Basis of Presentation and Significant Accounting Policies (Tables)

9 Months Ended

Sep. 29, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Impact of Adoption of Lease Accounting Standard Updates on Consolidated Balance Sheet

Adopting the standard related to leases impacted our prior period condensed consolidated balance sheet as follows:
(MILLIONS OF DOLLARS)	As Previously Reported Balance at December 31, 2018		Effect of Change Higher/(Lower)			Balance at January 1, 2019
Other current assets	$	2,461	$	(1	)	$	2,460
Noncurrent deferred tax assets and other noncurrent tax assets	1,924		(11		)	1,913
Other noncurrent assets	2,799		1,351			4,149
Other current liabilities	10,753		258			11,011
Other noncurrent liabilities	5,850		1,060			6,910
Retained earnings	89,554		20			89,574

Schedule of Balance Sheet Classification of Accruals

The following table provides information about the balance sheet classification of these accruals:
(MILLIONS OF DOLLARS)	September 29, 2019		December 31, 2018
Reserve against Trade accounts receivable, less allowance for doubtful accounts	$	1,203	$	1,288
Other current liabilities:
Accrued rebates	3,275		3,208
Other accruals	617		531
Other noncurrent liabilities	463		399
Total accrued rebates and other accruals	$	5,557	$	5,426

ROU Assets and Liabilities Presented in Condensed Consolidated Balance Sheets

For operating leases, the ROU assets and liabilities are presented in our condensed consolidated balance sheet as follows:
		Balance at
(MILLIONS OF DOLLARS)	Balance Sheet Classification	September 29, 2019
ROU assets	Other noncurrent assets	$	1,306
Lease liabilities (short-term)	Other current liabilities	281
Lease liabilities (long-term)	Other noncurrent liabilities	1,037

Total Lease Costs and Other Supplemental Information

Our total lease costs are as follows:
	Three Months Ended			Nine Months Ended
(MILLIONS OF DOLLARS)	September 29, 2019			September 29, 2019
Operating lease cost	$	111		$	310
Variable lease cost	74			192
Sublease income	(10		)	(31		)
Total lease cost	$	174		$	471

Other supplemental information includes the following:
	Weighted-Average Remaining Contractual Lease Term (Years) as of	Weighted-Average Discount Rate as of
(MILLIONS OF DOLLARS)	September 29, 2019	September 29, 2019		Nine Months Ended September 29, 2019
Operating leases	6.8	3.6	%
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases				$	244
(Gains)/losses on sale and leaseback transactions, net				(32		)
ROU assets obtained in exchange for new operating lease liabilities				$	250

Schedule of Future Minimum Rental Payments for Operating Leases

The table below reconciles the undiscounted cash flows for the first five years and total of the remaining years to the operating lease liabilities recorded in the condensed consolidated balance sheet as of September 29, 2019:
(MILLIONS OF DOLLARS)
Period	Operating Lease Liabilities
Next one year(a)	$	322
1-2 years	279
2-3 years	222
3-4 years	176
4-5 years	110
Thereafter	406
Total undiscounted lease payments	1,516
Less: Imputed interest	197
Present Value of Minimum Lease Payments	1,319
Less: Current portion	281
Noncurrent portion	$	1,037

^(a) 

Reflects lease payments due within 12 months subsequent to the balance sheet date.

Schedule of Future Minimum Rental Payments for Operating Leases

As of December 31, 2018, the future minimum rental commitments under non-cancelable operating leases follow:
(MILLIONS OF DOLLARS)	2019		2020		2021		2022		2023		After 2023
Lease commitments	$	300	$	252	$	210	$	267	$	248	$	2,040