Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments

Balance Sheet Classification of derivative instruments

	Fair Value of						Fair Value of
	Hedge Assets						Hedge Liabilities
	June 30,		December 31,		June 30,		June 30,		December 31,		June 30,
	2023		2022		2022		2023		2022		2022
Derivatives designated as hedging instruments:
Commodity forward contracts and collars (a)	$	—	$	3	$	2	$	18	$	9	$	6
Interest rate swaps - fair value hedges (b)										44		28
Cash flow hedges of foreign exchange risk (c)								3				1
Fair value hedges of foreign exchange risk (d)		17		7		17		98		62		2
Net investment hedges (e)		8		3		16		45		28
Total derivatives accounted for as hedges	$	25	$	13	$	35	$	164	$	143	$	37
Derivatives not designated as hedges:
Foreign exchange derivative contracts (f)		1		5		2		7		2		—
Total derivatives	$	26	$	18	$	37	$	171	$	145	$	37
Current	$	26	$	15	$	14	$	18	$	32	$	12
Noncurrent				3		23		153		113		25
Total derivatives	$	26	$	18	$	37	$	171	$	145	$	37

(a) The notional amount of the commodity forward contracts and collars was approximately 43 million, 46 million, and 44 million British Thermal Units (“BTUs”) at June 30, 2023, December 31, 2022, and June 30, 2022, respectively. The maximum maturity dates are in 2027 at June 30, 2023, December 31, 2022, and June 30, 2022.

(b) The notional amounts of the interest rate swaps designated as fair value hedges were €0 million at June 30, 2023 and €725 million at December 31, 2022 and June 30, 2022.

(c) The notional amounts of the cash flow hedges of foreign exchange risk were 477 million Mexican pesos at June 30, 2023, 0 Mexican pesos at December 31, 2022 and 514 million Mexican pesos at June 30, 2022. The maximum maturity dates are in 2023 at June 30, 2023 and in 2022 at June 30, 2022.

(d) The notional amounts of the fair value hedges of foreign exchange risk were $844 million at June 30, 2023, $844 million at December 31, 2022 and $850 million at June 30, 2022. The maximum maturity dates are in 2030 at June 30, 2023, December 31, 2022 and June 30, 2022.

(e) The notional amounts of the net investment hedges were €483 million at June 30, 2023, €358 million at December 31, 2022 and €324 million at June 30, 2022. The maximum maturity dates are in 2026 at June 30, 2023, December 31, 2022 and June 30, 2022.

(f) The notional amounts of the foreign exchange derivative contracts were $417 million, $245 million and $334 million at June 30, 2023, December 31, 2022 and June 30, 2022, respectively. The maximum maturity dates are in 2024 at June 30, 2023, and in 2023 at December 31, 2022 and June 30, 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)
	Three months ended June 30,				Three months ended June 30,
Derivatives designated as hedging instruments:	2023		2022		2023		2022
Cash Flow Hedges
Commodity forward contracts and collars (a)	$	(5)	$	(3)	$	(7)	$	2
Cash flow hedges of foreign exchange risk (a)		(1)				(1)
Net Investment Hedges
Net Investment Hedges (b)		(4)		27		1		2
	$	(10)	$	24	$	(7)	$	4

	Gain (Loss) Recognized in OCI (Effective Portion)				Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (1)
	Six months ended June 30,				Six months ended June 30,
Derivatives designated as hedging instruments:	2023		2022		2023		2022
Cash Flow Hedges
Commodity forward contracts and collars (a)	$	(23)	$	(3)	$	(11)	$	2
Cash flow hedges of foreign exchange risk (a)		(3)		13		—		14
Net Investment Hedges
Net Investment Hedges (b)		(10)		32		2		3
	$	(36)	$	42	$	(9)	$	19

	Amount of Gain (Loss) Recognized in Other income (expense), net					Amount of Gain (Loss) Recognized in Other income (expense), net
	Three months ended June 30,					Six months ended June 30,
Derivatives not designated as hedges:	2023		2022			2023		2022
Foreign exchange derivative contracts	$	(5)	$	(19)	$	(6)	$	(16)

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