Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of price risk derivatives

At September 30, 2020 and December 31, 2019, the following commodity derivative contracts were outstanding:

	Commodity derivative contracts
Commodity	Volume hedged September 30, 2020	Volume hedged December 31, 2019	Units of measure	Duration
Copper	47	203	Metric Tons	Dec - 20

Schedule of notional amounts of outstanding derivative positions

At September 30, 2020 and December 31, 2019, the following foreign currency derivative contracts were outstanding:

Foreign currency derivatives (in millions)
Functional currency	Traded currency	Notional in traded currency September 30, 2020	Notional in traded currency December 31, 2019	Ending Duration
Brazilian real	Euro	1	1	Jan - 21
Brazilian real	US dollar	3	—	Jan - 21
British pound	Euro	11	9	Mar - 21
British pound	US dollar	—	4	Mar - 20
Chinese renminbi	US dollar	51	2	Jul - 21
Euro	British pound	1	—	Jan - 21
Euro	Chinese renminbi	1	—	Oct - 20
Euro	Hungarian forint	744	—	Jan - 21
Euro	Japanese yen	85	383	Dec - 20
Euro	Polish zloty	125	—	Dec - 20
Euro	US dollar	3	18	Dec - 20
Indian rupee	Japanese yen	32	—	Oct - 20
Indian rupee	US dollar	2	—	Oct - 20
Japanese yen	Korean won	1,255	—	Dec - 20
Japanese yen	US dollar	1	—	Dec - 20
Korean won	Euro	3	13	Dec - 20
Korean won	Japanese yen	169	409	Dec - 20
Korean won	US dollar	15	4	Dec - 20
Swedish krona	Euro	—	3	Jan - 20
Thai baht	US dollar	1	—	Dec - 20
US dollar	Euro	79	14	Dec - 20
US dollar	Japanese yen	500	—	Oct - 20
US dollar	Korean won	15,000	—	Apr - 21
US dollar	Mexican peso	188	—	Mar - 21

Schedule of foreign exchange contracts, statement of financial position

At September 30, 2020 and December 31, 2019, the following cross-currency swap contracts were outstanding:

	Cross-Currency Swaps
(in millions)	September 30, 2020		December 31, 2019		Duration
US dollar to Euro:
Fixed receiving notional	$	1,100	$	—	Jul - 27
Fixed paying notional	€	976	€	—	Jul - 27
US dollar to Euro:
Fixed receiving notional	$	500	$	500	Mar - 25
Fixed paying notional	€	450	€	450	Mar - 25
US dollar to Japanese yen:
Fixed receiving notional	$	100	$	100	Feb - 23
Fixed paying notional	¥	10,978	¥	10,978	Feb - 23

Schedule of derivatives instruments in statements of financial position

At September 30, 2020 and December 31, 2019, the following amounts were recorded in the Condensed Consolidated Balance Sheets as being payable to or receivable from counterparties under ASC Topic 815:

(in millions)	Assets					Liabilities
Derivatives designated as hedging instruments Under 815:	Location	September 30, 2020		December 31, 2019		Location	September 30, 2020		December 31, 2019
Foreign currency	Prepayments and other current assets	$	1	$	—	Accounts payable and accrued expenses	$	2	$	1
Net investment hedges	Other non-current assets	$	2	$	3	Other non-current liabilities	$	79	$	8
Derivatives not designated as hedging instruments
Foreign currency	Prepayments and other current assets	$	4	$	—	Accounts payable and accrued expenses	$	3	$	—

Schedule of deferred losses reported in accumulated other comprehensive income loss

The table below shows deferred gains (losses) reported in AOCI as well as the amount expected to be reclassified to income in one year or less. The amount expected to be reclassified to income in one year or less assumes no change in the current relationship of the hedged item at September 30, 2020 market rates.

