XML 68 R49.htm IDEA: XBRL DOCUMENT v3.22.4
Financial Instruments and Risk Management (Tables)
12 Months Ended
Dec. 31, 2022
Financial Instruments and Risk Management  
Schedule of additional information related to the commercial risk management instruments

($ in millions)

December 31, 2022

Commercial risk area

Commodity

    

Currency

    

Interest Rate

Notional amount of contracts

$

1,610

(a)

$

3,216

$

214

Net gain (loss) included in AOCI, after-tax

(23)

(b)

5

Net gain (loss) included in AOCI, after-tax, expected to be recognized in net earnings within the next 12 months

(23)

(b)

19

Longest duration of forecasted cash flow hedge transactions in years

2

2

1

(a)Substantially all aluminum contracts received hedge accounting treatment as of December 31, 2022.
(b)Substantially all of this gain (loss) will be offset by pricing changes in sales and purchase contracts.

Schedule of fair value of derivative instruments

December 31, 2022

($ in millions)

Balance Sheet Location

    

Derivatives
Designated
as Hedging
Instruments

    

Derivatives not
Designated as
Hedging
Instruments

    

Total

Assets:

Commodity contracts

$

11

$

$

11

Currency contracts

28

28

Total current derivative contracts

Other current assets

$

11

$

28

$

39

Currency contracts

$

84

$

$

84

Total noncurrent derivative contracts

Other noncurrent assets

$

84

$

$

84

 

Liabilities:

Commodity contracts

$

48

$

$

48

Currency contracts

1

35

36

Other contracts

12

12

Total current derivative contracts

Other current liabilities

$

49

$

47

$

96

Currency contracts

1

1

Total noncurrent derivative contracts

Other noncurrent liabilities

$

$

1

$

1

December 31, 2021

($ in millions)

Balance Sheet Location

Derivatives
Designated
as Hedging
Instruments

    

Derivatives not
Designated as
Hedging
Instruments

    

Total

Assets:

Commodity contracts

$

142

$

$

142

Currency contracts

2

19

21

Other contracts

1

6

7

Total current derivative contracts

Other current assets

$

145

$

25

$

170

Commodity contracts

$

3

$

$

3

Currency contracts

59

1

60

Total noncurrent derivative contracts

Other noncurrent assets

$

62

$

1

$

63

 

Liabilities:

Commodity contracts

$

20

$

$

20

Currency contracts

8

8

Other contracts

1

1

Total current derivative contracts

Other current liabilities

$

20

$

9

$

29

Currency contracts

$

$

3

$

3

Total noncurrent derivative contracts

Other noncurrent liabilities

$

$

3

$

3

Schedule of impact on earnings from derivative instruments

Year Ended December 31, 2022

($ in millions)

    

Location of Gain (Loss)

Recognized in Earnings on Derivatives

    

Cash Flow
Hedge -
Reclassified
Amount from
Accumulated
Other
Comprehensive
Earnings (Loss)

    

Gain (Loss) on
Derivatives not
Designated as
Hedge
Instruments

Commodity contracts - manage exposure to customer pricing

Net sales

$

59

$

Commodity contracts - manage exposure to supplier pricing

Cost of sales

119

33

Interest rate contracts - manage exposure for outstanding debt

Interest expense

2

11

Currency contracts - manage currency exposure

Selling, general and administrative

81

94

Equity contracts

Selling, general and administrative

(114)

Total

$

261

$

24

Year Ended December 31, 2021

($ in millions)

    

Location of Gain (Loss)
Recognized in Earnings on Derivatives

Cash Flow
Hedge -
Reclassified
Amount from
Accumulated
Other
Comprehensive
Earnings (Loss)

    

Gain (Loss) on
Derivatives not
Designated as
Hedge
Instruments

Commodity contracts - manage exposure to customer pricing

Net sales

$

(121)

$

Commodity contracts - manage exposure to supplier pricing

Cost of sales

153

18

Interest rate contracts - manage exposure for outstanding debt

Interest expense

(2)

Currency contracts - manage currency exposure

Selling, general and administrative

90

56

Equity contracts

Selling, general and administrative

5

Total

$

120

$

79

Year Ended December 31, 2020

($ in millions)

    

Location of Gain (Loss)

Recognized in Earnings on Derivatives

Cash Flow
Hedge -
Reclassified
Amount from
Accumulated
Other
Comprehensive
Earnings (Loss)

    

Gain (Loss) on
Derivatives not
Designated as
Hedge
Instruments

Commodity contracts - manage exposure to customer pricing

Net sales

$

22

$

1

Commodity contracts - manage exposure to supplier pricing

Cost of sales

(65)

(1)

Interest rate contracts - manage exposure for outstanding debt

Interest expense

(8)

Currency contracts - manage currency exposure

Selling, general and administrative

(54)

(17)

Cross-currency swaps - manage intercompany currency exposure

Selling, general and administrative

(2)

Equity contracts

Selling, general and administrative

76

Total

$

(107)

$

59

Schedule of changes in accumulated other comprehensive earnings (loss) for effective derivatives

Years Ended December 31,

($ in millions)

    

2022

    

2021

    

2020

Amounts reclassified into earnings:

Commodity contracts

$

(177)

$

(32)

$

43

Cross-currency swap contracts

2

Interest rate contracts

(1)

2

8

Currency exchange contracts

(83)

(90)

54

Change in fair value of cash flow hedges:

Commodity contracts

13

122

21

Interest rate contracts

1

(5)

Cross-currency swap contracts

1

Currency exchange contracts

66

68

(22)

Currency and tax impacts

40

(14)

(23)

$

(141)

$

56

$

79