Financial Instruments

3 Months Ended

Mar. 31, 2022

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Financial Instruments

Note 9. Financial Instruments

We had the following derivative instruments recorded at fair value in our condensed consolidated balance sheets:

	As of March 31, 2022				As of December 31, 2021
	Asset Derivatives		Liability Derivatives		Asset Derivatives		Liability Derivatives
Commodity swap contracts	$	5	$	—	$	1	$	(1	)
Total fair value	$	5	$	—	$	1	$	(1	)
Recorded in:
Other current assets	$	5	$	—	$	1	$	—
Accrued and other current liabilities		—		—		—		(1	)
Total fair value	$	5	$	—	$	1	$	(1	)

Our derivatives are comprised of commodity swaps. All derivatives represent Level 2 financial assets and liabilities. Our derivatives are valued using an income approach based on the observable market index prices less the contract rate multiplied by the notional amount or based on pricing models that rely on market observable inputs such as commodity prices. Our calculation of the fair value of these financial instruments takes into consideration the risk of non-performance, including counterparty credit risk. The majority of our derivative contracts do not have a legal right of set-off. We manage the credit risk in connection with our derivatives by limiting the amount of exposure with each counterparty and monitoring the financial condition of our counterparties.

During the three months ended March 31, 2022 and 2021, we recognized an unrealized gain of $5 million and an unrealized loss of $1 million, respectively, in cost of sales.

The following table provides the detail of outstanding commodity derivative contracts as of March 31, 2022:

Type	Unit of Measure	Contracted Volume		Contracted Price Range	Contracted Date of Maturity
Benzene swaps	U.S. liquid gallon		5,518,856	$3.12 - $4.05	May 2022 - Dec 2022
Natural gas swaps	Million BTU		224,024	$2.81 - $2.81	May 2022 - Sep 2022