Derivatives (Tables)

12 Months Ended

Dec. 31, 2019

Derivatives

Gains (losses) on derivative instruments dedesignated as hedges

	Pretax Gain (Loss)
	Recognized in Other		Pretax Gain (Loss) Reclassified
	Comprehensive		from Accumulated Other
	Income on Derivative		Comprehensive Income into Income
Year ended December 31, 2019 (Millions)	Amount		Location	Amount
Foreign currency forward/option contracts	$	96	Cost of sales	$	74
Interest rate swap contracts		(122)	Interest expense		(4)
Total	$	(26)		$	70

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
	Portion of Derivative		Comprehensive Income			Recognized in Income
Year ended December 31, 2018 (Millions)	Amount		Location	Amount		Location	Amount
Foreign currency forward/option contracts	$	151	Cost of sales	$	(95)	Cost of sales	$	—
Interest rate swap contracts		(18)	Interest expense		(1)	Interest expense		—
Total	$	133		$	(96)		$	—

Year ended December 31, 2017 (Millions)	Amount		Location	Amount		Location	Amount
Foreign currency forward/option contracts	$	(305)	Cost of sales	$	8	Cost of sales	$	—
Interest rate swap contracts		(6)	Interest expense		(1)	Interest expense		—
Total	$	(311)		$	7		$	—

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

	Gain (Loss) on Derivative			Gain (Loss) on Hedged Item
	Recognized in Income			Recognized in Income
Year ended December 31, 2018 (Millions)	Location	Amount		Location	Amount
Interest rate swap contracts	Interest expense	$	(5)	Interest expense	$	5
Total		$	(5)		$	5

Year ended December 31, 2017 (Millions)	Location	Amount		Location	Amount
Interest rate swap contracts	Interest expense	$	(9)	Interest expense	$	9
Total		$	(9)		$	9

The following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges:

					Cumulative Amount of Fair Value Hedging
	Carrying Value of the				Adjustment Included in the Carrying Value
	Hedged Liabilities (in millions)				of the Hedged Liabilities (in millions)
Location on the Consolidated Balance Sheet	December 31, 2019		December 31, 2018		December 31, 2019		December 31, 2018
Short-term borrowings and current portion of long-term debt	$	499	$	596	$	—	$	(4)
Long-term debt		775		1,276		22		18
Total	$	1,274	$	1,872	$	22	$	14

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

	Pretax Gain (Loss)
	Recognized as
	Cumulative Translation		Amount of Gain (Loss) Excluded
	within Other		from Effectiveness Testing
	Comprehensive Income		Recognized in Income
Year ended December 31, 2019 (Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	108	Cost of sales	$	—
Foreign currency forward contracts		32	Cost of sales		20
Total	$	140		$	20

	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
	Instrument		Recognized in Income
Year ended December 31, 2018 (Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	222	Cost of sales	$	(2)
Foreign currency forward contracts		18	Cost of sales		4
Total	$	240		$	2

Year ended December 31, 2017 (Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	(667)	N/A	$	—
Foreign currency forward contracts		(58)	Cost of sales		7
Total	$	(725)		$	7

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:

	Gain (Loss) on Derivative Recognized in Income
		Year ended December 31,
			2019		2018		2017
(Millions)	Location		Amount		Amount		Amount
Foreign currency forward/option contracts	Cost of sales	$	2	$	13	$	11
Foreign currency forward contracts	Interest expense		(13)		(109)		(141)
Total		$	(11)	$	(96)	$	(130)

Location in consolidated statement of income and pre-tax amounts recognized in income related to derivative instruments designated in cash flow or fair value hedging relationship

	Location and Amount of Gain (Loss) Recognized in Income
	Year ended December 31, 2019
(Millions)		Cost of Goods Sold		Other expense (income), net
Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of cash flow or fair value hedges are recorded	$	17,136	$	462
The effects of fair value and cash flow hedging:
Gain or (loss) on cash flow hedging relationships:
Foreign currency forward/option contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income	$	74	$	—
Interest rate swap contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income		—		(4)
Gain or (loss) on fair value hedging relationships:
Interest rate swap contracts:
Hedged items	$	—	$	(8)
Derivatives designated as hedging instruments		—		8

Location and Fair Value of Derivative Instruments

	Gross		Assets			Liabilities
	Notional			Fair			Fair
December 31, 2019 (Millions)	Amount		Location	Value Amount		Location	Value Amount
Derivatives designated as
hedging instruments
Foreign currency forward/option contracts	$	1,995	Other current assets	$	64	Other current liabilities	$	9
Foreign currency forward/option contracts		1,041	Other assets		50	Other liabilities		3
Interest rate swap contracts		500	Other current assets		—	Other current liabilities		—
Interest rate swap contracts		603	Other assets		17	Other liabilities		—
Total derivatives designated as hedging instruments				$	131		$	12
Derivatives not designated as
hedging instruments
Foreign currency forward/option contracts	$	2,684	Other current assets	$	11	Other current liabilities	$	8
Total derivatives not designated as hedging instruments				$	11		$	8
Total derivative instruments				$	142		$	20

	Gross		Assets			Liabilities
	Notional			Fair			Fair
December 31, 2018 (Millions)	Amount		Location	Value Amount		Location	Value Amount
Derivatives designated as
hedging instruments
Foreign currency forward/option contracts	$	2,277	Other current assets	$	74	Other current liabilities	$	12
Foreign currency forward/option contracts		1,099	Other assets		39	Other liabilities		4
Interest rate swap contracts		1,000	Other current assets		—	Other current liabilities		14
Interest rate swap contracts		1,403	Other assets		19	Other liabilities		17
Total derivatives designated as hedging instruments				$	132		$	47
Derivatives not designated as
hedging instruments
Foreign currency forward/option contracts	$	2,484	Other current assets	$	14	Other current liabilities	$	6
Total derivatives not designated as hedging instruments				$	14		$	6
Total derivative instruments				$	146		$	53

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		Cash
	Consolidated		Recognized		Collateral		Net Amount of
December 31, 2019 (Millions)	Balance Sheet		Derivative Liabilities		Received		Derivative Assets
Derivatives subject to master netting agreements	$	142	$	14	$	—	$	128
Derivatives not subject to master netting agreements		—						—
Total	$	142					$	128

December 31, 2018 (Millions)
Derivatives subject to master netting agreements	$	146	$	38	$	—	$	108
Derivatives not subject to master netting agreements		—						—
Total	$	146					$	108

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		Cash		Net Amount of
	Consolidated		Recognized		Collateral		Derivative
December 31, 2019 (Millions)	Balance Sheet		Derivative Assets		Pledged		Liabilities
Derivatives subject to master netting agreements	$	20	$	14	$	—	$	6
Derivatives not subject to master netting agreements		—						—
Total	$	20					$	6

December 31, 2018 (Millions)
Derivatives subject to master netting agreements	$	53	$	38	$	—	$	15
Derivatives not subject to master netting agreements		—						—
Total	$	53					$	15