Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The table below presents the fair value of our derivative financial instruments as well as their classification on the consolidated balance sheet at September 30, 2020 and December 31, 2019, as follows (in millions):

		September 30, 2020		December 31, 2019
Derivatives designated as	Balance Sheet Location	Fair Value
Cash flow hedging contracts	Other current and noncurrent liabilities	$	127	51

Derivative Instruments, Gain (Loss)

The amount of unrealized (gains) losses recognized in AOCI consists of the following (in millions):

Derivatives designated as hedging instruments	2020		2019
Cash flow hedging contracts
Three Months Ended September 30,	$	(1)	14
Nine Months Ended September 30,	$	115	71

Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) by Component

The amount of realized losses reclassified from AOCI to the statement of operations consists of the following (in millions):

Derivatives designated as hedging instruments	2020		2019
Cash flow hedging contracts
Three Months Ended September 30,	$	20	—
Nine Months Ended September 30,	$	41	—

The tables below present further information about our reclassifications out of accumulated other comprehensive loss by component for the three and nine months ended September 30, 2020:

Three Months Ended September 30, 2020	Decrease (Increase) in Net Income		Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Interest rate swaps	$	20	Interest expense
Income tax expense	(5)		Income tax expense
Net of tax	$	15
Amortization of pension & post-retirement plans(1)
Net actuarial loss	$	50	Other income (loss), net
Prior service cost	1		Other income (loss), net
Curtailment loss	4		Other income (loss), net
Total before tax	55
Income tax expense	(13)		Income tax expense
Net of tax	$	42

Nine Months Ended September 30, 2020	Decrease (Increase) in Net Income		Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Interest rate swaps	$	41	Interest expense
Income tax expense	(10)		Income tax expense
Net of tax	$	31
Amortization of pension & post-retirement plans (1)
Net actuarial loss	$	152	Other income (loss), net
Prior service cost	5		Other income (loss), net
Curtailment loss	4		Other income (loss), net
Total before tax	161
Income tax expense	(39)		Income tax expense
Net of tax	$	122

(1)See Note 7—Employee Benefits for additional information on our net periodic benefit (income) expense related to our pension and post-retirement plans.

The tables below present further information about our reclassifications out of accumulated other comprehensive loss by component for the three and nine months ended September 30, 2019

Three Months Ended September 30, 2019	Decrease (Increase) in Net Income		Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Amortization of pension & post-retirement plans(1)
Net actuarial loss	$	54	Other income, net
Prior service cost	3		Other income, net
Total before tax	57
Income tax benefit	(14)		Income tax expense
Net of tax	$	43

Nine Months Ended September 30, 2019	Decrease (Increase) in Net Income		Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Amortization of pension & post-retirement plans (1)
Net actuarial loss	$	167	Other income, net
Prior service cost	7		Other income, net
Total before tax	174
Income tax benefit	(43)		Income tax expense
Net of tax	$	131

(1)See Note 7—Employee Benefits for additional information on our net periodic benefit (income) expense related to our pension and post-retirement plans.