DERIVATIVES (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)

The following table summarizes the net investment hedge activity in accumulated other comprehensive loss (AOCL):

	Three months ended				Six months ended
	June 30,				June 30,
In millions	2023				2023
Type of Derivative	Gain (Loss)  Recognized in AOCL		Gain (Loss) Reclassified from AOCL into Earnings		Gain (Loss)  Recognized in AOCL		Gain (Loss) Reclassified from AOCL into Earnings
Foreign exchange forwards	$	(13)	$	—	$	(28)	$	—

The following table summarizes the interest rate lock activity in AOCL:

	Three months ended								Six months ended
	June 30,								June 30,
In millions	2023				2022				2023				2022
Type of Swap	Gain (Loss)  Recognized in AOCL		Gain (Loss) Reclassified from AOCL into Interest Expense		Gain (Loss)  Recognized in AOCL		Gain (Loss) Reclassified from AOCL into Interest Expense		Gain (Loss)  Recognized in AOCL		Gain (Loss) Reclassified from AOCL into Interest Expense		Gain (Loss)  Recognized in AOCL		Gain (Loss) Reclassified from AOCL into Interest Expense
Interest rate locks	$	10	$	—	$	43	$	—	$	1	$	—	$	82	$	—

Schedule of Interest Rate Derivatives

The following table summarizes the gains and losses:

	Three months ended								Six months ended
	June 30,								June 30,
In millions	2023				2022				2023				2022
Type of Swap	Gain (Loss)  on Swaps		Gain (Loss) on Borrowings		Gain (Loss)  on Swaps		Gain (Loss) on Borrowings		Gain (Loss)  on Swaps		Gain (Loss) on Borrowings		Gain (Loss)  on Swaps		Gain (Loss) on Borrowings
Interest rate swaps (1)	$	(20)	$	16	$	(39)	$	34	$	7	$	(6)	$	(111)	$	114
(1) The difference between the gain (loss) on swaps and borrowings represents hedge ineffectiveness.

Derivative Instruments, Gain (Loss)

The following table summarizes the effect on our Condensed Consolidated Statements of Net Income for derivative instruments classified as cash flow hedges. The table does not include amounts related to ineffectiveness as it was not material for the periods presented.

	Three months ended				Six months ended
	June 30,				June 30,
In millions	2023		2022		2023		2022
Gain (loss) reclassified from AOCL into income - Net sales (1)	$	4	$	(1)	$	5	$	2
Gain (loss) reclassified from AOCL into income - Cost of sales (1)(2)	1		1		1		(1)
(1) Includes foreign currency forward contracts.
(2) Includes commodity swap contracts.

Derivatives Not Designated as Hedging Instruments

The following table summarizes the effect on our Condensed Consolidated Statements of Net Income for derivative instruments not designated as hedging instruments:

	Three months ended				Six months ended
	June 30,				June 30,
In millions	2023		2022		2023		2022
(Loss) gain recognized in income - Cost of sales (1)	$	(1)	$	3	$	(3)	$	2
Loss recognized in income - Other income (expense), net (1)	(44)		(31)		(17)		(23)
(1) Includes foreign currency forward contracts.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table summarizes the location and fair value of derivative instruments on our Condensed Consolidated Balance Sheets:

	Derivatives Designated as Hedging Instruments				Derivatives Not Designated as Hedging Instruments
In millions	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Notional amount	$	2,908	$	3,051	$	3,691	$	2,900
Derivative assets
Prepaid expenses and other current assets	$	17	$	18	$	20	$	27
Other assets	47		80		—		—
Total derivative assets (1)	$	64	$	98	$	20	$	27
Derivative liabilities
Other accrued expenses	$	21	$	19	$	17	$	3
Other liabilities	138		151		—		—
Total derivative liabilities (1)	$	159	$	170	$	17	$	3
(1) Estimates of the fair value of all derivative assets and liabilities above are derived from Level 2 inputs, which are estimated using actively quoted prices for similar instruments from brokers and observable inputs where available, including market transactions and third-party pricing services, or net asset values provided to investors. We do not currently have any Level 3 input measures and there were no transfers into or out of Level 2 or 3 during the six months ended June 30, 2023, or the year ended December 31, 2022.