Derivatives (Tables)

3 Months Ended

Mar. 31, 2021

Derivatives

Gains (losses) on derivative instruments dedesignated as hedges

	Pretax Gain (Loss) Recognized in Other				Pretax Gain (Loss) Reclassified from Accumulated
	Comprehensive Income on Derivative				Other Comprehensive Income into Income
	Three months ended March 31,				Three months ended March 31,
	2021		2020			2021		2020
(Millions)	Amount		Amount		Location	Amount		Amount
Foreign currency forward/option contracts	$	66	$	79	Cost of sales	$	(7)	$	18
Interest rate contracts		—		(2)	Interest expense		(2)		(2)
Total	$	66	$	77		$	(9)	$	16

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

					Cumulative Amount of Fair Value Hedging
	Carrying Value of the				Adjustment Included in the Carrying Value
(Millions)	Hedged Liabilities				of the Hedged Liabilities
Location on the Consolidated Balance Sheet	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Short-term borrowings and current portion of long-term debt	$	357	$	373	$	4	$	5
Long-term debt		225		225		5		6
Total	$	582	$	598	$	9	$	11

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

	Pretax Gain (Loss) Recognized				Amount of Gain (Loss) Excluded
	as Cumulative Translation within				from Effectiveness Testing
	Other Comprehensive Income				Recognized in Income
		Three months ended March 31,			Three months ended March 31,
	2021		2020			2021		2020
(Millions)	Amount		Amount		Location	Amount		Amount
Foreign currency denominated debt	$	167	$	15	Cost of sales	$	—	$	—
Foreign currency forward contracts		2		1	Cost of sales		(1)		5
Total	$	169	$	16		$	(1)	$	5

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

	Gain (Loss) on Derivative Recognized in Income
	Three months ended March 31,
		2021		2020
(Millions)	Location	Amount		Amount
Foreign currency forward/option contracts	Cost of sales	$	—	$	4
Foreign currency forward contracts	Interest expense		22		(16)
Total		$	22	$	(12)

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				Location and Amount of Gain (Loss) Recognized in Income
	Three months ended March 31, 2021				Three months ended March 31, 2020
(Millions)	Cost of sales		Other expense (income), net		Cost of sales		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	$	4,525	$	49	$	4,109	$	75
The effects of cash flow and fair value 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	$	(7)	$	—	$	18	$	—
Interest rate contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income		—		(2)		—		(2)
Gain or (loss) on fair value hedging relationships:
Interest rate contracts:
Hedged items	$	—	$	2	$	—	$	(2)
Derivatives designated as hedging instruments		—		(2)		—		2

Location and Fair Value of Derivative Instruments

	Gross		Assets			Liabilities
	Notional			Fair			Fair
March 31, 2021 (Millions)	Amount		Location	Value Amount		Location	Value Amount
Derivatives designated as
hedging instruments
Foreign currency forward/option contracts	$	1,656	Other current assets	$	36	Other current liabilities	$	38
Foreign currency forward/option contracts		685	Other assets		21	Other liabilities		10
Interest rate contracts		403	Other current assets		5	Other current liabilities		—
Total derivatives designated as hedging instruments				$	62		$	48
Derivatives not designated as
hedging instruments
Foreign currency forward/option contracts	$	3,487	Other current assets	$	22	Other current liabilities	$	15
Total derivatives not designated as hedging instruments				$	22		$	15
Total derivative instruments				$	84		$	63

	Gross		Assets			Liabilities
	Notional			Fair			Fair
December 31, 2020 (Millions)	Amount		Location	Value Amount		Location	Value Amount
Derivatives designated as
hedging instruments
Foreign currency forward/option contracts	$	1,630	Other current assets	$	14	Other current liabilities	$	67
Foreign currency forward/option contracts		669	Other assets		10	Other liabilities		25
Interest rate contracts		403	Other current assets		7	Other current liabilities		—
Total derivatives designated as hedging instruments				$	31		$	92
Derivatives not designated as
hedging instruments
Foreign currency forward/option contracts	$	3,166	Other current assets	$	13	Other current liabilities	$	14
Total derivatives not designated as hedging instruments				$	13		$	14
Total derivative instruments				$	44		$	106

Offsetting Assets

			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
March 31, 2021 (Millions)	Balance Sheet		Derivative Liabilities		Received		Derivative Assets
Derivatives subject to master netting agreements	$	84	$	34	$	—	$	50
Derivatives not subject to master netting agreements		—						—
Total	$	84					$	50

December 31, 2020 (Millions)
Derivatives subject to master netting agreements	$	44	$	11	$	—	$	33
Derivatives not subject to master netting agreements		—						—
Total	$	44					$	33

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
March 31, 2021 (Millions)	Balance Sheet		Derivative Assets		Pledged		Liabilities
Derivatives subject to master netting agreements	$	63	$	34	$	—	$	29
Derivatives not subject to master netting agreements		—						—
Total	$	63					$	29

December 31, 2020 (Millions)
Derivatives subject to master netting agreements	$	106	$	11	$	—	$	95
Derivatives not subject to master netting agreements		—						—
Total	$	106					$	95