Derivatives and Foreign Currency Operations (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value of Derivative Financial Instruments

The following table presents the fair value of derivative financial instruments at December 31, (in millions):

		2020		2019
	Balance Sheet Location	Assets/(Liabilities)
Derivatives designated as effective hedges:
Cash Flow Hedges:
Foreign currency contracts	Prepaid expenses and other current assets	$	1	$	1
Foreign currency contracts	Other accrued liabilities	(19)		(13)
Fair Value Hedges:
Interest rate swaps	Other assets	7		2
Interest rate swaps	Other accrued liabilities	—		(1)
Net Investment Hedges:
Cross-currency swaps	Prepaid expenses and other current assets	10		—
Cross-currency swaps	Other noncurrent liabilities	(102)		—
Derivatives not designated as effective hedges:
Foreign currency contracts	Prepaid expenses and other current assets	10		10
Foreign currency contracts	Other accrued liabilities	(17)		(4)
Total		$	(110)	$	(5)

Schedule of Pretax Effects of Derivative Financial Instruments Designated or Previously Designated as Effective Hedges

The following table presents pre-tax gain and loss activity for 2020, 2019 and 2018 related to derivative financial instruments designated as effective hedges:

	2020				2019				2018
	Gain/(Loss)				Gain/(Loss)				Gain/(Loss)
(in millions)	Recognized in OCL (1)		Reclassified from AOCL to Income		Recognized in OCL (1)		Reclassified from AOCL to Income		Recognized in OCL (1)		Reclassified from AOCL to Income
Interest rate swaps (2)	$	—	$	(7)	$	—	$	(8)	$	—	$	(27)
Foreign currency contracts (3)	4		13		(16)		15		24		(13)
Cross-currency swaps (4)	(92)		—		—		—		(2)		(3)
Total	$	(88)	$	6	$	(16)	$	7	$	22	$	(43)

(1)Represents effective portion recognized in Other Comprehensive Loss (“OCL”).

(2)Portion reclassified from AOCL to income recognized in interest expense, net.

(3)Portion reclassified from AOCL to income recognized in net sales and cost of products sold.

(4)Portion reclassified from AOCL to income recognized in other expense, net.