Derivatives (Tables)

9 Months Ended

Sep. 30, 2016

Derivatives

Gain (loss) on derivative instruments designated as cash flow hedges

The location in the consolidated statements of income and comprehensive income and amounts of gains and losses related to derivative instruments designated as cash flow hedges are provided in the following table.

Three months ended September 30, 2016

			Pretax Gain (Loss) Recognized in
	Pretax Gain (Loss)		Income on Effective Portion of			Ineffective Portion of Gain
	Recognized in Other		Derivative as a Result of			(Loss) on Derivative and
	Comprehensive		Reclassification from			Amount Excluded from
	Income on Effective		Accumulated Other			Effectiveness Testing
Derivatives in Cash Flow Hedging Relationships	Portion of Derivative		Comprehensive Income			Recognized in Income
(Millions)	Amount		Location	Amount		Location	Amount
Foreign currency forward/option contracts	$	(47)	Cost of sales	$	24	Cost of sales	$	—
Interest rate swap contracts		3	Interest expense		—	Interest expense		—
Total	$	(44)		$	24		$	—

Nine months ended September 30, 2016

			Pretax Gain (Loss) Recognized in
	Pretax Gain (Loss)		Income on Effective Portion of			Ineffective Portion of Gain
	Recognized in Other		Derivative as a Result of			(Loss) on Derivative and
	Comprehensive		Reclassification from			Amount Excluded from
	Income on Effective		Accumulated Other			Effectiveness Testing
Derivatives in Cash Flow Hedging Relationships	Portion of Derivative		Comprehensive Income			Recognized in Income
(Millions)	Amount		Location	Amount		Location	Amount
Foreign currency forward/option contracts	$	(178)	Cost of sales	$	105	Cost of sales	$	—
Interest rate swap contracts		(2)	Interest expense		(1)	Interest expense		—
Total	$	(180)		$	104		$	—

Three months ended September 30, 2015

			Pretax Gain (Loss) Recognized in
	Pretax Gain (Loss)		Income on Effective Portion of			Ineffective Portion of Gain
	Recognized in Other		Derivative as a Result of			(Loss) on Derivative and
	Comprehensive		Reclassification from			Amount Excluded from
	Income on Effective		Accumulated Other			Effectiveness Testing
Derivatives in Cash Flow Hedging Relationships	Portion of Derivative		Comprehensive Income			Recognized in Income
(Millions)	Amount		Location	Amount		Location	Amount
Foreign currency forward/option contracts	$	57	Cost of sales	$	55	Cost of sales	$	—
Interest rate swap contracts		—	Interest expense		—	Interest expense		—
Total	$	57		$	55		$	—

Nine months ended September 30, 2015

			Pretax Gain (Loss) Recognized in
	Pretax Gain (Loss)		Income on Effective Portion of			Ineffective Portion of Gain
	Recognized in Other		Derivative as a Result of			(Loss) on Derivative and
	Comprehensive		Reclassification from			Amount Excluded from
	Income on Effective		Accumulated Other			Effectiveness Testing
Derivatives in Cash Flow Hedging Relationships	Portion of Derivative		Comprehensive Income			Recognized in Income
(Millions)	Amount		Location	Amount		Location	Amount
Foreign currency forward/option contracts	$	177	Cost of sales	$	120	Cost of sales	$	—
Commodity price swap contracts		—	Cost of sales		(2)	Cost of sales		—
Interest rate swap contracts		—	Interest expense		(2)	Interest expense		—
Total	$	177		$	116		$	—

Gain (loss) on derivative instruments designated as fair value hedges

The location in the consolidated statements of income and amounts of gains and losses related to derivative instruments designated as fair value hedges and similar information relative to the hedged items are as follows:

Three months ended September 30, 2016

	Gain (Loss) on Derivative			Gain (Loss) on Hedged Item
Derivatives in Fair Value Hedging Relationships	Recognized in Income			Recognized in Income
(Millions)	Location	Amount		Location	Amount
Interest rate swap contracts	Interest expense	$	(10)	Interest expense	$	10
Total		$	(10)		$	10

Nine months ended September 30, 2016

	Gain (Loss) on Derivative			Gain (Loss) on Hedged Item
Derivatives in Fair Value Hedging Relationships	Recognized in Income			Recognized in Income
(Millions)	Location	Amount		Location	Amount
Interest rate swap contracts	Interest expense	$	24	Interest expense	$	(24)
Total		$	24		$	(24)

