Financial Instruments, Derivatives and Fair Value Measures (Tables)

12 Months Ended

Dec. 31, 2021

Financial Instruments, Derivatives and Fair Value Measures

Summary of the amounts and location of certain derivative financial instruments

	Fair Value — Assets					Fair Value — Liabilities
(in millions)	2021		2020		Balance Sheet Caption	2021		2020		Balance Sheet Caption
Interest rate swaps designated as fair value hedges	$	87	$	210	Deferred income taxes and other assets	$	—	$	—	Post-employment obligations and other long-term liabilities
Foreign currency forward exchange contracts:
Hedging instruments		222		30	Other prepaid expenses and receivables		65		433	Other accrued liabilities
Others not designated as hedges		70		60	Other prepaid expenses and receivables		32		65	Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary		—		—	n/a		521		577	Long-term debt
	$	379	$	300		$	618	$	1,075

Schedule of derivatives gain (loss) in OCI and earnings

	Gain (loss) Recognized in						Income (expense) and
	Other Comprehensive						Gain (loss) Reclassified
	Income (loss)						into Income
(in millions)	2021		2020		2019		2021		2020		2019		Income Statement Caption
Foreign currency forward exchange contracts designated as cash flow hedges	$	164	$	(207)	$	9	$	(252)	$	102	$	79	Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary		56		(31)		4		n/a		n/a		n/a	n/a
Interest rate swaps designated as fair value hedges		n/a		n/a		n/a		(123)		162		148	Interest expense

Schedule of carrying values and fair values of certain financial instruments

	2021				2020
	Carrying		Fair		Carrying		Fair
(in millions)	Value		Value		Value		Value
Long-term Investment Securities:
Equity securities	$	748	$	748	$	776	$	776
Other		68		68		45		45
Total long-term debt		(18,050)		(21,152)		(18,534)		(22,809)
Foreign Currency Forward Exchange Contracts:
Receivable position		292		292		90		90
(Payable) position		(97)		(97)		(498)		(498)
Interest Rate Hedge Contracts:
Receivable position		87		87		210		210
(Payable) position		—		—		—		—

Schedule of assets and liabilities measured at fair value on a recurring basis

			Basis of Fair Value Measurement
			Quoted		Significant
			Prices in		Other		Significant
	Outstanding		Active		Observable		Unobservable
(in millions)	Balances		Markets		Inputs		Inputs
December 31, 2021:
Equity securities	$	402	$	402	$	—	$	—
Interest rate swap derivative financial instruments		87		—		87		—
Foreign currency forward exchange contracts		292		—		292		—
Total Assets	$	781	$	402	$	379	$	—
Fair value of hedged long-term debt	$	2,926	$	—	$	2,926	$	—
Foreign currency forward exchange contracts		97		—		97		—
Contingent consideration related to business combinations		130		—		—		130
Total Liabilities	$	3,153	$	—	$	3,023	$	130
December 31, 2020:
Equity securities	$	386	$	386	$	—	$	—
Interest rate swap derivative financial instruments		210		—		210		—
Foreign currency forward exchange contracts		90		—		90		—
Total Assets	$	686	$	386	$	300	$	—
Fair value of hedged long-term debt	$	3,049	$	—	$	3,049	$	—
Foreign currency forward exchange contracts		498		—		498		—
Contingent consideration related to business combinations		68		—		—		68
Total Liabilities	$	3,615	$	—	$	3,547	$	68