v3.25.1
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 3 Months Ended
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Financial Instruments
The fair value of derivative financial instruments recognized in the Consolidated Balance Sheets is as follows:
(In millions)Notional
amount		Other
 current
assets		Other
noncurrent
assets		Other
current
liabilities		Other
noncurrent
liabilities		Type of
hedge		Term
March 31, 2025      
Derivatives designated as hedges      
Forward starting floating-to-fixed interest rate swaps
$162 $— $3 $— $— Cash flow10 years
Currency exchange contracts455 10 — 4 — Cash flow
1 to 11 months
Commodity contracts4 1 — — — Cash flow
1 to 10 months
Currency exchange contracts647 — — 1 — Net investment
3 months
Cross-currency interest rate swaps523 — — — 9 Net investment
5 years
Total $10 $3 $5 $9  
Derivatives not designated as hedges     
Currency exchange contracts$3,630 $16  $14  
1 to 7 months
December 31, 2024      
Derivatives designated as hedges      
Forward starting floating-to-fixed interest rate swaps
$156 $— $— $— $1 Cash flow11 years
Currency exchange contracts499 12 — 14 — Cash flow
1 to 13 months
Commodity contracts4 — — — — Cash flow
1 to 11 months
Currency exchange contracts545 3 — — — Net investment
3 months
Total $15 $— $14 $1   
Derivatives not designated as hedges      
Currency exchange contracts$4,945 $13  $29  
1 to 7 months
Schedule of Notional Amounts of Outstanding Derivative Positions and Commodity Contracts
As of March 31, 2025, the volume of outstanding commodity contracts that were entered into to hedge forecasted transactions:
CommodityMarch 31, 2025Term
Copper1 Millions of pounds
1 to 10 months
Schedule Of Derivative Instruments Recorded In Balance Sheet
The following amounts were recorded on the Consolidated Balance Sheets related to fixed-to-floating interest rate swaps:
(In millions)Carrying amount of the hedged
assets (liabilities)
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged asset (liabilities)1
Location on Consolidated Balance SheetsMarch 31, 2025December 31, 2024March 31, 2025December 31, 2024
Long-term debt$(647)$(647)$(35)$(37)
1 At March 31, 2025 and December 31, 2024, these amounts include the cumulative liability amount of fair value hedging adjustments remaining for which the hedge accounting has been discontinued of $35 million and $37 million, respectively.
Schedule of Impact of Hedging Activities to Consolidated Statement of Income
The impact of hedging activities to the Consolidated Statements of Income is as follows:
Three months ended March 31, 2025
(In millions)Net SalesCost of products soldInterest expense - net
Amounts from Consolidated Statements of Income$6,377 $3,930 $33 
Gain (loss) on derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps
Hedged item$— $— $(3)
Derivative designated as hedging instrument— — 3 
Currency exchange contracts
Hedged item$2 $6 $— 
Derivative designated as hedging instrument(2)(6)— 
Gain (loss) on derivatives designated as net investment hedges
Cross-currency interest rate swaps
Initial value of component excluded from effectiveness testing
  amortized to earnings		$— $— $1 
Three months ended March 31, 2024
(In millions)Net SalesCost of products soldInterest expense - net
Amounts from Consolidated Statements of Income$5,943 $3,725 $30 
Gain (loss) on derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps
Hedged item$— $— $(3)
Derivative designated as hedging instrument— — 3 
Currency exchange contracts
Hedged item$(1)$(7)$— 
Derivative designated as hedging instrument1 7 — 
Commodity contracts
Hedged item$— $1 $— 
Derivative designated as hedging instrument— (1)— 
Schedule of Amounts Recognized in Net Income
The impact of derivatives not designated as hedges to the Consolidated Statements of Income is as follows:
Gain (loss) recognized in Consolidated Statements of IncomeConsolidated Statements of Income classification
 Three months ended
March 31
(In millions)20252024
Gain (loss) on derivatives not designated as hedges
Currency exchange contracts$18 $20 Interest expense - net
Total$18 $20 
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income
The impact of derivative and non-derivative instruments designated as hedges to the Consolidated Statements of Income and Comprehensive Income is as follows:
Gain (loss) recognized in
other comprehensive
income (loss)		Location of gain (loss)
reclassified from
Accumulated other
comprehensive loss		Gain (loss) reclassified
from Accumulated other
comprehensive loss
Three months ended
March 31		Three months ended
March 31
(In millions)2025202420252024
Derivatives designated as cash
   flow hedges
Forward starting floating-to-fixed
   interest rate swaps		$4 $2 Interest expense - net$3 $3 
Currency exchange contracts4 3 Net sales and Cost of products sold(8)8 
Commodity contracts1 1 Cost of products sold— (1)
Derivatives designated as net
   investment hedges
Currency exchange contracts
Effective portion(7)11 Gain (loss) on sale of business— — 
Amount excluded from effectiveness
   testing		2 3 Interest expense - net2 4 
Cross-currency interest rate swaps
Effective portion(17)— Gain (loss) on sale of business— — 
Amount excluded from effectiveness
   testing not amortized to earnings		8 — Gain (loss) on sale of business— — 
Non-derivative designated as net
   investment hedges
Foreign currency denominated debt(123)72 Gain (loss) on sale of business— — 
Total$(128)$92 $(2)$15 
Schedule of Pre-Tax Gain (Loss) on Derivative Financial Instruments Included in AOCI
The pre-tax gain (loss) on derivative financial instruments designated as net investment hedges included in Accumulated other comprehensive loss is as follows:
Gain (loss) included in Accumulated other comprehensive loss
(In millions)March 31, 2025December 31, 2024
Effective portion
Currency exchange contracts$20$27
Cross-currency interest rate swaps(17)—
Amount excluded from effectiveness testing
Currency exchange contracts$—$1
Cross-currency interest rate swaps8—