(in millions)	Deferred gain (loss) in AOCI at				Gain (loss) expected to be reclassified to income in one year or less
Contract Type	September 30, 2020		December 31, 2019
Foreign currency	$	(1)	$	—	$	(1)
Net investment hedges:
Foreign currency	6		5		—
Cross-currency swaps	(55)		16		—
Foreign currency-denominated debt	(43)		(17)		—
Total	$	(93)	$	4	$	(1)

Gains and (losses) on derivative instruments designated as net investment hedges were recognized in other comprehensive income (loss) during the periods presented below.

(in millions)	Three Months Ended September 30,				Nine Months Ended September 30,
Net investment hedges	2020		2019		2020		2019
Foreign currency	$	—	$	2	$	1	$	2
Cross-currency swaps	$	(89)	$	11	$	(71)	$	16
Foreign currency-denominated debt	$	(24)	$	23	$	(26)	$	28

Schedule of derivative instruments

Derivative instruments designated as cash flow hedge instruments as defined by ASC Topic 815 held during the period resulted in the following gains and losses recorded in income:

	Three Months Ended September 30, 2020
(in millions)	Net sales		Cost of sales		Selling, general and administrative expenses		Other comprehensive income (loss)
Total amounts of earnings and other comprehensive income(loss) line items in which the effects of cash flow hedges are recorded	$	2,534	$	2,017	$	204	$	57
Gain (loss) on cash flow hedging relationships:
Foreign currency
Gain (loss) recognized in other comprehensive income (loss)							$	1
Gain (loss) reclassified from AOCI to income	$	—	$	—	$	—

	Nine Months Ended September 30, 2020
(in millions)	Net sales		Cost of sales		Selling, general and administrative expenses		Other comprehensive income(loss)
Total amounts of earnings and other comprehensive income(loss) line items in which the effects of cash flow hedges are recorded	$	6,239	$	5,101	$	601	$	(3)
Gain (loss) on cash flow hedging relationships:
Foreign currency
Gain (loss) recognized in other comprehensive income (loss)							$	(1)
Gain (loss) reclassified from AOCI to income	$	—	$	—	$	(1)

	Three Months Ended September 30, 2019
(in millions)	Net sales		Cost of sales		Selling, general and administrative expenses		Other comprehensive income (loss)
Total amounts of earnings and other comprehensive income(loss) line items in which the effects of cash flow hedges are recorded	$	2,492	$	1,968	$	230	$	(109)
Gain (loss) on cash flow hedging relationships:
Foreign currency
Gain (loss) recognized in other comprehensive income (loss)							$	—
Gain (loss) reclassified from AOCI to income	$	(2)	$	—	$	1

	Nine Months Ended September 30, 2019
(in millions)	Net sales		Cost of sales		Selling, general and administrative expenses		Other comprehensive income(loss)
Total amounts of earnings and other comprehensive income(loss) line items in which the effects of cash flow hedges are recorded	$	7,609	$	6,053	$	668	$	(105)
Gain (loss) on cash flow hedging relationships:
Foreign currency
Gain (loss) recognized in other comprehensive income (loss)							$	(1)
Gain (loss) reclassified from AOCI to income	$	(4)	$	1	$	2

Schedule of derivative instruments, gain (loss)

Derivatives designated as net investment hedge instruments as defined by ASC Topic 815 held during the period resulted in the following gains recorded in Interest expense and finance charges on components excluded from the assessment of effectiveness:

(in millions)	Three Months Ended September 30,				Nine Months Ended September 30,
Net investment hedges	2020		2019		2020		2019
Cross-currency swaps	$	6	$	3	$	13	$	8

Schedule of derivatives not designated as hedging instruments

Derivatives not designated as hedging instruments are used to hedge remeasurement exposures of monetary assets and liabilities denominated in currencies other than the operating units' functional currency. These derivatives resulted in the following gains and (losses) recorded in income:

(in millions)		Three Months Ended September 30,				Nine Months Ended September 30,
Contract Type	Location	2020		2019		2020		2019
Foreign Currency	Selling, general and administrative expenses	$	(1)	$	—	$	2	$	(3)