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Financial Instruments, Derivatives and Hedging Activities (Tables)
6 Months Ended
Jun. 30, 2020
Financial Instruments, Derivatives and Hedging Activities  
Schedule of cash flow hedges included in AOCI

​

​

​

​

​

​

​

​

​

Derivatives in Cash Flow Hedging Relationships

​

Gains (Losses) included in AOCI

​

(in millions)

​

June 30, 2020

​

December 31, 2019

​

Commodity contracts, net of income tax effect of $13 and $5, respectively

​

$

(36)

​

$

(11)

​

Foreign currency contracts, net of income tax effect of $ — and $1, respectively

​

​

—

​

​

3

​

Interest rate contracts, net of income tax effect of $1 and $ — , respectively

​

​

(4)

​

​

(1)

​

Total

​

$

(40)

​

$

(9)

​

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 fair value hedges

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Line item in the statement of financial position in which the hedged item is included (in millions)

​

Carrying Amount of the Hedged Assets/(Liabilities)

​

Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets/(Liabilities)

​

Balance sheet date as of

​

June 30, 2020

​

December 31, 2019

​

June 30, 2020

​

December 31, 2019

​

Interest Rate Contracts:

​

​

​

​

​

​

​

​

​

​

​

​

​

Long-Term Debt

​

$

—

​

$

(201)

​

$

—

​

$

(1)

​

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 location and amount of gain (loss) recognized in income

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Derivatives in Fair Value Hedging

Income Statement Location of

​

Gains (Losses) Recognized in Income

​

Income Statement

​

Gains (Losses) Recognized in Income

​

Relationships

Derivatives Designated as

​

Three Months Ended June 30, 

​

Location

​

Three Months Ended June 30, 

​

(in millions)

Hedging Instruments

​

2020

​

2019

​

of Hedged Items

​

2020

​

2019

​

Interest rate contracts

Financing costs, net

​

$

(4)

​

$

3

​

Financing costs, net

​

$

4

​

$

(3)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Derivatives in Fair Value

Income Statement Location of

​

Gains (Losses) Recognized in Income

​

Income Statement

​

Gains (Losses) Recognized in Income

​

Hedging Relationships

Derivatives Designated as

​

Six Months Ended June 30, 

​

Location

​

Six Months Ended June 30, 

​

(in millions)

Hedging Instruments

​

2020

​

2019

​

of Hedged Items

​

2020

​

2019

​

Interest rate contracts

Financing costs, net

​

$

(1)

​

$

3

​

Financing costs, net

​

$

1

​

$

(3)

​

​

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.