Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2022

Balance Sheet Classification of derivative instruments


	Fair Value of						Fair Value of
	Hedge Assets						Hedge Liabilities
	September 30,		December 31,		September 30,		September 30,		December 31,		September 30,
	2022		2021		2021		2022		2021		2021
Derivatives designated as hedging instruments:
Commodity forward contracts and collars (a)	$	3	$	—	$	—	$	2	$	—	$	—
Interest rate swaps - fair value hedges (b)				4		9		39		2		1
Cash flow hedges of foreign exchange risk (c)				2		9		1		23		54
Fair value hedges of foreign exchange risk (d)		68		9
Net investment hedges (e)		36		3		2				17		28
Total derivatives accounted for as hedges	$	107	$	18	$	20	$	42	$	42	$	83
Derivatives not designated as hedges:
Foreign exchange derivative contracts (f)		2		1		1		17		2		4
Total derivatives	$	109	$	19	$	21	$	59	$	44	$	87


Current	$	25	$	14	$	15	$	31	$	2	$	4
Noncurrent		84		5		6		28		42		83
Total derivatives	$	109	$	19	$	21	$	59	$	44	$	87

(a) The notional amount of the commodity forward contracts and collars was approximately 44 million British Thermal Units (“BTUs”) at September 30, 2022. The maximum maturity dates are in 2027 at September 30, 2022.

(b) The notional amounts of the interest rate swaps designated as fair value hedges were €725 million at September 30, 2022, December 31, 2021 and September 30, 2021. The maximum maturity dates are in 2024 at September 30, 2022, December 31, 2021 and September 30, 2021.

(c) The notional amounts of the cash flow hedges of foreign exchange risk were 259 million Mexican pesos at September 30, 2022, $422 million at December 31, 2021 and $878 million at September 30, 2021. The maximum maturity dates are in 2022 at September 30, 2022 and are in 2023 at December 31, 2021 and September 30, 2021.

(d) The notional amounts of the fair value hedges of foreign exchange risk were $850 million at September 30, 2022 and $400 million at December 31, 2021. The maximum maturity dates are in 2030 at September 30, 2022 and December 31, 2021.

(e) The notional amounts of the net investment hedges were €324 million at September 30, 2022 and €311 million at December 31, 2021 and September 30, 2021. The maximum maturity dates are in 2026 for September 30, 2022, 2027 for December 31, 2021 and 2027 for September 30, 2021.

(f) The notional amounts of the foreign exchange derivative contracts were $448 million, $202 million and $291 million at September 30, 2022, December 31, 2021 and September 30, 2021, respectively. The maximum maturity dates are in 2023 for September 30, 2022 and in 2022 for December 31, 2021 and September 30, 2021.

Effects of derivative instruments on the results of operations


	Gain (Loss) Recognized in OCI (Effective Portion)				Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (1)
	Three months ended September 30,				Three months ended September 30,
Derivatives designated as hedging instruments:	2022		2021		2022		2021
Cash Flow Hedges
Commodity forward contracts and collars(a)	$	7	$	—	$	4	$	—
Cash flow hedges of foreign exchange risk (b)				24				24
Net Investment Hedges
Net Investment Hedges (c)		23		14		2		1
	$	30	$	38	$	6	$	25


	Gain (Loss) Recognized in OCI (Effective Portion)				Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (1)
	Nine months ended September 30,				Nine months ended September 30,
Derivatives designated as hedging instruments:	2022		2021		2022		2021
Cash Flow Hedges
Commodity forward contracts and collars (a)	$	4	$	—	$	6	$	—
Cash flow hedges of foreign exchange risk (b)		13		56		14		57
Net Investment Hedges
Net Investment Hedges (c)		55		29		5		2
	$	72	$	85	$	25	$	59


	Amount of Gain (Loss) Recognized in Other income (expense), net					Amount of Gain (Loss) Recognized in Other income (expense), net
	Three months ended September 30,					Nine months ended September 30,
Derivatives not designated as hedges:	2022		2021			2022		2021
Foreign exchange derivative contracts	$	(16)	$	2	$	(32)	$	9

(1) Gains and losses reclassified from Accumulated OCI and recognized in income are recorded to (a) cost of goods sold, (b) other income (expense), net or (c) interest expense, net.