FINANCIAL INSTRUMENTS, DERIVATIVES AND HEDGING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Activity Relating to Securitization Arrangement

The following is a summary of the activity relating to the arrangement.

as of and for the years ended December 31 (in millions)	2023		2022		2021
Sold receivables at beginning of year	$	71	$	81	$	96
Proceeds from sales of receivables	274		291		339
Cash collections (remitted to the owners of the receivables)	(275)		(293)		(346)
Effect of foreign exchange rate changes	(4)		(8)		(8)
Sold receivables at end of year	$	66	$	71	$	81

Summary of Gains and Losses on Derivative Instruments

The following tables summarize the gains and losses on our hedging instruments and the classification of those gains and losses within our consolidated financial statements for the years ended December 31, 2023, 2022 and

2021.

(in millions)	Gain (loss) recognized in OCI						Location of gain (loss) in income statement	Gain (loss) reclassified from AOCI into income
	2023		2022		2021			2023		2022		2021
Cash flow hedges
Interest rate contracts	$	—	$	—	$	—	Interest expense, net	$	(6)	$	(6)	$	(6)
Foreign exchange contracts	16		28		5		Cost of sales	16		26		(23)
Fair value hedges
Foreign exchange contracts	(4)		—		—		Other (income) expense, net	(3)		—		—
Net investment hedges	(58)		141		200		Other (income) expense, net	—		—		—
Total	$	(46)	$	169	$	205		$	7	$	20	$	(29)

	Location of gain (loss) in income statement	Gain (loss) recognized in income
(in millions)		2023		2022		2021
Fair value hedges
Foreign exchange contracts	Other (income) expense, net	$	38	$	—	$	—
Undesignated derivative instruments
Foreign exchange contracts	Other (income) expense, net	2		(30)		(36)
Total		$	40	$	(30)	$	(36)

Net of Tax Activity in Accumulated Other Comprehensive Income Related to Cash Flow Hedges

The following table summarizes net-of-tax activity in AOCI, a component of stockholders’ equity, related to our cash flow hedges.

as of and for the year ended December 31 (in millions)	2023		2022		2021
Accumulated other comprehensive income (loss) balance at beginning of year	$	(119)	$	(126)	$	(153)
(Loss) gain in fair value of derivatives during the year	5		22		4
Amount reclassified to earnings during the year	(6)		(15)		23
Accumulated other comprehensive income (loss) balance at end of year	$	(120)	$	(119)	$	(126)

Classification and Fair Value Amounts of Derivative Instruments

The following table summarizes the classification and fair values of derivative instruments reported in the consolidated balance sheet as of December 31, 2023.

	Derivatives in asset positions			Derivatives in liability positions
(in millions)	Balance sheet location	Fair value		Balance sheet location	Fair value
Derivative instruments designated as hedges
Foreign exchange contracts	Prepaid expenses and other current assets	$	47	Accrued expenses and other current liabilities	$	—
Undesignated derivative instruments
Foreign exchange contracts	Prepaid expenses and other current assets	4		Accrued expenses and other current liabilities	5
Total derivative instruments		$	51		$	5

The following table summarizes the classification and fair values of derivative instruments reported in the consolidated balance sheet as of December 31, 2022.

	Derivatives in asset positions			Derivatives in liability positions
(in millions)	Balance sheet location	Fair value		Balance sheet location	Fair value
Derivative instruments designated as hedges
Foreign exchange contracts	Prepaid expenses and other current assets	$	8	Accrued expenses and other current liabilities	$	5
Undesignated derivative instruments
Foreign exchange contracts	Prepaid expenses and other current assets	6		Accrued expenses and other current liabilities	7
Total derivative instruments		$	14		$	12

Derivative Positions Presented on Net Basis

The following table provides information on our derivative positions as if they were presented on a net basis, allowing for the right of offset by counterparty.

	December 31, 2023				December 31, 2022
(in millions)	Asset		Liability		Asset		Liability
Gross amounts recognized in the consolidated balance sheets	$	51	$	5	$	14	$	12
Gross amount subject to offset in master netting arrangements not offset in the consolidated balance sheets	(5)		(5)		(4)		(4)
Total	$	46	$	—	$	10	$	8

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following table presents the amounts recorded on the consolidated balance sheets related to fair value hedges:

	Carrying amount of hedged items				Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged items (a)
(in millions)	Balance as of December 31, 2023		Balance as of December 31, 2022		Balance as of December 31, 2023		Balance as of December 31, 2022
Long-term debt	$	100	$	101	$	3	$	4

(a) These fair value hedges were terminated in 2018 and earlier periods.