Derivatives (Tables)

12 Months Ended

Dec. 31, 2016

Derivatives

Gain (loss) on derivative instruments designated as cash flow hedges

Year Ended December 31, 2016

Pretax Gain (Loss) Recognized in

Pretax Gain (Loss)

Income on Effective Portion of

Ineffective Portion of Gain

Recognized in Other

Derivative as a Result of

(Loss) on Derivative and

Comprehensive

Reclassification from

Amount Excluded from

Income on Effective

Accumulated Other

Effectiveness Testing

Derivatives in Cash Flow Hedging Relationships

Portion of Derivative

Comprehensive Income

Recognized in Income

(Millions)

Amount

Location

Amount

Location

Amount

Foreign currency forward/option contracts

Cost of sales

110

Cost of sales

—

Interest rate swap contracts

(1)

Interest expense

(1)

Interest expense

—

Total

109

—

Year Ended December 31, 2015

Pretax Gain (Loss) Recognized in

Pretax Gain (Loss)

Income on Effective Portion of

Ineffective Portion of Gain

Recognized in Other

Derivative as a Result of

(Loss) on Derivative and

Comprehensive

Reclassification from

Amount Excluded from

Income on Effective

Accumulated Other

Effectiveness Testing

Derivatives in Cash Flow Hedging Relationships

Portion of Derivative

Comprehensive Income

Recognized in Income

(Millions)

Amount

Location

Amount

Location

Amount

Foreign currency forward/option contracts

212

Cost of sales

178

Cost of sales

—

Commodity price swap contracts

—

Cost of sales

(2)

Cost of sales

—

Interest rate swap contracts

—

Interest expense

(2)

Interest expense

—

Total

212

174

—

Year Ended December 31, 2014

Pretax Gain (Loss) Recognized in

Pretax Gain (Loss)

Income on Effective Portion of

Ineffective Portion of Gain

Recognized in Other

Derivative as a Result of

(Loss) on Derivative and

Comprehensive

Reclassification from

Amount Excluded from

Income on Effective

Accumulated Other

Effectiveness Testing

Derivatives in Cash Flow Hedging Relationships

Portion of Derivative

Comprehensive Income

Recognized in Income

(Millions)

Amount

Location

Amount

Location

Amount

Foreign currency forward/option contracts

183

Cost of sales

—

Commodity price swap contracts

(4)

Cost of sales

—

Interest rate swap contracts

(8)

Interest expense

(1)

Interest expense

—

Total

171

—

Gain (loss) on derivative instruments designated as fair value hedges

Year Ended December 31, 2016


	Gain (Loss) on Derivative			Gain (Loss) on Hedged Item
Derivatives in Fair Value Hedging Relationships	Recognized in Income			Recognized in Income
(Millions)	Location	Amount		Location	Amount
Interest rate swap contracts	Interest expense	$	(2)	Interest expense	$	2
Total		$	(2)		$	2

Year Ended December 31, 2015


	Gain (Loss) on Derivative			Gain (Loss) on Hedged Item
Derivatives in Fair Value Hedging Relationships	Recognized in Income			Recognized in Income
(Millions)	Location	Amount		Location	Amount
Interest rate swap contracts	Interest expense	$	(2)	Interest expense	$	2
Total		$	(2)		$	2

Year Ended December 31, 2014


	Gain (Loss) on Derivative			Gain (Loss) on Hedged Item
Derivatives in Fair Value Hedging Relationships	Recognized in Income			Recognized in Income
(Millions)	Location	Amount		Location	Amount
Interest rate swap contracts	Interest expense	$	11	Interest expense	$	(11)
Total		$	11		$	(11)

Gain (loss) on derivative and non-derivative instruments designated as net investment hedges

Year ended December 31, 2016


	Pretax Gain (Loss)
	Recognized as
	Cumulative Translation
	within Other		Ineffective Portion of Gain (Loss) on
	Comprehensive Income		Instrument and Amount Excluded
Derivative and Nonderivative Instruments in Net Investment Hedging	on Effective Portion of		from Effectiveness Testing
Relationships	Instrument		Recognized in Income
(Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	215	N/A	$	—
Foreign currency forward contracts		(9)	Cost of sales		(3)
Total	$	206		$	(3)

Year ended December 31, 2015


	Pretax Gain (Loss)
	Recognized as
	Cumulative Translation
	within Other		Ineffective Portion of Gain (Loss) on
	Comprehensive Income		Instrument and Amount Excluded
Derivative and Nonderivative Instruments in Net Investment Hedging	on Effective Portion of		from Effectiveness Testing
Relationships	Instrument		Recognized in Income
(Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	63	N/A	$	—
Foreign currency forward contracts		143	Cost of sales		11
Total	$	206		$	11

Year ended December 31, 2014


	Pretax Gain (Loss)
	Recognized as
	Cumulative Translation
	within Other		Ineffective Portion of Gain (Loss) on
	Comprehensive Income		Instrument and Amount Excluded
Derivative and Nonderivative Instruments in Net Investment Hedging	on Effective Portion of		from Effectiveness Testing
Relationships	Instrument		Recognized in Income
(Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	152	N/A	$	—
Foreign currency forward contracts		94	Cost of sales		1
Total	$	246		$	1

