FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Foreign Exchange Derivative Contracts Outstanding

At September 30, 2023 and December 31, 2022, the following foreign currency derivative contracts were outstanding and mature through the ending duration noted below:

Foreign currency derivatives (in millions)*
Functional Currency	Traded Currency	Notional in traded currency September 30, 2023	Notional in traded currency December 31, 2022	Ending Duration
British Pound	Euro	47	10	Dec - 24
Chinese Renminbi	US Dollar	225	276	Dec - 24
Euro	Hungarian Forint	7,033	—	Dec - 24
Euro	Korean Won	20,225	9,138	Mar - 24
Euro	Polish Zloty	456	440	Dec - 24
Euro	US Dollar	136	120	Dec - 24
US Dollar	Chinese Renminbi	582	1,402	Dec - 23
US Dollar	Euro	42	45	Oct - 23
US Dollar	Korean Won	67,200	51,786	Nov - 24
US Dollar	Mexican Peso	2,295	2,474	Dec - 24
US Dollar	Thailand Baht	1,550	—	Jun - 24
*Table above excludes non-significant traded currency pairings with total notional amounts less than $10 million U.S. dollar equivalent as of September 30, 2023 and December 31, 2022.

Schedule of Foreign Exchange Contracts, Statement of Financial Position

At September 30, 2023 and December 31, 2022, the following cross-currency swap contracts were outstanding:

	Cross-currency swaps
(in millions)	September 30, 2023		December 31, 2022		Ending duration
US dollar to Euro:
Fixed receiving notional	$	1,100	$	1,100	Jul - 27
Fixed paying notional	€	976	€	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 - 29
Fixed paying notional	¥	12,724	¥	12,724	Feb - 29

Schedule of Derivatives Instruments in Statements of Financial Position

At September 30, 2023 and December 31, 2022, the following amounts were recorded in the Condensed Consolidated Balance Sheets as being payable to or receivable from counterparties under ASC Topic 815, “Derivatives and Hedging”:

(in millions)	Assets					Liabilities
Derivatives designated as hedging instruments Under 815:	Location	September 30, 2023		December 31, 2022		Location	September 30, 2023		December 31, 2022
Foreign currency	Prepayments and other current assets	$	31	$	9	Other current liabilities	$	1	$	8
Foreign currency	Other non-current assets	$	5	$	—	Other non-current liabilities	$	—	$	1
Net investment hedges	Other non-current assets	$	78	$	68	Other non-current liabilities	$	—	$	1
Derivatives not designated as hedging instruments:
Foreign currency	Prepayments and other current assets	$	3	$	3	Other current liabilities	$	1	$	—

Schedule of Cash Flow Hedges Included 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 for designated net investment hedges. 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, 2023 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, 2023		December 31, 2022
Net investment hedges:
Foreign currency	$	—	$	(4)	$	—
Cross-currency swaps	78		67		—
Foreign currency-denominated debt	146		133		—
Total	$	224	$	196	$	—

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	2023		2022		2023		2022
Foreign currency	$	—	$	3	$	—	$	6
Cross-currency swaps	$	40	$	94	$	11	$	229
Foreign currency-denominated debt	$	34	$	67	$	13	$	156

Schedule of Derivative Instruments

Derivative instruments designated as hedging 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, 2023
(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	$	3,622	$	2,970	$	330	$	(17)
Gain (loss) on cash flow hedging relationships:
Foreign currency:
Gain (loss) recognized in other comprehensive income							$	(11)
	Nine Months Ended September 30, 2023
(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	$	10,676	$	8,767	$	963	$	(39)
Gain (loss) on cash flow hedging relationships:
Foreign currency:
Gain (loss) recognized in other comprehensive income							$	27

	Three Months Ended September 30, 2022
(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	$	3,226	$	2,619	$	325	$	(262)
Gain (loss) on cash flow hedging relationships:
Foreign currency:
Gain (loss) recognized in other comprehensive income							$	8
	Nine Months Ended September 30, 2022
(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	$	9,318	$	7,588	$	951	$	(527)
Gain (loss) on cash flow hedging relationships:
Foreign currency:
Gain (loss) recognized in other comprehensive income							$	12
Gain (loss) reclassified from AOCI to income	$	—	$	(1)	$	—

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 on components excluded from the assessment of effectiveness:

(in millions)	Three Months Ended September 30,				Nine Months Ended September 30,
Net investment hedges	2023		2022		2023		2022
Cross-currency swaps	$	6	$	7	$	19	$	20

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 (losses) recorded in income:

(in millions)		Three Months Ended September 30,				Nine Months Ended September 30,
Contract Type	Location	2023		2022		2023		2022
Foreign Currency	Selling, general and administrative expenses	$	16	$	13	$	8	$	22