Financial Instruments, Derivatives and Hedging Activities

Schedule of location and amount of assets and liabilities reported in balance sheet


	Fair Value of Hedging Instruments as of June 30, 2020
	Designated Hedging Instruments (in millions)								Non-Designated Hedging Instruments (in millions)
Balance Sheet Location		Commodity Contracts		Foreign Currency Contracts		Interest Rate Contracts	Total			Commodity Contracts		Foreign Currency Contracts		Interest Rate Contracts	Total
Accounts receivable, net	$	3	$	—	$	—	$	3	$	—	$	5	$	—	$	5
Other assets		2		1		—		3		—		1		—		1
Assets		5		1		—		6		—		6		—		6
Accounts payable and accrued liabilities		26		2		—		28		4		16		—		20
Non-current liabilities		2		—		—		2		—		3		—		3
Liabilities		28		2		—		30		4		19		—		23
Net (Liabilities)/Assets	$	(23)	$	(1)	$	—	$	(24)	$	(4)	$	(13)	$	—	$	(17)


	Fair Value of Hedging Instruments as of December 31, 2019
	Designated Hedging Instruments (in millions)								Non-Designated Hedging Instruments (in millions)
Balance Sheet Location		Commodity Contracts		Foreign Currency Contracts		Interest Rate Contracts	Total			Commodity Contracts		Foreign Currency Contracts		Interest Rate Contracts	Total
Accounts receivable, net	$	5	$	7	$	—	$	12	$	2	$	4	$	—	$	6
Other assets		1		3		1		5		—		1		—		1
Assets		6		10		1		17		2		5		—		7
Accounts payable and accrued liabilities		13		4		—		17		1		8		—		9
Non-current liabilities		4		4		—		8		—		2		—		2
Liabilities		17		8		—		25		1		10		—		11
Net (Liabilities)/Assets	$	(11)	$	2	$	1	$	(8)	$	1	$	(5)	$	—	$	(4)

Schedule of amount of gains and losses recognized in OCI and location and income statement location


Derivatives in Cash Flow	Gains (Losses) Recognized in OCI on Derivatives				Income	Gains (Losses) Reclassified from AOCI into Income
Hedging Relationships	Three Months Ended June 30,				Statement	Three Months Ended June 30,
(in millions)	2020		2019		Location	2020		2019
Commodity contracts	$	(20)	$	10	Cost of sales	$	(17)	$	(5)
Foreign currency contracts		1		3	Net sales/Cost of sales		(1)		1
Interest rate contracts		(1)		—	Financing costs, net		(1)		—
Total	$	(20)	$	13		$	(19)	$	(4)


Derivatives in Cash-Flow	Gains (Losses) Recognized in OCI on Derivatives				Income	Gains (Losses) Reclassified from AOCI into Income
Hedging Relationships	Six Months Ended June 30,				Statement	Six Months Ended June 30,
(in millions, pre-tax)	2020		2019		Location	2020		2019
Commodity contracts	$	(57)	$	—	Cost of sales	$	(24)	$	(3)
Foreign currency contracts		(4)		1	Net sales/Cost of sales		—		(2)
Interest rate contracts		(5)		—	Financing costs, net		(1)		(1)
Total	$	(66)	$	1		$	(25)	$	(6)

Schedule of fair value of financial instruments and derivatives


	As of June 30, 2020								As of December 31, 2019
(in millions)	Total		Level 1 (a)		Level 2 (b)		Level 3 (c)		Total		Level 1 (a)		Level 2 (b)		Level 3 (c)
Available for sale securities	$	10	$	10	$	—	$	—	$	13	$	13	$	—	$	—
Derivative assets		12		2		10		—		24		7		17		—
Derivative liabilities		53		21		32		—		36		5		31		—
Long-term debt		2,215		—		2,215		—		1,751		—		1,751		—

(a)

Level 1 inputs consist of quoted prices (unadjusted) in active markets for identical assets or liabilities.

(b)

Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 2 inputs are based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability or can be derived principally from or corroborated by observable market data.

(c)

Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.