XML 64 R52.htm IDEA: XBRL DOCUMENT v3.20.2
Derivative Financial Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2020
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 June 30 were as follows (in millions):
 
Second Quarter
 
First Half
Cash flow hedges (a)
2019
 
2020
 
2019
 
2020
Reclassified from AOCI to Cost of sales
 
 
 
 
 
 
 
Foreign currency exchange contracts
$
44

 
$
(4
)
 
$
98

 
$
(74
)
Commodity contracts
(6
)
 
(14
)
 
(11
)
 
(28
)
Fair value hedges
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
Net interest settlements and accruals on hedging instruments
(12
)
 
68

 
(32
)
 
96

Fair value changes on hedging instruments
474

 
112

 
724

 
1,222

Fair value changes on hedged debt
(463
)
 
(98
)
 
(716
)
 
(1,191
)
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
Foreign currency exchange contracts (b)
5

 
(274
)
 
(23
)
 
312

Cross-currency interest rate swap contracts
141

 
154

 
(4
)
 
3

Interest rate contracts
(3
)
 
(12
)
 
(30
)
 
(86
)
Commodity contracts
(12
)
 
12

 
(1
)
 
(31
)
Total
$
168

 
$
(56
)
 
$
5

 
$
223

__________
(a)
For the second quarter and first half of 2019, a $205 million gain and a $316 million loss, respectively, were reported in Other comprehensive income/(loss), net of tax related to foreign currency exchange contracts. For the second quarter and first half of 2020, an $81 million loss and an $816 million gain, respectively, were reported in Other comprehensive income/(loss), net of tax related to foreign currency exchange contracts. For the second quarter and first half of 2019, a $37 million loss and a $26 million loss, respectively, were reported in Other comprehensive income/(loss), net of tax related to commodity contracts. For the second quarter and first half of 2020, a $17 million gain and an $84 million loss, respectively, were reported in Other comprehensive income/(loss), net of tax related to commodity contracts.
(b)
For the second quarter and first half of 2019, a $35 million loss and a $57 million loss were reported in Cost of sales, respectively, and a $40 million gain and a $34 million gain 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 were as follows (in millions):
 
December 31, 2019
 
June 30, 2020
 
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
$
15,349

 
$
47

 
$
493

 
$
12,966

 
$
371

 
$
55

Commodity contracts
673

 
5

 
29

 
617

 
2

 
69

Fair value hedges
 

 
 

 
 

 
 
 
 
 
 
Interest rate contracts
26,577

 
702

 
19

 
24,434

 
1,682

 
—

Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Foreign currency exchange contracts
19,350

 
58

 
270

 
20,075

 
225

 
238

Cross-currency interest rate swap contracts
5,849

 
134

 
67

 
5,611

 
163

 
53

Interest rate contracts
68,914

 
275

 
191

 
71,075

 
752

 
573

Commodity contracts
467

 
9

 
9

 
450

 
12

 
29

Total derivative financial instruments, gross (a) (b)
$
137,179

 
$
1,230

 
$
1,078

 
$
135,228

 
$
3,207

 
$
1,017

 
 
 
 
 
 
 
 
 
 
 
 
Current portion
 
 
$
390

 
$
772

 
 
 
$
1,239

 
$
683

Non-current portion
 
 
840

 
306

 
 
 
1,968

 
334

Total derivative financial instruments, gross
 
 
$
1,230

 
$
1,078

 
 
 
$
3,207

 
$
1,017


__________
(a)
At December 31, 2019 and June 30, 2020, we held collateral of $18 million and $20 million, and we posted collateral of $78 million and $91 million, respectively.
(b)
At December 31, 2019 and June 30, 2020, the fair value of assets and liabilities available for counterparty netting was $269 million and $600 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.