SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 7) RECENTLY ISSUED AND RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS - USD ($) $ in Millions |
12 Months Ended | ||||
|---|---|---|---|---|---|
Jan. 01, 2019 |
Jan. 01, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
| New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 30 | ||||
| ASU 2014-09 - Revenue Recognition | |||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
| New Accounting Pronouncement or Change in Accounting Principle, Description | In May 2014, the FASB amended its standards related to revenue recognition to replace all existing revenue recognition guidance and provide a single, comprehensive model for all contracts with customers. The revised standard contains principles to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that we recognize revenue to depict the transfer of goods or services to customers at an amount that we expect to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of the time value of money in the transaction price and allowing estimation of variable consideration to be recognized before contingencies are resolved in certain circumstances. The amendment also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in those judgments as well as assets recognized from costs incurred to fulfill these contracts.The standard allowed for either full or modified retrospective adoption effective for annual and interim periods beginning January 1, 2018 and we adopted using the modified retrospective approach. We elected to apply this guidance retrospectively only to contracts that were not completed at January 1, 2018.We identified a change in the manner in which we account for certain license income. We license certain technology to our unconsolidated joint ventures that meets the definition of functional under the standard, which requires that revenue be recognized at a point in time rather than the previous requirement of recognizing it over the license term. Using the modified retrospective adoption method, we recorded an adjustment to our opening equity balance at January 1, 2018, to account for the differences between existing license income recorded and what would have been recorded under the new standard for contracts for which we started recognizing revenue prior to the adoption date. There was not a material impact on any individual year from this change.We also identified transactions where revenue recognition was historically limited to the amount of billings not contingent on our future performance. With the allocation provisions of the new model, we accelerated the timing of revenue recognition for amounts related to satisfied performance obligations that would be delayed under the historical guidance. The impact of this change was not material.On an ongoing basis, this amendment is not expected to have a material impact on our Consolidated Financial Statements including our internal controls over financial reporting, but resulted in expanded disclosures in the Notes to our Consolidated Financial Statements.We recorded a net increase to opening retained earnings of $28 million, net of tax, as of January 1, 2018, due to the cumulative impact of adopting the new revenue standard, with the impact primarily related to our technology licenses that now qualify for point in time recognition rather than over time. The impact to any individual financial statement line item as a result of applying the new standard, as compared to the old standard, was not material for the year ended December 31, 2018. | ||||
| New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 28 | ||||
| ASU 2018-14 - Compensation-Retirement Benefits-Defined Benefit Plans-General | |||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
| New Accounting Pronouncement or Change in Accounting Principle, Description | In August 2018, the FASB amended its standards related to the disclosures of pension and other postretirement benefit plans in the financial statements. The amendments removed certain existing disclosure requirements and added the requirement to disclose an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The amendments also clarified the existing disclosure requirements related to the projected benefit obligation (PBO), the fair value of plan assets for plans with PBOs in excess of plan assets and the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets. These amendments are required to be applied on a retrospective basis to all periods presented. We early adopted the amendments at December 31, 2018. | ||||
| ASU 2017-07 - Presentation of Net Periodic Pension and Post-retirement Benefit Costs | |||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
| New Accounting Pronouncement or Change in Accounting Principle, Description | In March 2017, the FASB amended its standards related to the presentation of pension and other postretirement benefit costs in the financial statements beginning January 1, 2018. Under the new standard, we are required to separate service costs from all other elements of pension costs and reflect the other elements of pension costs outside of operating income in our Consolidated Statements of Income. In addition, the standard limits the amount eligible for capitalization (into inventory or self-constructed assets) to the amount of service cost. This portion of the standard was applied on a prospective basis. The remainder of the new standard was applied on a retrospective basis using a practical expedient as the estimation basis for the reclassification of prior period non-service cost components of net periodic benefit cost from operating income to non-operating income. As a result, we revised our Consolidated Statements of Income by the following amounts: Favorable / (Unfavorable)In millions 2017 2016Cost of sales $10 $6Selling, general and administrative expenses (39) (53)Research, development and engineering expenses (2) (1)Total change in operating income (31) (48)Other non-operating income, net 31 48Total change in income before income taxes $— $— | ||||
| ASU 2017-04 - Intangibles-Goodwill and Other | |||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
| New Accounting Pronouncement or Change in Accounting Principle, Description | In January 2017, the FASB amended its standards related to goodwill impairment testing to simplify the annual testing process. Under the amendment, the impairment of goodwill is now calculated as the difference between the fair value of the reporting unit and the carrying value of the reporting unit. Step two of the former impairment model is no longer required. We early adopted this standard in the fourth quarter of 2018 as allowed by the amendment, in order to streamline our impairment testing process. The standard applies prospectively beginning with our assessments performed in the fourth quarter. As we did not have any impairments of goodwill during the year, adoption of the standard did not have an impact on our Consolidated Financial Statements. | ||||
| ASU 2016-15 - Classification of Cash Receipts and Cash Payments | |||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
| New Accounting Pronouncement or Change in Accounting Principle, Description | In August 2016, the FASB amended its standards related to the classification of certain cash receipts and cash payments which became effective for us beginning January 1, 2018. The new standard made eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. Adoption of this standard did not have a material impact on our Consolidated Financial Statements. | ||||
