Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVES (Tables)

v3.23.1
DERIVATIVES (Tables)
 3 Months Ended
Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)
The following table summarizes the net investment hedge activity in AOCL:
Three months ended
March 31,
In millions 2023
Type of Derivative Gain (Loss) 
Recognized in AOCL		 Gain (Loss) Reclassified from AOCL into Earnings
Foreign exchange forwards $ (15) $ — 
The following table summarizes the interest rate lock activity in AOCL:
Three months ended
March 31,
In millions 2023 2022
Type of Swap Gain (Loss) 
Recognized in AOCL		 Gain (Loss) Reclassified from AOCL into Interest Expense Gain (Loss) 
Recognized in AOCL		 Gain (Loss) Reclassified from AOCL into Interest Expense
Interest rate locks $ (9) $ —  $ 39  $ — 
Schedule of Interest Rate Derivatives
The following table summarizes the gains and losses:
Three months ended
March 31,
In millions 2023 2022
Type of Swap Gain (Loss) 
on Swaps		 Gain (Loss) on Borrowings Gain (Loss) 
on Swaps		 Gain (Loss) on Borrowings
Interest rate swaps(1)
$ 27  $ (22) $ (72) $ 80 
(1) The difference between the gain (loss) on swaps and borrowings represents hedge ineffectiveness.
Derivative Instruments, Gain (Loss)
The following table summarizes the effect on our Condensed Consolidated Statements of Net Income for derivative instruments classified as cash flow hedges. The table does not include amounts related to ineffectiveness as it was not material for the periods presented.
Three months ended
March 31,
In millions 2023 2022
Gain reclassified from AOCL into income - Net sales(1)
$ 1  $ 3 
Loss reclassified from AOCL into income - Cost of sales(1)(2)
—  (2)
(1) Includes foreign currency forward contracts.
(2) Includes commodity swap contracts.
Derivatives Not Designated as Hedging Instruments
The following table summarizes the effect on our Condensed Consolidated Statements of Net Income for derivative instruments not classified as cash flow hedges:
Three months ended
March 31,
In millions 2023 2022
Loss recognized in income - Cost of sales(1)
$ (2) $ (1)
Gain recognized in income - Other income (expense), net(1)
27  8 
(1) Includes foreign currency forward contracts.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table summarizes the location and fair value of derivative instruments on our Condensed Consolidated Balance Sheets:
Derivatives Designated as Hedging Instruments Derivatives Not Designated as Hedging Instruments
In millions March 31,
2023		 December 31,
2022		 March 31,
2023		 December 31,
2022
Notional amount $ 2,898  $ 3,051  $ 3,688  $ 2,900 
Derivative assets
Prepaid expenses and other current assets $ 16  $ 18  $ 7  $ 27 
Other assets 35  80  —  — 
Total derivative assets(1)
$ 51  $ 98  $ 7  $ 27 
Derivative liabilities
Other accrued expenses $ 22  $ 19  $ 2  $ 3 
Other liabilities 118  151  —  — 
Total derivative liabilities(1)
$ 140  $ 170  $ 2  $ 3 
(1) Estimates of the fair value of all derivative assets and liabilities above are derived from Level 2 inputs, which are estimated using actively quoted prices for similar instruments from brokers and observable inputs where available, including market transactions and third-party pricing services, or net asset values provided to investors. We do not currently have any Level 3 input measures and there were no transfers into or out of Level 2 or 3 during the three months ended March 31, 2023, or the year ended December 31, 2022.