v3.24.2
FINANCIAL INSTRUMENTS (Tables)
 6 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Estimated Fair Value of Assets and Liabilities The following table provides information about assets and liabilities not carried at fair value and excludes finance leases, equity securities without readily determinable fair value and non-financial assets and liabilities. Substantially all of these assets are considered to be Level 3 and the vast majority of our liabilities’ fair value are considered Level 2.
June 30, 2024December 31, 2023
Carrying
amount
(net)		Estimated
fair value		Carrying
amount
(net)		Estimated
fair value
AssetsLoans and other receivables$2,071 $1,977 $2,110 $2,055 
LiabilitiesBorrowings (Note 10)19,673 18,949 20,525 20,218 
Investment contracts (Note 12)1,451 1,507 1,535 1,616 
Schedule of Fair Value of Derivative Assets
FAIR VALUE OF DERIVATIVESJune 30, 2024December 31, 2023
Gross NotionalAll other current assetsAll other current liabilitiesGross NotionalAll other current assetsAll other current liabilities
Qualifying currency exchange contracts
$1,287 $15 $12 $1,613 $26 $22 
Non-qualifying currency exchange contracts and other(a)6,842 208 17 16,277 245 56 
Gross derivatives$8,129 $223 $29 $17,890 $271 $78 
Netting and credit adjustments$(13)$(13)$(28)$(26)
Net derivatives recognized in statement of financial position$210 $16 $243 $53 
(a) Gains and (losses) included in our statement of earnings (loss) are $40 million and $46 million for the three months and $62 million and $179 million for the six months ended June 30, 2024 and 2023, respectively, primarily in SG&A, driven by hedges of deferred incentive compensation.
Schedule of Fair Value of Derivative Liabilities
FAIR VALUE OF DERIVATIVESJune 30, 2024December 31, 2023
Gross NotionalAll other current assetsAll other current liabilitiesGross NotionalAll other current assetsAll other current liabilities
Qualifying currency exchange contracts
$1,287 $15 $12 $1,613 $26 $22 
Non-qualifying currency exchange contracts and other(a)6,842 208 17 16,277 245 56 
Gross derivatives$8,129 $223 $29 $17,890 $271 $78 
Netting and credit adjustments$(13)$(13)$(28)$(26)
Net derivatives recognized in statement of financial position$210 $16 $243 $53 
(a) Gains and (losses) included in our statement of earnings (loss) are $40 million and $46 million for the three months and $62 million and $179 million for the six months ended June 30, 2024 and 2023, respectively, primarily in SG&A, driven by hedges of deferred incentive compensation.
Schedule of Effects of Derivatives on AOCI
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on DerivativesAmount of Gain (Loss) Reclassified from AOCI into Net Income
Three months and six months ended June 30Three months and six months ended June 30
20242023202420232024202320242023
Cash flow hedges(a)$(14)$19 $(21)$38 $5 $17 $12 $18 
Net investment hedges(b)68 (68)150 (133)— — — — 
(a) Primarily currency exchange contracts, and recognized in Costs of Equipment or Services Sold in the Statement of Earnings (Loss).
(b) The carrying value of foreign currency debt designated as net investment hedges was $4,588 million and $4,726 million at June 30, 2024 and December 31, 2023, respectively.