| ASU 2016-01 - Recognition and Measurement of Financial Assets and Liabilities | |||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
| New Accounting Pronouncement or Change in Accounting Principle, Description | In January 2016, the FASB amended its standards related to the accounting for certain financial instruments which became effective for us beginning January 1, 2018. This amendment addresses certain aspects of recognition, measurement, presentation and disclosure. The standard resulted in a cumulative effect increase to opening retained earnings of $2 million in our Consolidated Financial Statements. | ||||
| New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 2 | ||||
| ASU 2018-15 - Intangibles Goodwill and Other - Internal-Use Software | |||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
| New Accounting Pronouncement or Change in Accounting Principle, Description | In August 2018, the FASB issued a new standard that aligns the accounting for implementation costs incurred in a cloud computing arrangement accounted for as a service contract with the model currently used for internal use software costs. Under the new standard, costs that meet certain criteria will be required to be capitalized on the balance sheet and subsequently amortized over the term of the hosting arrangement. The standard is effective for us beginning on January 1, 2020, with early adoption permitted. The standard allows for either prospective or retrospective transition. We are still evaluating the impact of this standard on our financial statements. | ||||
| ASU 2017-12 - Derivatives and Hedging | |||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
| New Accounting Pronouncement or Change in Accounting Principle, Description | In August 2017, the FASB amended its standards related to accounting for derivatives and hedging. These amendments allow the initial hedge effectiveness assessment to be performed by the end of the first quarter in which the hedge is designated rather than concurrently with entering into the hedge transaction. The changes also expand the use of a periodic qualitative hedge effectiveness assessment in lieu of an ongoing quantitative assessment performed throughout the life of the hedge. The revision removes the requirement to record ineffectiveness on cash flow hedges through the income statement when a hedge is considered highly effective, instead deferring all related hedge gains and losses in other comprehensive income until the hedged item impacts earnings. The modifications permit hedging the contractually-specified price of a component of a commodity purchase and revises certain disclosure requirements. The amendments are effective January 1, 2019. The revised standard is required to be adopted on a modified retrospective basis for any cash flow or net investment hedge relationships that exist on the date of adoption and prospectively for disclosures. We do not expect the amendments to have a material effect on our Consolidated Financial Statements. | ||||
| ASU 2016-13 - Measurement of Credit Losses on Financial Instruments | |||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
| New Accounting Pronouncement or Change in Accounting Principle, Description | In June 2016, the FASB amended its standards related to accounting for credit losses on financial instruments. This amendment introduces new guidance for accounting for credit losses on instruments including trade receivables and held-to-maturity debt securities. The new rules are effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We do not expect adoption of this standard to have a material impact on our Consolidated Financial Statements. | ||||
| ASU 2016-02 - Leases | |||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
| New Accounting Pronouncement or Change in Accounting Principle, Description | In February 2016, the FASB amended its standards related to the accounting for leases. Under the new standard, lessees will now be required to recognize substantially all leases on the balance sheet as both a right-of-use asset and a liability. The standard will continue to have two types of leases for income statement recognition purposes: operating leases and finance leases. Operating leases will result in the recognition of a single lease expense on a straight-line basis over the lease term similar to the treatment for operating leases under today's standards. Finance leases will result in an accelerated expense similar to the accounting for capital leases under today's standards. The determination of a lease classification as operating or finance will occur in a manner similar to today's standard. The new standard also contains amended guidance regarding the identification of embedded leases in service contracts and the identification of lease and non-lease components of an arrangement. The new standard is effective on January 1, 2019 and we will adopt on a modified retrospective basis with a cumulative effect adjustment, if any, to be recorded in retained earnings on January 1, 2019. We do not expect this adjustment to be material. Based on our current lease portfolio, adoption of the standard will result in an increase in operating lease assets and liabilities in a range of $445 million to $495 million with an immaterial impact on our Consolidated Statements of Income; however this estimate is subject to change as we finalize our implementation. We are implementing enhanced internal controls and a software solution to comply with the requirements of the standard. | ||||
| Cost of Sales | ASU 2017-07 - Presentation of Net Periodic Pension and Post-retirement Benefit Costs | |||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
| New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 10 | $ 6 | |||
| Selling, General and Administrative Expenses | ASU 2017-07 - Presentation of Net Periodic Pension and Post-retirement Benefit Costs | |||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
| New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (39) | (53) | |||
| Research and Development Expense | ASU 2017-07 - Presentation of Net Periodic Pension and Post-retirement Benefit Costs | |||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
| New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (2) | (1) | |||
| Total change in operating income | ASU 2017-07 - Presentation of Net Periodic Pension and Post-retirement Benefit Costs | |||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
| New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (31) | (48) | |||
| Other non-operating income, net | ASU 2017-07 - Presentation of Net Periodic Pension and Post-retirement Benefit Costs | |||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
| New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 31 | 48 | |||
| Total change in income before income taxes | ASU 2017-07 - Presentation of Net Periodic Pension and Post-retirement Benefit Costs | |||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
| New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 0 | $ 0 | |||
| Minimum | ASU 2016-02 - Leases | Scenario, Forecast | |||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
| New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 445 | ||||
| Maximum | ASU 2016-02 - Leases | Scenario, Forecast | |||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
| New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 495 | ||||