Quarterly report pursuant to Section 13 or 15(d)

Derivative Financial Instruments (Tables)

v3.23.3
Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2023
Derivative [Line Items]  
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]
Total gross notional amounts for outstanding derivatives (recorded at fair value) at the end of each period were as follows: 
(In Millions)
 Sep 30, 2023 Dec 31, 2022
Foreign currency contracts
 $ 31,291  $ 31,603 
Interest rate contracts
 17,920  16,011 
Other
 2,103  2,094 
Total $ 51,314  $ 49,708 
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets
 
 Sep 30, 2023 Dec 31, 2022
(In Millions)
Assets1
Liabilities2
Assets1
Liabilities2
Derivatives designated as hedging instruments:
Foreign currency contracts3
$ 27  $ 643  $ 142  $ 290 
Interest rate contracts
 —  966  —  777 
Total derivatives designated as hedging instruments
 $ 27  $ 1,609  $ 142  $ 1,067 
Derivatives not designated as hedging instruments:
Foreign currency contracts3
$ 601  $ 102  $ 866  $ 194 
Interest rate contracts
 386  4  266  12 
Equity contracts
 131  17  —  111 
Total derivatives not designated as hedging instruments $ 1,118  $ 123  $ 1,132  $ 317 
Total derivatives $ 1,145  $ 1,732  $ 1,274  $ 1,384 
1Derivative assets are recorded as other assets, current and long-term.
2Derivative liabilities are recorded as other liabilities, current and long-term.
3A majority of these instruments mature within 12 months.
The amounts recorded on the Consolidated Condensed Balance Sheets related to cumulative basis adjustments for fair value hedges for each period were as follows:
Line Item in the Consolidated Condensed Balance Sheets in Which the Hedged Item is Included Carrying Amount of the Hedged Item Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount Assets/(Liabilities)
(In Millions)
 Sep 30, 2023 Dec 31, 2022 Sep 30, 2023 Dec 31, 2022
Long-term debt $ (11,032) $ (11,221) $ 965  $ 776 
Offsetting Assets [Table Text Block]
Agreements subject to master netting arrangements with various counterparties, and cash and non-cash collateral posted under such agreements at the end of each period were as follows:
Sep 30, 2023
Gross Amounts Not Offset in the Balance Sheet
(In Millions)
Gross Amounts Recognized
Gross Amounts Offset in the Balance Sheet
Net Amounts Presented in the Balance Sheet
 Financial Instruments Cash and Non-Cash Collateral Received or Pledged Net Amount
Assets:
Derivative assets subject to master netting arrangements $ 1,011  $ —  $ 1,011  $ (538) $ (473) $ — 
Reverse repurchase agreements
 2,334  —  2,334  —  (2,334) — 
Total assets $ 3,345  $ —  $ 3,345  $ (538) $ (2,807) $ — 
Liabilities:
Derivative liabilities subject to master netting arrangements $ 1,724  $ —  $ 1,724  $ (538) $ (1,085) $ 101 
Total liabilities $ 1,724  $ —  $ 1,724  $ (538) $ (1,085) $ 101 
Dec 31, 2022
Gross Amounts Not Offset in the Balance Sheet
(In Millions) Gross Amounts Recognized Gross Amounts Offset in the Balance Sheet Net Amounts Presented in the Balance Sheet Financial Instruments Cash and Non-Cash Collateral Received or Pledged Net Amount
Assets:
Derivative assets subject to master netting arrangements $ 1,231  $ —  $ 1,231  $ (546) $ (682) $ 3 
Reverse repurchase agreements 1,701  —  1,701  —  (1,701) — 
Total assets $ 2,932  $ —  $ 2,932  $ (546) $ (2,383) $ 3 
Liabilities:
Derivative liabilities subject to master netting arrangements $ 1,337  $ —  $ 1,337  $ (546) $ (712) $ 79 
Total liabilities $ 1,337  $ —  $ 1,337  $ (546) $ (712) $ 79 
Offsetting Liabilities [Table Text Block]
Agreements subject to master netting arrangements with various counterparties, and cash and non-cash collateral posted under such agreements at the end of each period were as follows:
Sep 30, 2023
Gross Amounts Not Offset in the Balance Sheet
(In Millions)
Gross Amounts Recognized
Gross Amounts Offset in the Balance Sheet
Net Amounts Presented in the Balance Sheet
 Financial Instruments Cash and Non-Cash Collateral Received or Pledged Net Amount
Assets:
Derivative assets subject to master netting arrangements $ 1,011  $ —  $ 1,011  $ (538) $ (473) $ — 
Reverse repurchase agreements
 2,334  —  2,334  —  (2,334) — 
Total assets $ 3,345  $ —  $ 3,345  $ (538) $ (2,807) $ — 
Liabilities:
Derivative liabilities subject to master netting arrangements $ 1,724  $ —  $ 1,724  $ (538) $ (1,085) $ 101 
Total liabilities $ 1,724  $ —  $ 1,724  $ (538) $ (1,085) $ 101 
Dec 31, 2022
Gross Amounts Not Offset in the Balance Sheet
(In Millions) Gross Amounts Recognized Gross Amounts Offset in the Balance Sheet Net Amounts Presented in the Balance Sheet Financial Instruments Cash and Non-Cash Collateral Received or Pledged Net Amount
Assets:
Derivative assets subject to master netting arrangements $ 1,231  $ —  $ 1,231  $ (546) $ (682) $ 3 
Reverse repurchase agreements 1,701  —  1,701  —  (1,701) — 
Total assets $ 2,932  $ —  $ 2,932  $ (546) $ (2,383) $ 3 
Liabilities:
Derivative liabilities subject to master netting arrangements $ 1,337  $ —  $ 1,337  $ (546) $ (712) $ 79 
Total liabilities $ 1,337  $ —  $ 1,337  $ (546) $ (712) $ 79 
Not Designated as Hedging Instrument [Member]  
Derivative [Line Items]  
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]
The effects of derivative instruments not designated as hedging instruments on the Consolidated Condensed Statements of Income for each period were as follows:
 
 Three Months Ended Nine Months Ended
(In Millions)
 Location of Gains (Losses)
Recognized in Income on Derivatives		 Sep 30, 2023 Oct 1, 2022 Sep 30, 2023 Oct 1, 2022
Foreign currency contracts
Interest and other, net
 $ 255  $ 771  $ 467  $ 1,952 
Interest rate contracts
Interest and other, net
 85  164  175  289 
Other
Various
 (112) (97) 103  (562)
Total $ 228  $ 838  $ 745  $ 1,679 
Interest and other, net [Member] | Fair Value Hedging  
Derivative [Line Items]  
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] The effects of derivative instruments designated as fair value hedges, recognized in interest and other, net for each period were as follows:
Gains (Losses) on Derivatives Recognized in Consolidated Condensed Statements of Income
Three Months Ended Nine Months Ended
(In Millions)
 Sep 30, 2023 Oct 1, 2022 Sep 30, 2023 Oct 1, 2022
Interest rate contracts
 $ (168) $ (589) $ (189) $ (1,536)
Hedged items
 168  589  189  1,536 
Total $ —  $ —  $ —  $ —