Three months ended September 30, 2015

	Gain (Loss) on Derivative			Gain (Loss) on Hedged Item
Derivatives in Fair Value Hedging Relationships	Recognized in Income			Recognized in Income
(Millions)	Location	Amount		Location	Amount
Interest rate swap contracts	Interest expense	$	20	Interest expense	$	(20)
Total		$	20		$	(20)

Nine months ended September 30, 2015

	Gain (Loss) on Derivative			Gain (Loss) on Hedged Item
Derivatives in Fair Value Hedging Relationships	Recognized in Income			Recognized in Income
(Millions)	Location	Amount		Location	Amount
Interest rate swap contracts	Interest expense	$	15	Interest expense	$	(15)
Total		$	15		$	(15)

Gain (loss) on derivative and non-derivative instruments designated as net investment hedges

The location in the consolidated statements of income and comprehensive income and amounts of gains and losses related to derivative and nonderivative instruments designated as net investment hedges are as follows. There were no reclassifications of the effective portion of net investment hedges out of accumulated other comprehensive income into income for the periods presented in the table below.

Three months ended September 30, 2016

	Pretax Gain (Loss)
	Recognized as
	Cumulative Translation
	within Other		Ineffective Portion of Gain (Loss) on
	Comprehensive Income		Instrument and Amount Excluded
Derivative and Nonderivative Instruments in Net Investment Hedging	on Effective Portion of		from Effectiveness Testing
Relationships	Instrument		Recognized in Income
(Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	(55)	N/A	$	—
Foreign currency forward contracts		(14)	Cost of sales		—
Total	$	(69)		$	—

Nine months ended September 30, 2016

	Pretax Gain (Loss)
	Recognized as
	Cumulative Translation
	within Other		Ineffective Portion of Gain (Loss) on
	Comprehensive Income		Instrument and Amount Excluded
Derivative and Nonderivative Instruments in Net Investment Hedging	on Effective Portion of		from Effectiveness Testing
Relationships	Instrument		Recognized in Income
(Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	(105)	N/A	$	—
Foreign currency forward contracts		(41)	Cost of sales		1
Total	$	(146)		$	1

Three months ended September 30, 2015

	Pretax Gain (Loss)
	Recognized as
	Cumulative Translation
	within Other		Ineffective Portion of Gain (Loss) on
	Comprehensive Income		Instrument and Amount Excluded
Derivative and Nonderivative Instruments in Net Investment Hedging	on Effective Portion of		from Effectiveness Testing
Relationships	Instrument		Recognized in Income
(Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	(24)	N/A	$	—
Foreign currency forward contracts		19	Cost of sales		4
Total	$	(5)		$	4

Nine months ended September 30, 2015

	Pretax Gain (Loss)
	Recognized as
	Cumulative Translation
	within Other		Ineffective Portion of Gain (Loss) on
	Comprehensive Income		Instrument and Amount Excluded
Derivative and Nonderivative Instruments in Net Investment Hedging	on Effective Portion of		from Effectiveness Testing
Relationships	Instrument		Recognized in Income
(Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	161	N/A	$	—
Foreign currency forward contracts		121	Cost of sales		8
Total	$	282		$	8

Gain (loss) on derivative instruments not designated as hedging instruments

The location in the consolidated statements of income and amounts of gains and losses related to derivative instruments not designated as hedging instruments are as follows:

	Three months ended September 30, 2016			Nine months ended September 30, 2016
	Gain (Loss) on Derivative Recognized in			Gain (Loss) on Derivative Recognized in
Derivatives Not Designated as Hedging Instruments	Income			Income
(Millions)	Location	Amount		Location	Amount
Foreign currency forward/option contracts	Cost of sales	$	(1)	Cost of sales	$	(7)
Foreign currency forward contracts	Interest expense		21	Interest expense		63
Total		$	20		$	56

	Three months ended September 30, 2015			Nine months ended September 30, 2015
	Gain (Loss) on Derivative Recognized in			Gain (Loss) on Derivative Recognized in
Derivatives Not Designated as Hedging Instruments	Income			Income
(Millions)	Location	Amount		Location	Amount
Foreign currency forward/option contracts	Cost of sales	$	(5)	Cost of sales	$	—
Foreign currency forward contracts	Interest expense		(34)	Interest expense		(6)
Commodity price swap contracts	Cost of sales		1	Cost of sales		(3)
Total		$	(38)		$	(9)

