v3.22.4
FINANCIAL INSTRUMENTS, DERIVATIVES AND HEDGING ACTIVITIES (Tables)
 12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Activity Relating to Securitization Arrangement
The following is a summary of the activity relating to the arrangement.
as of and for the years ended December 31 (in millions)202220212020
Sold receivables at beginning of year$81 $96 $79 
Proceeds from sales of receivables291 339 348 
Cash collections (remitted to the owners of the receivables)(293)(346)(335)
Effect of foreign exchange rate changes(8)(8)4 
Sold receivables at end of year$71 $81 $96 
Summary of Gains and Losses on Derivative Instruments
The following tables summarize the gains and losses on our hedging instruments and the classification of those gains and losses within our consolidated financial statements for the years ended December 31, 2022, 2021 and 2020.
(in millions)Gain (loss)
recognized in OCI		Location of gain
(loss) in
income statement		Gain (loss) reclassified from
AOCI into income
202220212020202220212020
Cash flow hedges
Interest rate contracts$— $— $(131)Interest expense, net$(6)$(6)$(1)
Foreign exchange contracts28 5 (21)Cost of sales26 (23)(5)
Net investment hedges141 200 (224)Other (income) expense, net— — — 
Total$169 $205 $(376)$20 $(29)$(6)
Location of gain (loss) in
income statement		Gain (loss) recognized
in income
(in millions)202220212020
Undesignated derivative instruments
Foreign exchange contractsOther (income) expense, net$(30)$(36)$49 
Net of Tax Activity in Accumulated Other Comprehensive Income Related to Cash Flow Hedges The following table summarizes net-of-tax activity in AOCI, a component of stockholders’ equity, related to our cash flow hedges.
as of and for the year ended December 31 (in millions)202220212020
Accumulated other comprehensive income (loss) balance at beginning of year$(126)$(153)$(41)
(Loss) gain in fair value of derivatives during the year22 4 (117)
Amount reclassified to earnings during the year(15)23 5 
Accumulated other comprehensive income (loss) balance at end of year$(119)$(126)$(153)
Classification and Fair Value Amounts of Derivative Instruments
The following table summarizes the classification and fair values of derivative instruments reported in the consolidated balance sheet as of December 31, 2022.
Derivatives in asset positionsDerivatives in liability positions
(in millions)Balance sheet locationFair valueBalance sheet locationFair value
Derivative instruments designated as hedges
Foreign exchange contracts
Prepaid expenses and other current assets$8 Accrued expenses and other current liabilities$5 
Total derivative instruments designated as hedges8 5 
Undesignated derivative instruments
Foreign exchange contracts
Prepaid expenses and other current assets6 Accrued expenses and other current liabilities7 
Total derivative instruments$14 $12 
The following table summarizes the classification and fair values of derivative instruments reported in the consolidated balance sheet as of December 31, 2021.
Derivatives in asset positionsDerivatives in liability positions
(in millions)Balance sheet locationFair valueBalance sheet locationFair value
Derivative instruments designated as hedges
Foreign exchange contracts
Prepaid expenses and other current assets$6 Accrued expenses and other current liabilities$3 
Total derivative instruments designated as hedges6 3 
Undesignated derivative instruments
Foreign exchange contracts
Prepaid expenses and other current assets2 Accrued expenses and other current liabilities2 
Total derivative instruments$8 $5 
Derivative Positions Presented on Net Basis The following table provides information on our derivative positions as if they were presented on a net basis, allowing for the right of offset by counterparty.
December 31, 2022December 31, 2021
(in millions)AssetLiabilityAssetLiability
Gross amounts recognized in the consolidated balance sheets$14 $12 $8 $5 
Gross amount subject to offset in master netting arrangements not offset in the consolidated balance sheets(4)(4)(2)(2)
Total$10 $8 $6 $3 
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location
The following table presents the amounts recorded on the consolidated balance sheets related to fair value hedges:
Carrying amount of hedged itemsCumulative amount of fair value hedging adjustment included in the carrying amount of the hedged items (a)
(in millions)Balance as of December 31, 2022Balance as of December 31, 2021Balance as of December 31, 2022Balance as of December 31, 2021
Long-term debt$101 $101 $4 $4 
(a) These fair value hedges were terminated in 2018 and earlier periods.