XML 96 R47.htm IDEA: XBRL DOCUMENT v3.19.1
Derivative Financial Instruments and Hedging Activities (Tables)
 3 Months Ended
Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Income Effect of Derivative Instruments [Table Text Block]
The gains/(losses), by hedge designation, reported in income for the periods ended March 31 were as follows (in millions):
 
First Quarter
Cash flow hedges (a)
2018
 
2019
Reclassified from AOCI to Cost of sales
 
 
 
Foreign currency exchange contracts
$
17

 
$
54

Commodity contracts
—

 
(5
)
Fair value hedges
 
 
 
Interest rate contracts
 
 
 
Net interest settlements and accruals on hedging instruments
26

 
(20
)
Fair value changes on hedging instruments
(339
)
 
250

Fair value changes on hedged debt
329

 
(253
)
Derivatives not designated as hedging instruments
 
 
 
Foreign currency exchange contracts (b)
(116
)
 
(28
)
Cross-currency interest rate swap contracts
(58
)
 
(145
)
Interest rate contracts
(17
)
 
(27
)
Commodity contracts
(46
)
 
11

Total
$
(204
)
 
$
(163
)
__________
(a)
For the first quarter of 2018 and 2019, a $61 million gain and a $521 million loss, respectively, were reported in Other comprehensive income/(loss), net of tax related to foreign currency contracts; for first quarter 2019, an $11 million gain was reported in Other comprehensive income/(loss), net of tax related to commodity contracts.
(b)
For the first quarter of 2018 and 2019, a $104 million loss and a $22 million loss were reported in Cost of sales and a $12 million loss and a $6 million loss were reported in Other income/(loss), net, respectively.
Balance Sheet Effect of Derivative Instruments [Table Text Block]
The fair value of our derivative instruments and the associated notional amounts, presented gross, were as follows (in millions):
 
December 31, 2018
 
March 31, 2019
 
Notional
 
Fair Value of
Assets
 
Fair Value of
Liabilities
 
Notional
 
Fair Value of
Assets
 
Fair Value of
Liabilities
Cash flow hedges
 
 
 
 
 
 
 
 
 
 
 
Foreign currency exchange contracts
$
15,972

 
$
391

 
$
110

 
$
15,310

 
$
183

 
$
429

Commodity contracts
327

 
—

 
20

 
597

 
4

 
9

Fair value hedges
 

 
 

 
 

 
 
 
 
 
 
Interest rate contracts
22,989

 
158

 
208

 
23,894

 
217

 
143

Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
Foreign currency exchange contracts
20,695

 
202

 
99

 
22,171

 
221

 
129

Cross-currency interest rate swap contracts
5,235

 
232

 
157

 
6,331

 
146

 
216

Interest rate contracts
76,904

 
235

 
274

 
67,726

 
216

 
295

Commodity contracts
638

 
3

 
45

 
441

 
4

 
15

Total derivative financial instruments, gross (a) (b)
$
142,760

 
$
1,221

 
$
913

 
$
136,470

 
$
991

 
$
1,236

 
 
 
 
 
 
 
 
 
 
 
 
Current portion
 
 
$
681

 
$
601

 
 
 
$
500

 
$
868

Non-current portion
 
 
540

 
312

 
 
 
491

 
368

Total derivative financial instruments, gross
 
 
$
1,221

 
$
913

 
 
 
$
991

 
$
1,236


__________
(a)
At December 31, 2018 and March 31, 2019, we held collateral of $19 million and $26 million, and we posted collateral of $59 million and $63 million, respectively.
(b)
At December 31, 2018 and March 31, 2019, the fair value of assets and liabilities available for counterparty netting was $434 million and $529 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.