| 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.
|