

​

​

 

​

    

​

    

Consolidated Balance Sheet that are Subject

    

​

​

 

​

​

Gross Amount of

​

to Master Netting Agreements

​

​

​

 

​

​

Derivative Assets

​

Gross Amount of

​

​

​

​

 

​

​

Presented in the

​

Eligible Offsetting

​

​

​

​

 

June 30, 2019

​

Consolidated

​

Recognized

​

Cash Collateral

​

Net Amount of

 

(Millions)

​

Balance Sheet

​

Derivative Liabilities

​

Received

​

Derivative Assets

 

Derivatives subject to master netting agreements

​

$

140

​

$

42

​

$

—

​

$

98

​

Derivatives not subject to master netting agreements

​

 

—

​

​

​

​

​

​

​

 

—

​

Total

​

$

140

​

​

​

​

​

​

​

$

98

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2018

​

​

​

​

​

​

​

​

 

(Millions)

​

​

​

​

​

​

​

​

​

Derivatives subject to master netting agreements

​

$

146

​

$

38

​

$

—

​

$

108

​

Derivatives not subject to master netting agreements

​

 

—

​

​

​

​

​

​

​

 

—

​

Total

​

$

146

​

​

​

​

​

​

​

$

108

​

Offsetting Liabilities

Offsetting of Financial Liabilities under Master Netting Agreements with Derivative Counterparties

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gross Amounts not Offset in the

​

​

​

 

​

    

​

    

Consolidated Balance Sheet that are Subject

    

​

​

 

​

​

Gross Amount of

​

to Master Netting Agreements

​

​

​

 

​

​

Derivative Liabilities

​

Gross Amount of

​

​

​

​

 

​

​

Presented in the

​

Eligible Offsetting

​

​

​

​

 

June 30, 2019

​

Consolidated

​

Recognized

​

Cash Collateral

​

Net Amount of

 

(Millions)

​

Balance Sheet

​

Derivative Assets

​

Pledged

​

Derivative Liabilities

 

Derivatives subject to master netting agreements

​

$

85

​

$

42

​

$

—

​

$

43

​

Derivatives not subject to master netting agreements

​

 

—

​

​

​

​

​

​

​

 

—

​

Total

​

$

85

​

​

​

​

​

​

​

$

43

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2018

​

​

​

​

​

​

​

​

​

(Millions)

​

​

​

​

​

​

​

​

 

Derivatives subject to master netting agreements

​

$

53

​

$

38

​

$

—

​

$

15

​

Derivatives not subject to master netting agreements

​

 

—

​

​

​

​

​

​

​

 

—

​

Total

​

$

53

​

​

​

​

​

​

​

$

15

​