Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments

Balance Sheet Classification of derivative instruments

	Fair Value of
	Hedge Assets				Hedge Liabilities
	2022		2021		2022		2021
Derivatives designated as hedging instruments:
Commodity forward contracts and collars (a)	$	3	$	—	$	9	$	—
Interest rate swaps - fair value hedges (b)				4		44		2
Cash flow hedges of foreign exchange risk (c)				2				23
Fair value hedges of foreign exchange risk (d)		7		9		62
Net investment hedges (e)		3		3		28		17
Total derivatives accounted for as hedges	$	13	$	18	$	143	$	42
Derivatives not designated as hedges:
Foreign exchange derivative contracts (f)		5		1		2		2
Total derivatives	$	18	$	19	$	145	$	44
Current	$	15	$	14	$	32	$	2
Noncurrent		3		5		113		42
Total derivatives	$	18	$	19	$	145	$	44

(a) The notional amount of the commodity forward contracts and collars was approximately 46 million British Thermal Units (“BTUs”) at December 31, 2022. The maximum maturity dates are in 2027 at December 31, 2022.

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

(c) The notional amounts of the cash flow hedges of foreign exchange risk were $0 and $422 million at December 31, 2022 and December 31, 2021, respectively. The maximum maturity dates are in 2023 at December 31, 2021.

(d) The notional amounts of the fair value hedges of foreign exchange risk were $844 million and $400 million at December 31, 2022 and December 31, 2021, respectively. The maximum maturity dates were in 2030 at December 31, 2022.

(e) The notional amounts of the net investment hedges were €358 million and €311 million at December 31, 2022 and December 31, 2021, respectively. The maximum maturity dates are in 2026 at December 31, 2022 and 2027 at December 31, 2021.

(f) The notional amounts of the foreign exchange derivative contracts were $245 million and $202 million at December 31, 2022 and December 31, 2021, respectively. The maximum maturity dates are in 2023 at December 31, 2022 and 2022 at December 31, 2022.

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)
Derivatives designated as hedging instruments:	2022		2021		2020		2022		2021		2020
Cash Flow Hedges
Commodity forward contracts and collars (a)	$	(1)	$		$		$	6	$		$
Cash flow hedges of foreign exchange risk (b)		14		75		(99)		15		77		(115)
Cash flow hedges of interest rate risk (c)												(1)
Net Investment Hedges
Net Investment Hedges		30		40		(54)		6		3		4
	$	43	$	115	$	(153)	$	27	$	80	$	(112)
	Amount of Gain (Loss) Recognized in Other income (expense), net
Derivatives not designated as hedges:	2022		2021		2020
Foreign exchange derivative contracts	$	(20)	$	4	$	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.