Financial Instruments and Risk Management (Tables)

9 Months Ended

Sep. 30, 2017

Financial Instruments and Risk Management

Schedule of fair value of derivative instruments

	September 30, 2017						December 31, 2016
($ in millions)	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total		Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts	$	38	$	2	$	40	$	17	$	1	$	18
Foreign currency contracts		3		7		10		1		—		1
Interest rate and other contracts		—		2		2		—		21		21
Total current derivative contracts	$	41	$	11	$	52	$	18	$	22	$	40
Commodity contracts	$	6	$	—	$	6	$	7	$	—	$	7
Interest rate and other contracts		1		—		1		39		—		39
Total noncurrent derivative contracts	$	7	$	—	$	7	$	46	$	—	$	46
Liabilities:
Commodity contracts	$	13	$	1	$	14	$	3	$	—	$	3
Foreign currency contracts		1		16		17		—		22		22
Total current derivative contracts	$	14	$	17	$	31	$	3	$	22	$	25
Total noncurrent foreign currency derivative contracts	$	96	$	—	$	96	$	—	$	—	$	—

Schedule of impact on earnings from derivative instruments

		Three Months Ended September 30,
		2017				2016
($ 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		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	$	—	$	(1)	$	(1)	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		12		(2)		2		(4)
Interest rate contracts - manage exposure for outstanding debt	Interest expense		—		—		(1)		—
Foreign currency contracts - manage general exposure with the business	Selling, general and administrative		1		(34)		5		(18)
Foreign currency contracts - manage exposure for proposed acquisition of Rexam	Business consolidation and other activities		(3)		—		—		(12)
Cross-currency swaps - manage intercompany currency exposure within the business	Selling, general and administrative		(35)		—		(7)		—
Cross-currency swaps - manage intercompany currency exposure within the business	Interest expense		3		—		—		—
Equity and inflation contracts	Selling, general and administrative		—		(3)		—		10
Total		$	(22)	$	(40)	$	(2)	$	(24)

		Nine Months Ended September 30,
		2017				2016
($ 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		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	$	(3)	$	(3)	$	2	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		34		(5)		(8)		(4)
Interest rate contracts - manage exposure for outstanding debt	Interest expense		—		—		(1)		—
Interest rate contracts - manage exposure for forecasted Rexam financing	Debt refinancing and other costs		—		—		—		(20)
Foreign currency contracts - manage general exposure with the business	Selling, general and administrative		(2)		(63)		3		18
Foreign currency contracts - manage exposure for acquisition of Rexam	Business consolidation and other activities		—		—		—		(191)
Cross-currency swaps - manage exposure for acquisition of Rexam	Business consolidation and other activities		—		—		—		(4)
Cross-currency swaps - manage intercompany currency exposure within the business	Selling, general and administrative		(119)		—		(6)		—
Cross-currency swaps - manage intercompany currency exposure within the business	Interest expense		13		—		—		—
Commodity contracts and currency exchange contracts - attributed to the Divestment Business	Business consolidation and other activities		—		—		(4)		—
Equity contracts	Selling, general and administrative		—		8		—		9
Total		$	(77)	$	(63)	$	(14)	$	(192)

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

	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions)	2017		2016		2017		2016
Amounts reclassified into earnings:
Commodity contracts	$	(12)	$	(1)	$	(31)	$	6
Cross-currency swap contracts		32		7		106		6
Interest rate contracts		—		1		—		1
Commodity and currency exchange contracts attributed to the divestment business		—		—		—		4
Currency exchange contracts		2		(5)		2		(3)
Change in fair value of cash flow hedges:
Commodity contracts		14		1		43		7
Interest rate contracts		—		—		1		(1)
Cross-currency swap contracts		(47)		(23)		(116)		(28)
Currency exchange contracts		3		3		4		3
Foreign currency and tax impacts		(2)		9		18		7
	$	(10)	$	(8)	$	27	$	2