·
|
Financial instruments and transactions denominated in foreign currencies, which impact earnings; and
|
·
|
The translation of net assets in foreign subsidiaries for which the functional currency is not the U.S. dollar, which impacts our net equity.
|
Asset derivatives
|
Liability derivatives
|
||||||||||||||||||||
Notional amount
|
Balance sheet location
|
Fair value
|
Balance sheet location
|
Fair value
|
|||||||||||||||||
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
||||||||||||||||
Derivatives designated as hedging instruments
|
|||||||||||||||||||||
Foreign exchange contracts
|
$
|
433
|
$
|
719
|
Other current assets
|
$
|
8
|
$
|
57
|
Other accrued liabilities
|
$
|
(3)
|
$
|
(3)
|
|||||||
Interest rate contracts
|
$
|
550
|
$
|
550
|
Other liabilities
|
$
|
(28)
|
||||||||||||||
Derivatives not designated as hedging instruments
|
|||||||||||||||||||||
Foreign exchange contracts
|
$
|
804
|
$
|
1,939
|
Other current assets
|
$
|
20
|
$
|
109
|
Other accrued liabilities
|
$
|
(3)
|
$
|
(10)
|
|||||||
Translated earnings contracts
|
$
|
6,826
|
Other current assets
|
$
|
344
|
Other accrued liabilities
|
$
|
(3)
|
|||||||||||||
Other assets
|
$
|
90
|
Other liabilities
|
||||||||||||||||||
Total derivatives
|
$
|
8,613
|
$
|
3,208
|
$
|
462
|
$
|
166
|
$
|
(37)
|
$
|
(13)
|
Effect of derivative instruments on the consolidated financial statements for the years ended December 31
|
|||||||||||||||||||
Derivatives
in hedging
relationships
|
Gain/(loss) recognized in other
comprehensive income (OCI) (2)
|
Location of gain/(loss) reclassified from
accumulated OCI into income
effective/ineffective
|
Gain/(loss) reclassified from
accumulated OCI into income
ineffective/effective (1)
|
||||||||||||||||
2013
|
2012
|
2011
|
2013
|
2012
|
2011
|
||||||||||||||
Cash flow hedges
|
|||||||||||||||||||
Net sales
|
$
|
1
|
|||||||||||||||||
Interest rate hedge
|
$
|
33
|
$
|
15
|
$
|
(33)
|
Cost of sales
|
$
|
38
|
$
|
16
|
$
|
(12)
|
||||||
Foreign exchange contracts
|
$
|
56
|
$
|
85
|
$
|
(28)
|
Other income, net
|
$
|
91
|
$
|
11
|
$
|
(42)
|
||||||
Total cash flow hedges
|
$
|
89
|
$
|
100
|
$
|
(61)
|
$
|
129
|
$
|
28
|
$
|
(54)
|
Gain (loss) recognized in income (2)
|
|||||||||||
Undesignated
derivatives
|
Location
|
2013
|
2012
|
2011
|
|||||||
Foreign exchange contracts – balance sheet
|
Other income, net
|
$
|
100
|
$
|
82
|
$
|
137
|
||||
Foreign exchange contracts – loans
|
Other income, net
|
$
|
87
|
$
|
141
|
$
|
(252)
|
||||
Translated earnings contracts
|
Other income, net
|
$
|
435
|
||||||||
Total undesignated
|
$
|
622
|
$
|
223
|
$
|
(115)
|
(1)
|
The amount of hedge ineffectiveness for the year ended December 31, 2013 was $24 million related to interest rate swaps settled in the fourth quarter. The amount of ineffectiveness for 2012 and 2011 was insignificant.
|
(2)
|
Certain amounts for prior periods were reclassified to conform to the current presentation. The gain (loss) on foreign exchange contracts is now disclosed in two categories, Foreign exchange contracts – balance sheet, and Foreign exchange contracts – loans.
|