Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2021

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 sheets at June 30, 2021 and December 31, 2020, as follows (in millions):

		June 30, 2021		December 31, 2020
Derivatives designated as	Balance Sheet Location	Fair Value
Cash flow hedging contracts	Other current and noncurrent liabilities	$	67	107

Derivative Instruments, Gain (Loss)

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

Derivatives designated as hedging instruments	2021		2020
Cash flow hedging contracts
Three Months Ended June 30,	$	—	10
Six Months Ended June 30,	$	—	116

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	2021		2020
Cash flow hedging contracts
Three Months Ended June 30,	$	21	16
Six Months Ended June 30,	$	41	21

The tables below present further information about our reclassifications out of accumulated other comprehensive loss by component for the three and six months ended June 30, 2021:

Three Months Ended June 30, 2021	Decrease (Increase) in Net Income		Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Interest rate swaps	$	21	Interest expense
Income tax benefit	(5)		Income tax expense
Net of tax	$	16
Amortization of pension & post-retirement plans(1)
Net actuarial loss	$	50	Other income (expense), net
Prior service cost	1		Other income (expense), net
Total before tax	51
Income tax benefit	(12)		Income tax expense
Net of tax	$	39

Six Months Ended June 30, 2021	Decrease (Increase) in Net Income		Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Interest rate swaps	$	41	Interest expense
Income tax benefit	(10)		Income tax expense
Net of tax	$	31
Amortization of pension & post-retirement plans(1)
Net actuarial loss	$	100	Other income (expense), net
Prior service cost	3		Other income (expense), net
Total before tax	103
Income tax benefit	(25)		Income tax expense
Net of tax	$	78

(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 six months ended June 30, 2020:

Three Months Ended June 30, 2020	Decrease (Increase) in Net Income		Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Interest rate swaps	$	16	Interest expense
Income tax expense	(5)		Income tax expense
Net of tax	$	11
Amortization of pension & post-retirement plans(1)
Net actuarial loss	$	52	Other income (expense), net
Prior service cost	3		Other income (expense), net
Total before tax	55
Income tax benefit	(14)		Income tax expense
Net of tax	$	41

Six Months Ended June 30, 2020	Decrease (Increase) in Net Income		Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Interest rate swaps	$	21	Interest expense
Income tax expense	(5)		Income tax expense
Net of tax	$	16
Amortization of pension & post-retirement plans(1)
Net actuarial loss	$	102	Other income (expense), net
Prior service cost	4		Other income (expense), net
Total before tax	106
Income tax benefit	(26)		Income tax expense
Net of tax	$	80

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