Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVES (Tables)

v3.23.3
DERIVATIVES (Tables)
 9 Months Ended
Sep. 30, 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 accumulated other comprehensive loss (AOCL):
Three months ended Nine months ended
September 30, September 30,
In millions 2023 2022 2023 2022
Type of Derivative Gain (Loss) 
Recognized in AOCL		 Gain (Loss) Reclassified from AOCL into Earnings Gain (Loss) 
Recognized in AOCL		 Gain (Loss) Reclassified from AOCL into Earnings Gain (Loss) 
Recognized in AOCL		 Gain (Loss) Reclassified from AOCL into Earnings Gain (Loss) 
Recognized in AOCL		 Gain (Loss) Reclassified from AOCL into Earnings
Foreign exchange forwards $ 22  $ —  $ 29  $ —  $ (6) $ —  $ 29  $ — 
The following table summarizes the interest rate lock activity in AOCL:
Three months ended Nine months ended
September 30, September 30,
In millions 2023 2022 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 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 $ 15  $ —  $ 21  $ —  $ 16  $ —  $ 103  $ — 
Schedule of Interest Rate Derivatives
The following table summarizes the gains and losses:
Three months ended Nine months ended
September 30, September 30,
In millions 2023 2022 2023 2022
Type of Swap Gain (Loss) 
on Swaps		 Gain (Loss) on Borrowings Gain (Loss) 
on Swaps		 Gain (Loss) on Borrowings Gain (Loss) 
on Swaps		 Gain (Loss) on Borrowings Gain (Loss) 
on Swaps		 Gain (Loss) on Borrowings
Interest rate swaps (1)
$ (17) $ 19  $ (47) $ 45  $ (10) $ 13  $ (158) $ 159 
(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 Nine months ended
September 30, September 30,
In millions 2023 2022 2023 2022
Gain (loss) reclassified from AOCL into income - Net sales (1)
$ 7  $ (4) $ 12  $ (2)
Gain reclassified from AOCL into income - Cost of sales (1)(2)
1  1  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 designated as hedging instruments:
Three months ended Nine months ended
September 30, September 30,
In millions 2023 2022 2023 2022
Gain (loss) recognized in income - Cost of sales (1)
$ 1  $ 5  $ (2) $ 7 
Loss recognized in income - Other income (expense), net (1)
(60) (84) (77) (107)
(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 September 30,
2023		 December 31,
2022		 September 30,
2023		 December 31,
2022
Notional amount $ 2,824  $ 3,051  $ 3,968  $ 2,900 
Derivative assets
Prepaid expenses and other current assets $ 42  $ 18  $ 5  $ 27 
Other assets —  80  —  — 
Total derivative assets (1)
$ 42  $ 98  $ 5  $ 27 
Derivative liabilities
Other accrued expenses $ 5  $ 19  $ 21  $ 3 
Other liabilities 155  151  —  — 
Total derivative liabilities (1)
$ 160  $ 170  $ 21  $ 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 nine months ended September 30, 2023, or the year ended December 31, 2022.