Derivatives (Tables)

9 Months Ended

Sep. 30, 2018

Derivatives

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

			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
Three months ended September 30, 2018	Portion of Derivative		Comprehensive Income			Recognized in Income
(Millions)	Amount		Location	Amount		Location	Amount
Foreign currency forward/option contracts	$	12	Cost of sales	$	(37)	Cost of sales	$	—
Interest rate swap contracts		10	Interest expense		—	Interest expense		—
Total	$	22		$	(37)		$	—

Nine months ended September 30, 2018	Portion of Derivative		Comprehensive Income			Recognized in Income
(Millions)	Amount		Location	Amount		Location	Amount
Foreign currency forward/option contracts	$	112	Cost of sales	$	(98)	Cost of sales	$	—
Interest rate swap contracts		10	Interest expense		(1)	Interest expense		—
Total	$	122		$	(99)		$	—

Three months ended September 30, 2017	Portion of Derivative		Comprehensive Income			Recognized in Income
(Millions)	Amount		Location	Amount		Location	Amount
Foreign currency forward/option contracts	$	(77)	Cost of sales	$	(2)	Cost of sales	$	—
Interest rate swap contracts		(3)	Interest expense		—	Interest expense		—
Total	$	(80)		$	(2)		$	—

Nine months ended September 30, 2017	Portion of Derivative		Comprehensive Income			Recognized in Income
(Millions)	Amount		Location	Amount		Location	Amount
Foreign currency forward/option contracts	$	(249)	Cost of sales	$	21	Cost of sales	$	—
Interest rate swap contracts		(6)	Interest expense		—	Interest expense		—
Total	$	(255)		$	21		$	—

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

	Gain (Loss) on Derivative			Gain (Loss) on Hedged Item
Three months ended September 30, 2018	Recognized in Income			Recognized in Income
(Millions)	Location	Amount		Location	Amount
Interest rate swap contracts	Interest expense	$	—	Interest expense	$	—
Total		$	—		$	—

Nine months ended September 30, 2018
(Millions)	Location	Amount		Location	Amount
Interest rate swap contracts	Interest expense	$	(12)	Interest expense	$	12
Total		$	(12)		$	12

Three months ended September 30, 2017
(Millions)	Location	Amount		Location	Amount
Interest rate swap contracts	Interest expense	$	—	Interest expense	$	—
Total		$	—		$	—

Nine months ended September 30, 2017
(Millions)	Location	Amount		Location	Amount
Interest rate swap contracts	Interest expense	$	(4)	Interest expense	$	4
Total		$	(4)		$	4

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

	Pretax Gain (Loss)
	Recognized as
	Cumulative Translation
	within Other		Ineffective Portion of Gain (Loss) on
	Comprehensive Income		Instrument and Amount Excluded
	on Effective Portion of		from Effectiveness Testing
Three months ended September 30, 2018	Instrument		Recognized in Income
(Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	(14)	Cost of sales	$	—
Foreign currency forward contracts		(3)	Cost of sales		1
Total	$	(17)		$	1

Nine months ended September 30, 2018	Comprehensive Income		Instrument and Amount Excluded
(Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	157	Cost of sales	$	(2)
Foreign currency forward contracts		14	Cost of sales		1
Total	$	171		$	(1)

Three months ended September 30, 2017	Comprehensive Income		Instrument and Amount Excluded
(Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	(179)	Cost of sales	$	—
Foreign currency forward contracts		(9)	Cost of sales		1
Total	$	(188)		$	1

Nine months ended September 30, 2017	Comprehensive Income		Instrument and Amount Excluded
(Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	(570)	Cost of sales	$	—
Foreign currency forward contracts		(36)	Cost of sales		6
Total	$	(606)		$	6

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

	Three months ended September 30, 2018			Nine months ended September 30, 2018
	Gain (Loss) on Derivative Recognized in			Gain (Loss) on Derivative Recognized in
	Income			Income
(Millions)	Location	Amount		Location	Amount
Foreign currency forward/option contracts	Cost of sales	$	11	Cost of sales	$	11
Foreign currency forward contracts	Interest expense		(7)	Interest expense		(98)
Total		$	4		$	(87)

	Three months ended September 30, 2017			Nine months ended September 30, 2017
	Gain (Loss) on Derivative Recognized in			Gain (Loss) on Derivative Recognized in
	Income			Income
(Millions)	Location	Amount		Location	Amount
Foreign currency forward/option contracts	Cost of sales	$	3	Cost of sales	$	8
Foreign currency forward contracts	Interest expense		(67)	Interest expense		(163)
Total		$	(64)		$	(155)

Location and Fair Value of Derivative Instruments

	Gross		Assets			Liabilities
September 30, 2018	Notional			Fair			Fair
(Millions)	Amount		Location	Value Amount		Location	Value Amount
Derivatives designated as
hedging instruments
Foreign currency forward/option contracts	$	2,107	Other current assets	$	51	Other current liabilities	$	22
Foreign currency forward/option contracts		1,250	Other assets		41	Other liabilities		11
Interest rate swap contracts		600	Other current assets		—	Other current liabilities		5
Interest rate swap contracts		1,303	Other assets		25	Other liabilities		11
Total derivatives designated as hedging instruments				$	117		$	49
Derivatives not designated as
hedging instruments
Foreign currency forward/option contracts	$	3,201	Other current assets	$	21	Other current liabilities	$	62
Total derivatives not designated as hedging instruments				$	21		$	62
Total derivative instruments				$	138		$	111

	Gross		Assets			Liabilities
December 31, 2017	Notional			Fair			Fair
(Millions)	Amount		Location	Value Amount		Location	Value Amount
Derivatives designated as
hedging instruments
Foreign currency forward/option contracts	$	2,204	Other current assets	$	7	Other current liabilities	$	109
Foreign currency forward/option contracts		1,392	Other assets		20	Other liabilities		56
Interest rate swap contracts		450	Other current assets		—	Other current liabilities		1
Interest rate swap contracts		1,503	Other assets		21	Other liabilities		6
Total derivatives designated as hedging instruments				$	48		$	172
Derivatives not designated as
hedging instruments
Foreign currency forward/option contracts	$	4,974	Other current assets	$	30	Other current liabilities	$	25
Total derivatives not designated as hedging instruments				$	30		$	25
Total derivative instruments				$	78		$	197

Offsetting Assets

Offsetting of Financial Assets under Master Netting Agreements with Derivative Counterparties

			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
September 30, 2018	Consolidated		Recognized		Cash Collateral		Net Amount of
(Millions)	Balance Sheet		Derivative Liabilities		Received		Derivative Assets
Derivatives subject to master netting agreements	$	138	$	45	$	—	$	93
Derivatives not subject to master netting agreements		—						—
Total	$	138					$	93

December 31, 2017
(Millions)
Derivatives subject to master netting agreements	$	78	$	27	$	—	$	51
Derivatives not subject to master netting agreements		—						—
Total	$	78					$	51

Offsetting Liabilities

Offsetting of Financial Liabilities under Master Netting Agreements with Derivative Counterparties

			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
September 30, 2018	Consolidated		Recognized		Cash Collateral		Net Amount of
(Millions)	Balance Sheet		Derivative Assets		Pledged		Derivative Liabilities
Derivatives subject to master netting agreements	$	111	$	45	$	—	$	66
Derivatives not subject to master netting agreements		—						—
Total	$	111					$	66

December 31, 2017
(Millions)
Derivatives subject to master netting agreements	$	197	$	27	$	—	$	170
Derivatives not subject to master netting agreements		—						—
Total	$	197					$	170