Gain (loss) on derivative instruments not designated as hedging instruments

The location in the consolidated statements of income and amounts of gains and losses related to derivative instruments not designated as hedging instruments are as follows:


	Gain (Loss) on Derivative Recognized in Income
			Year ended		Year ended		Year ended
			December 31,		December 31,		December 31,
Derivatives Not Designated as Hedging Instruments			2016		2015		2014
(Millions)	Location		Amount		Amount		Amount
Foreign currency forward/option contracts	Cost of sales	$	(14)	$	5	$	10
Foreign currency forward contracts	Interest expense		9		82		(40)
Commodity price swap contracts	Cost of sales		—		(3)		—
Total		$	(5)	$	84	$	(30)

Location and Fair Value of Derivative Instruments


	Gross		Assets			Liabilities
December 31, 2016	Notional			Fair			Fair
(Millions)	Amount		Location	Value Amount		Location	Value Amount
Derivatives designated as
hedging instruments
Foreign currency forward/option contracts	$	2,160	Other current assets	$	107	Other current liabilities	$	9
Foreign currency forward/option contracts		1,459	Other assets		86	Other liabilities		3
Interest rate swap contracts		1,953	Other assets		25	Other current liabilities		1
Total derivatives designated as hedging instruments				$	218		$	13

Derivatives not designated as
hedging instruments
Foreign currency forward/option contracts	$	5,655	Other current assets	$	41	Other current liabilities	$	82
Total derivatives not designated as hedging instruments				$	41		$	82

Total derivative instruments				$	259		$	95


	Gross		Assets			Liabilities
December 31, 2015	Notional			Fair			Fair
(Millions)	Amount		Location	Value Amount		Location	Value Amount
Derivatives designated as
hedging instruments
Foreign currency forward/option contracts	$	2,815	Other current assets	$	148	Other current liabilities	$	14
Foreign currency forward/option contracts		1,240	Other assets		61	Other liabilities		3
Interest rate swap contracts		1,753	Other assets		24	Other liabilities		1
Total derivatives designated as hedging instruments				$	233		$	18

Derivatives not designated as
hedging instruments
Foreign currency forward/option contracts	$	5,359	Other current assets	$	63	Other current liabilities	$	51
Total derivatives not designated as hedging instruments				$	63		$	51

Total derivative instruments				$	296		$	69

Offsetting Assets

Offsetting of Financial Assets under Master Netting Agreements with Derivative Counterparties


December 31, 2016			Gross Amounts not Offset in the
			Consolidated Balance Sheet that are Subject
	Gross Amount of		to Master Netting Agreements
	Derivative Assets		Gross Amount of
	Presented in the		Eligible Offsetting
	Consolidated		Recognized		Cash Collateral		Net Amount of
(Millions)	Balance Sheet		Derivative Liabilities		Received		Derivative Assets
Derivatives subject to master netting agreements	$	259	$	39	$	—	$	220
Derivatives not subject to master netting agreements		—						—
Total	$	259					$	220


December 31, 2015			Gross Amounts not Offset in the
			Consolidated Balance Sheet that are Subject
	Gross Amount of		to Master Netting Agreements
	Derivative Assets		Gross Amount of
	Presented in the		Eligible Offsetting
	Consolidated		Recognized		Cash Collateral		Net Amount of
(Millions)	Balance Sheet		Derivative Liabilities		Received		Derivative Assets
Derivatives subject to master netting agreements	$	296	$	37	$	—	$	259
Derivatives not subject to master netting agreements		—						—
Total	$	296					$	259

Offsetting Liabilities

Offsetting of Financial Liabilities under Master Netting Agreements with Derivative Counterparties


December 31, 2016			Gross Amounts not Offset in the
			Consolidated Balance Sheet that are Subject
	Gross Amount of		to Master Netting Agreements
	Derivative Liabilities		Gross Amount of
	Presented in the		Eligible Offsetting
	Consolidated		Recognized		Cash Collateral		Net Amount of
(Millions)	Balance Sheet		Derivative Assets		Pledged		Derivative Liabilities
Derivatives subject to master netting agreements	$	93	$	39	$	—	$	54
Derivatives not subject to master netting agreements		2						2
Total	$	95					$	56


December 31, 2015			Gross Amounts not Offset in the
			Consolidated Balance Sheet that are Subject
	Gross Amount of		to Master Netting Agreements
	Derivative Liabilities		Gross Amount of
	Presented in the		Eligible Offsetting
	Consolidated		Recognized		Cash Collateral		Net Amount of
(Millions)	Balance Sheet		Derivative Assets		Pledged		Derivative Liabilities
Derivatives subject to master netting agreements	$	64	$	37	$	—	$	27
Derivatives not subject to master netting agreements		5						5
Total	$	69					$	32