Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 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 September 30, 2021 and December 31, 2020, as follows (in millions):

		September 30, 2021		December 31, 2020
Derivatives designated as	Balance Sheet Location	Fair Value
Cash flow hedging contracts	Other current and noncurrent liabilities	$	47	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 September 30,	$	1	(1)
Nine Months Ended September 30,	$	1	115

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 September 30,	$	21	20
Nine Months Ended September 30,	$	62	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, 2021:

Three Months Ended September 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	$	108	Other (expense) income, net
Prior service cost	1		Other (expense) income, net
Total before tax	109
Income tax benefit	(27)		Income tax expense
Net of tax	$	82

Nine Months Ended September 30, 2021	Decrease (Increase) in Net Income		Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Interest rate swaps	$	62	Interest expense
Income tax benefit	(15)		Income tax expense
Net of tax	$	47
Amortization of pension & post-retirement plans(1)
Net actuarial loss	$	208	Other (expense) income, net
Prior service cost	4		Other (expense) income, net
Total before tax	212
Income tax benefit	(52)		Income tax expense
Net of tax	$	160

(1)See Note 10—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 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 (expense) income, net
Prior service cost	1		Other (expense) income, net
Curtailment loss	4		Other (expense) income, net
Total before tax	55
Income tax benefit	(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 (expense) income, net
Prior service cost	5		Other (expense) income, net
Curtailment loss	4		Other (expense) income, net
Total before tax	161
Income tax benefit	(39)		Income tax expense
Net of tax	$	122

(1)See Note 10—Employee Benefits for additional information on our net periodic benefit (expense) income related to our pension and post-retirement plans.