Financial Instruments and Risk Management (Tables)

6 Months Ended

Jun. 30, 2018

Financial Instruments and Risk Management

Schedule of fair value of derivative instruments

		June 30, 2018
($ in millions)	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	40	$	6	$	46
Foreign currency contracts			1		23		24
Total current derivative contracts	Other current assets	$	41	$	29	$	70
Commodity contracts		$	3	$	—	$	3
Total noncurrent derivative contracts	Other noncurrent assets	$	3	$	—	$	3
Liabilities:
Commodity contracts		$	3	$	4	$	7
Foreign currency contracts			1		5		6
Interest rate and other contracts			—		4		4
Total current derivative contracts	Other current liabilities	$	4	$	13	$	17
Commodity contracts		$	2	$	—	$	2
Interest rate and other contracts			92		—		92
Total noncurrent derivative contracts	Other noncurrent liabilities	$	94	$	—	$	94

		December 31, 2017
		Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	46	$	3	$	49
Foreign currency contracts			5		10		15
Total current derivative contracts	Other current assets	$	51	$	13	$	64
Commodity contracts		$	6	$	—	$	6
Total noncurrent derivative contracts	Other noncurrent assets	$	6	$	—	$	6
Liabilities:
Commodity contracts		$	4	$	4	$	8
Foreign currency contracts			—		21		21
Interest rate and other contracts			—		2		2
Total current derivative contracts	Other current liabilities	$	4	$	27	$	31
Interest rate and other contracts		$	117	$	3	$	120
Total noncurrent derivative contracts	Other noncurrent liabilities	$	117	$	3	$	120

Schedule of impact on earnings from derivative instruments

		Three Months Ended June 30,
		2018				2017
($ 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)	$	—	$	—	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		18		4		9		(4)
Foreign currency contracts - manage general exposure with the business	Selling, general and administrative		1		68		—		(14)
Cross-currency swaps - manage intercompany currency exposure within the business	Selling, general and administrative		59		—		(71)		—
Cross-currency swaps - manage intercompany currency exposure within the business	Interest expense		3		—		5		—
Equity contracts	Selling, general and administrative		—		(11)		—		13
Total		$	80	$	61	$	(57)	$	(5)

		Six Months Ended June 30,
		2018				2017
($ 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	$	(4)	$	1	$	(3)	$	(2)
Commodity contracts - manage exposure to supplier pricing	Cost of sales		28		4		17		(3)
Foreign currency contracts - manage general exposure with the business	Selling, general and administrative		1		57		—		(29)
Cross-currency swaps - manage intercompany currency exposure within the business	Selling, general and administrative		30		—		(84)		—
Cross-currency swaps - manage intercompany currency exposure within the business	Interest expense		6		—		10		—
Equity contracts	Selling, general and administrative		—		(7)		—		10
Total		$	61	$	55	$	(60)	$	(24)

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

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2018		2017		2018		2017
Amounts reclassified into earnings:
Commodity contracts	$	(17)	$	(9)	$	(24)	$	(14)
Cross-currency swap contracts		(62)		66		(36)		74
Currency exchange contracts		(1)		—		(1)		—
Change in fair value of cash flow hedges:
Commodity contracts		42		(28)		12		23
Interest rate contracts		—		—		—		1
Cross-currency swap contracts		71		(66)		32		(69)
Currency exchange contracts		(2)		2		(3)		1
Foreign currency and tax impacts		(2)		15		6		21
	$	29	$	(20)	$	(14)	$	37