Derivatives and Foreign Currency Operations (Tables)

12 Months Ended

Dec. 31, 2022

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):

		2022		2021
	Balance Sheet Location	Assets (Liabilities)
Derivatives designated as effective hedges:
Cash Flow Hedges:
Foreign currency contracts	Prepaid expenses and other current assets	$	5	$	12
Foreign currency contracts	Other accrued liabilities	(9)		(2)
Fair Value Hedges:
Interest rate swaps	Other assets	—		3
Interest rate swaps	Other accrued liabilities	(14)		—
Interest rate swaps	Other noncurrent liabilities	(16)		—
Net Investment Hedges:
Cross-currency swaps	Prepaid expenses and other current assets	28		18
Cross-currency swaps	Other assets	45		—
Cross-currency swaps	Other noncurrent liabilities	(75)		(41)
Derivatives not designated as effective hedges:
Foreign currency contracts	Prepaid expenses and other current assets	19		7
Foreign currency contracts	Other accrued liabilities	(10)		(14)
Total		$	(27)	$	(17)

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 2022, 2021 and 2020 related to derivative financial instruments designated as effective hedges:

	2022				2021				2020
	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)	$	—	$	(6)	$	—	$	(6)	$	—	$	(7)
Foreign currency contracts (3)	24		27		14		(17)		4		13
Cross-currency swaps (4)	21		—		69		—		(92)		—
Total	$	45	$	21	$	83	$	(23)	$	(88)	$	6

(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 (income) expense, net.