Deferred, net after-tax gains on derivative instruments

  
$173 million in cash payments. The losses relating to these terminations continue to be deferred and are being recognized consistent with the underlying hedged item, interest expense on the issuance of debt.If we terminate a fair value hedge, an amount equal to the cumulative fair value adjustment to the hedged item at the date of termination is amortized to earnings over the remaining term of the hedged item. There were no fair value hedges terminated in 2021, 2020 or 2019. If we remove a net investment hedge designation, any gain or loss recognized in AOCI is not reclassified to earnings until we sell, liquidate, or deconsolidate the foreign investments that were being hedged. In 2019, we dedesignated €1.2 billion of forward contracts designated as a net investment hedge of our European operations. There were no net investment hedges terminated in 2021 or 2020.Undesignated Derivative InstrumentsWe use forward contracts to hedge earnings from the effects of foreign exchange relating to certain of our intra-company and third-party receivables and payables denominated in a foreign currency. These derivative instruments are generally not formally designated as hedges and the terms of these instruments generally do not exceed one month.The total notional amount of undesignated derivative instruments was $851 million and $1.0 billion as of December 31, 2021 and 2020, respectively.Gains and Losses on Hedging Instruments and Undesignated Derivative InstrumentsThe following tables summarize the gains and losses on our hedging instruments and the classification of those gains and losses within our consolidated financial statements for the years ended December 31, 2021, 2020, and 2019.

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| (in millions) | Gain (loss)recognized in OCI | Location of gain(loss) inincome statement | Gain (loss) reclassified fromAOCI into income |
| 2021 | 2020 | 2019 | 2021 | 2020 | 2019 |
| Cash flow hedges |  |  |  |  |  |  |  |
| Interest rate contracts | $ | —  |  | $ | (131) |  | $ | (37) |  | Interest expense, net | $ | (6) |  | $ | (1) |  | $ | —  |  |
| Foreign exchange contracts | 5  |  | (21) |  | (9) |  | Cost of sales | (23) |  | (5) |  | 4  |  |
| Net investment hedges | 200  |  | (224) |  | 12  |  | Other expense, net | —  |  | —  |  | —  |  |
| Total | $ | 205  |  | $ | (376) |  | $ | (34) |  |  | $ | (29) |  | $ | (6) |  | $ | 4  |  |



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|  | Location of gain (loss) inincome statement |  | Gain (loss) recognizedin income |
| (in millions) |  |  | 2021 | 2020 | 2019 |
|  |  |  |  |  |  |
|  |  |  |  |  |  |
| Undesignated derivative instruments |  |  |  |  |  |
| Foreign exchange contracts | Other expense, net |  | $ | (36) |  | $ | 49  |  | $ | 17  |  |

The following table summarizes net-of-tax activity in AOCI, a component of stockholders’ equity, related to our cash flow hedges. 

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|  |  |  |  |  |  |  |  |  |  |  |  |
| as of and for the year ended December 31 (in millions) | 2021 | 2020 | 2019 |
| Accumulated other comprehensive income (loss) balance at beginning of year | $ | (153) |  | $ | (41) |  | $ | (1) |  |
| Adoption of new accounting standard | —  |  | —  |  | (1) |  |
| (Loss) gain in fair value of derivatives during the year | 4  |  | (117) |  | (36) |  |
| Amount reclassified to earnings during the year | 23  |  | 5  |  | (3) |  |
| Accumulated other comprehensive income (loss) balance at end of year | $ | (126) |  | $ | (153) |  | $ | (41) |  |

As of December 31, 2021, $2 million of deferred, net after-tax losses on derivative instruments included in AOCI are expected to be recognized in earnings during the next 12 months, coinciding with when the hedged items are expected to impact earnings.99
