Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis for Continuing Operations

The tables below present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis for the continuing operations as of December 31, 2021 and December 31, 2020. The carrying value is the same as the fair value as these instruments are recognized in the consolidated financial statements at fair value. Although the Company is party to close-out netting agreements (ISDA agreements) with all derivative counterparties, the fair values in the tables below and in the Consolidated Balance Sheets at December 31, 2021 and December 31, 2020 have been presented on a gross basis. According to the close-out netting agreements, transaction amounts payable to a counterparty on the same date and in the same currency can be netted. The amounts subject to netting agreements that the Company choose not to offset are presented below.

DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS

There were no derivatives designated as hedging instruments as of December 31, 2021 and December 31, 2020 related to the continuing operations.

DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS

Derivatives not designated as hedging instruments, relate to economic hedges and are marked to market with all amounts recognized in the Consolidated Statements of Income. The derivatives not designated as hedging instruments outstanding at December 31, 2021 and December 31, 2020 were foreign exchange swaps.

For 2021, the gains and losses recognized in other non-operating items, net are a loss of $33 million for derivative instruments not designated as hedging instruments. For 2020, the Company recognized a gain of $19 million in other non-operating items, net for derivative instruments not designated as hedging instruments. For 2019, the Company recognized a gain of $4 million in other non-operating items, net for derivative instruments not designated as hedging instruments. The realized part of the losses referred to above are reported under financing activities in the statement of cash flows. For 2021, 2020 and 2019, the gains and losses recognized as interest expense were immaterial.

	DECEMBER 31, 2021									DECEMBER 31, 2020
				Fair Value Measurements									Fair Value Measurements
				Derivative asset			Derivative liability						Derivative asset			Derivative liability
	Nominal			(Other current			(Other current			Nominal			(Other current			(Other current
(Dollars in millions)	volume			assets)			liabilities)			volume			assets)			liabilities)
DERIVATIVES NOT DESIGNATED    AS HEDGING INSTRUMENTS
Foreign exchange swaps, less    than 6 months	$	1,348	1)	$	5	2)	$	16	3)	$	1,463	4)	$	25	5)	$	3	6)
TOTAL DERIVATIVES NOT    DESIGNATED AS HEDGING    INSTRUMENTS	$	1,348		$	5		$	16		$	1,463		$	25		$	3

1) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $1,326 million.

2) Net amount after deducting for offsetting swaps under ISDA agreements is $5 million.

3) Net amount after deducting for offsetting swaps under ISDA agreements is $16 million.

4) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $1,463 million.

5) Net amount after deducting for offsetting swaps under ISDA agreements is $25 million.

6) Net amount after deducting for offsetting swaps under ISDA agreements is $3 million.

Fair Value of Debt

The fair value and carrying value of debt for the continuing operations are summarized in the table below (dollars in millions).

	DECEMBER 31, 2021				DECEMBER 31, 2020
	CARRYING VALUE1)		FAIR VALUE		CARRYING VALUE1)		FAIR VALUE
LONG-TERM DEBT
Bonds	$	1,330	$	1,400	$	1,377	$	1,483
Loans		332		347		733		753
Other long-term debt		—		—		1		1
TOTAL	$	1,662	$	1,747	$	2,110	$	2,237
SHORT-TERM DEBT
Short-term portion of long-term debt		332		333		275		279
Overdrafts and other short-term debt		14		14		27		27
TOTAL	$	346	$	348	$	302	$	305

1) Debt as reported in balance sheet.