Location and Fair Value of Derivative Instruments

	Gross		Assets			Liabilities
September 30, 2016	Notional			Fair			Fair
(Millions)	Amount		Location	Value Amount		Location	Value Amount
Derivatives designated as
hedging instruments
Foreign currency forward/option contracts	$	1,960	Other current assets	$	23	Other current liabilities	$	71
Foreign currency forward/option contracts		1,103	Other assets		28	Other liabilities		43
Interest rate swap contracts		1,753	Other assets		49	Other current liabilities		—
Total derivatives designated as hedging instruments				$	100		$	114
Derivatives not designated as
hedging instruments
Foreign currency forward/option contracts	$	6,113	Other current assets	$	31	Other current liabilities	$	36
Total derivatives not designated as hedging instruments				$	31		$	36
Total derivative instruments				$	131		$	150

	Gross		Assets			Liabilities
December 31, 2015	Notional			Fair			Fair
(Millions)	Amount		Location	Value Amount		Location	Value Amount
Derivatives designated as
hedging instruments
Foreign currency forward/option contracts	$	2,815	Other current assets	$	148	Other current liabilities	$	14
Foreign currency forward/option contracts		1,240	Other assets		61	Other liabilities		3
Interest rate swap contracts		1,753	Other assets		24	Other liabilities		1
Total derivatives designated as hedging instruments				$	233		$	18
Derivatives not designated as
hedging instruments
Foreign currency forward/option contracts	$	5,359	Other current assets	$	63	Other current liabilities	$	51
Total derivatives not designated as hedging instruments				$	63		$	51
Total derivative instruments				$	296		$	69

Offsetting Assets

Offsetting of Financial Assets under Master Netting Agreements with Derivative Counterparties

September 30, 2016			Gross Amounts not Offset in the
			Consolidated Balance Sheet that are Subject
	Gross Amount of		to Master Netting Agreements
	Derivative Assets		Gross Amount of
	Presented in the		Eligible Offsetting
	Consolidated		Recognized		Cash Collateral		Net Amount of
(Millions)	Balance Sheet		Derivative Liabilities		Received		Derivative Assets
Derivatives subject to master netting agreements	$	131	$	38	$	—	$	93
Derivatives not subject to master netting agreements		—						—
Total	$	131					$	93

December 31, 2015			Gross Amounts not Offset in the
			Consolidated Balance Sheet that are Subject
	Gross Amount of		to Master Netting Agreements
	Derivative Assets		Gross Amount of
	Presented in the		Eligible Offsetting
	Consolidated		Recognized		Cash Collateral		Net Amount of
(Millions)	Balance Sheet		Derivative Liabilities		Received		Derivative Assets
Derivatives subject to master netting agreements	$	296	$	37	$	—	$	259
Derivatives not subject to master netting agreements		—						—
Total	$	296					$	259

Offsetting Liabilities

Offsetting of Financial Liabilities under Master Netting Agreements with Derivative Counterparties

September 30, 2016			Gross Amounts not Offset in the
			Consolidated Balance Sheet that are Subject
	Gross Amount of		to Master Netting Agreements
	Derivative Liabilities		Gross Amount of
	Presented in the		Eligible Offsetting
	Consolidated		Recognized		Cash Collateral		Net Amount of
(Millions)	Balance Sheet		Derivative Assets		Pledged		Derivative Liabilities
Derivatives subject to master netting agreements	$	137	$	38	$	—	$	99
Derivatives not subject to master netting agreements		13						13
Total	$	150					$	112

December 31, 2015			Gross Amounts not Offset in the
			Consolidated Balance Sheet that are Subject
	Gross Amount of		to Master Netting Agreements
	Derivative Liabilities		Gross Amount of
	Presented in the		Eligible Offsetting
	Consolidated		Recognized		Cash Collateral		Net Amount of
(Millions)	Balance Sheet		Derivative Assets		Pledged		Derivative Liabilities
Derivatives subject to master netting agreements	$	64	$	37	$	—	$	27
Derivatives not subject to master netting agreements		5						5
Total	$	69					$	32