XML 165 R57.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Estimated Fair Value of Assets and Liabilities
The following table provides information about assets and liabilities not carried at fair value and excludes finance leases, equity securities without readily determinable fair value and non-financial assets and liabilities. Substantially all of these assets are considered to be Level 3 and the vast majority of our liabilities’ fair value are considered Level 2.
 
December 31, 2019
 
December 31, 2018
(In millions)
Carrying
amount
(net)

Estimated
fair value

 
Carrying
amount
(net)

Estimated
fair value

 


 


Assets


 


Loans and other receivables
$
4,113

$
4,208

 
$
8,811

$
8,829

Liabilities


 


Borrowings (Note 11)
$
90,882

$
97,754

 
$
103,599

$
100,492

Investment contracts (Note 12)
2,191

2,588

 
2,388

2,630
Fair Value of Derivative Assets
The table below provides additional information about how derivatives are reflected in our financial statements. Derivative assets and liabilities are recorded at fair value exclusive of interest earned or owed on interest rate derivatives, which is presented separately in our consolidated Statement of Financial Position. Cash collateral and securities held as collateral represent assets that have been provided by our derivative counterparties as security for amounts they owe us (derivatives that are in an asset position).
 
December 31, 2019
 
December 31, 2018
(In millions)
Gross Notional

All other assets

All other liabilities

 
Gross Notional

All other assets

All other liabilities

 
 
 
 
 
 
 
 
Interest rate contracts
$
23,918

$
1,636

$
11

 
$
22,904

$
1,335

$
23

Currency exchange contracts
7,044

99

46

 
7,854

175

114

Derivatives accounted for as hedges
$
30,961

$
1,734

$
57

 
$
30,758

$
1,511

$
138

 
 
 
 
 
 
 
 
Interest rate contracts
$
3,185

$
18

$
12

 
$
6,198

$
28

$
2

Currency exchange contracts
62,165

697

744

 
77,544

653

1,472

Other contracts
1,706

123

40

 
2,604

13

209

Derivatives not accounted for as hedges
$
67,056

$
838

$
796

 
$
86,346

$
695

$
1,682

 
 
 
 
 
 
 
 
Gross derivatives
$
98,018

$
2,572

$
853

 
$
117,104

$
2,205

$
1,820

 
 
 
 
 
 
 
 
Netting and credit adjustments
 
$
(546
)
$
(546
)
 
 
$
(959
)
$
(967
)
Cash collateral adjustments
 
(1,286
)
(105
)
 
 
(1,042
)
(267
)
Net derivatives recognized in Statement of Financial Position
 
$
740

$
202

 
 
$
205

$
586

 
 
 
 
 
 
 
 
Net accrued interest
 
$
182

$
1

 
 
$
205

$
1

Securities held as collateral
 
(469
)
—

 
 
(235
)
—

Net amount
 
$
452

$
203

 
 
$
174

$
587
Fair Value of Derivative Liabilities
The table below provides additional information about how derivatives are reflected in our financial statements. Derivative assets and liabilities are recorded at fair value exclusive of interest earned or owed on interest rate derivatives, which is presented separately in our consolidated Statement of Financial Position. Cash collateral and securities held as collateral represent assets that have been provided by our derivative counterparties as security for amounts they owe us (derivatives that are in an asset position).
 
December 31, 2019
 
December 31, 2018
(In millions)
Gross Notional

All other assets

All other liabilities

 
Gross Notional

All other assets

All other liabilities

 
 
 
 
 
 
 
 
Interest rate contracts
$
23,918

$
1,636

$
11

 
$
22,904

$
1,335

$
23

Currency exchange contracts
7,044

99

46

 
7,854

175

114

Derivatives accounted for as hedges
$
30,961

$
1,734

$
57

 
$
30,758

$
1,511

$
138

 
 
 
 
 
 
 
 
Interest rate contracts
$
3,185

$
18

$
12

 
$
6,198

$
28

$
2

Currency exchange contracts
62,165

697

744

 
77,544

653

1,472

Other contracts
1,706

123

40

 
2,604

13

209

Derivatives not accounted for as hedges
$
67,056

$
838

$
796

 
$
86,346

$
695

$
1,682

 
 
 
 
 
 
 
 
Gross derivatives
$
98,018

$
2,572

$
853

 
$
117,104

$
2,205

$
1,820

 
 
 
 
 
 
 
 
Netting and credit adjustments
 
$
(546
)
$
(546
)
 
 
$
(959
)
$
(967
)
Cash collateral adjustments
 
(1,286
)
(105
)
 
 
(1,042
)
(267
)
Net derivatives recognized in Statement of Financial Position
 
$
740

$
202

 
 
$
205

$
586

 
 
 
 
 
 
 
 
Net accrued interest
 
$
182

$
1

 
 
$
205

$
1

Securities held as collateral
 
(469
)
—

 
 
(235
)
—

Net amount
 
$
452

$
203

 
 
$
174

$
587
Effects of Derivatives on Earnings
The table below presents the effect of our derivative financial instruments in the consolidated Statement of Earnings (Loss):
 
2019
 
2018
(In millions)
Revenues
Cost of sales
Interest Expense
SG&A
Other Income
 
Revenues
Cost of sales
Interest Expense
SG&A
Other Income
 
 
 
 
 
 
 
 
 
 
 
 
Total amounts presented in
  the consolidated Statement
  of Earnings (Loss)
$
95,214

$
70,029

$
4,227

$
13,949

$
2,222

 
$
97,012

$
72,818

$
4,766

$
14,643

$
2,321

 
 
 
 
 
 
 
 
 
 
 
 
Total effect of cash flow
  hedges
$
5

$
(24
)
$
(37
)
$
(3
)
$
—

 
$
(53
)
$
(10
)
$
(39
)
$
—

$
—

 
 
 
 
 
 
 
 
 
 
 
 
Hedged items
 
 
$
(1,276
)
 
 
 
 
 
$
617

 
 
Derivatives designated as
  hedging instruments
 
 
1,229

 
 
 
 
 
(724
)
 
 
Total effect of fair value
  hedges
 
 
$
(48
)
 
 
 
 
 
$
(107
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
$
(24
)
$
—

$
(50
)
$
—

$
—

 
$
(72
)
$
—

$
(4
)
$
—

$
—

Currency exchange contracts
180

(35
)
—

(6
)
(59
)
 
(1,303
)
(520
)
—

—

(47
)
Other
(2
)
—

195

—

1

 
(1
)
—

(95
)
—

(10
)
Total effect of derivatives
  not designated as hedges
$
154

$
(35
)
$
145

$
(6
)
$
(58
)
 
$
(1,375
)
$
(520
)
$
(99
)
$
—

$
(56
)