Hedging transactions and derivative financial instruments Hedging transactions and derivative financial instruments (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments, Gain (Loss)

The following table summarizes the notional values as of December 31, 2020 and 2019 and pretax impact of changes in the fair values of instruments designated as net investment hedges and cash flow hedges in accumulated other comprehensive income (“OCI”) for the year then ended ($ in millions):

	Original Notional Amount		Notional Amount Outstanding		Gain (Loss) Recognized in OCI
Year ended December 31, 2020:
Net investment hedges:
Foreign currency contracts	$	2,875	$	2,000	$	(104)
Foreign currency denominated debt	4,573		4,573		(418)
Cash flow hedges:
Foreign currency contracts	4,000		4,000		(432)
Total	$	11,448	$	10,573	$	(954)
Year ended December 31, 2019:
Net investment hedges:
Foreign currency contracts	$	1,875	$	1,000	$	24
Foreign currency denominated debt	6,276		6,276		130
Cash flow hedges:
Foreign currency contracts	4,000		4,000		(112)
Interest rate swaps	850		—		(37)
Total	$	13,001	$	11,276	$	5

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

The Company’s derivative instruments, as well as its nonderivative debt instruments designated and qualifying as net investment hedges, were classified as of December 31 in the Company’s Consolidated Balance Sheets as follows ($ in millions):

	2020		2019
Derivative assets:
Prepaid expenses and other current assets	$	—	$	26
Derivative liabilities:
Accrued expenses and other liabilities	622		112
Nonderivative hedging instruments:
Long-term debt	4,573		6,276