Amounts expected to be reclassified from AOCI into earnings over the next 12 months, foreign currency and cross-currency swaps

  
Impact of hedging transactionsThe following tables summarize the amounts recorded in income and expense line items and the effects thereon from fair value and cash flow hedging, including discontinued hedging relationships (in millions):

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Year ended December 31, 2021 |
|  |  | Product sales |  | Other income, net |  | Interest expense, net |
| Total amounts recorded in income and (expense) line items presented in the Consolidated Statements of Income |  | $ | 24,297  |  |  | $ | 259  |  |  | $ | (1,197) |  |
| The effects of cash flow and fair value hedging: |  |  |  |  |  |  |
| Losses on cash flow hedging relationships reclassified out of AOCI: |  |  |  |  |  |  |
| Foreign currency contracts |  | $ | (8) |  |  | $ | —  |  |  | $ | —  |  |
| Cross-currency swap contracts |  | $ | —  |  |  | $ | (245) |  |  | $ | —  |  |
| Gains (losses) on fair value hedging relationships—interest rate swap agreements: |  |  |  |  |  |  |
| Hedged items(1) |  | $ | —  |  |  | $ | —  |  |  | $ | 281  |  |
| Derivatives designated as hedging instruments |  | $ | —  |  |  | $ | —  |  |  | $ | (192) |  |



|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Year ended December 31, 2020 |
|  |  | Product sales |  | Other income, net |  | Interest expense, net |
| Total amounts recorded in income and (expense) line items presented in the Consolidated Statements of Income |  | $ | 24,240  |  |  | $ | 256  |  |  | $ | (1,262) |  |
| The effects of cash flow and fair value hedging: |  |  |  |  |  |  |
| Gains on cash flow hedging relationships reclassified out of AOCI: |  |  |  |  |  |  |
| Foreign currency contracts |  | $ | 178  |  |  | $ | —  |  |  | $ | —  |  |
| Cross-currency swap contracts |  | $ | —  |  |  | $ | 323  |  |  | $ | —  |  |
| Gains (losses) on fair value hedging relationships—interest rate swap agreements: |  |  |  |  |  |  |
| Hedged items(1) |  | $ | —  |  |  | $ | —  |  |  | $ | 315  |  |
| Derivatives designated as hedging instruments |  | $ | —  |  |  | $ | —  |  |  | $ | (204) |  |



|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Year ended December 31, 2019 |
|  |  | Product sales |  | Other income, net |  | Interest expense, net |
| Total amounts recorded in income and (expense) line items presented in the Consolidated Statements of Income |  | $ | 22,204  |  |  | $ | 753  |  |  | $ | (1,289) |  |
| The effects of cash flow and fair value hedging: |  |  |  |  |  |  |
| Gains on cash flow hedging relationships reclassified out of AOCI: |  |  |  |  |  |  |
| Foreign currency contracts |  | $ | 101  |  |  | $ | —  |  |  | $ | —  |  |
| Cross-currency swap contracts |  | $ | —  |  |  | $ | 110  |  |  | $ | —  |  |
|  |  |  |  |  |  |  |
| (Losses) gains on fair value hedging relationships—interest rate swap agreements: |  |  |  |  |  |  |
| Hedged items(1) |  | $ | —  |  |  | $ | —  |  |  | $ | (349) |  |
| Derivatives designated as hedging instruments |  | $ | —  |  |  | $ | —  |  |  | $ | 352  |  |

\_\_\_\_\_\_\_\_\_\_(1)    Gains on hedged items do not completely offset losses on the related designated hedging instruments due to amortization of the cumulative amounts of fair value hedging adjustments included in the carrying amount of the hedged debt for discontinued hedging relationships and the recognition of gains on terminated hedges when the corresponding hedged item was paid down in the period. No portions of our cash flow hedge contracts were excluded from the assessment of hedge effectiveness. As of December 31, 2021, we expected to reclassify $19 million of net gains on our foreign currency and cross-currency swap contracts out of AOCI and into earnings during the next 12 months. F-44
