Financial Instruments and Risk Management (Tables)

9 Months Ended

Sep. 30, 2018

Financial Instruments and Risk Management

Schedule of fair value of derivative instruments

		September 30, 2018
($ in millions)	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	18	$	2	$	20
Foreign currency contracts			1		18		19
Cross-currency and other contracts			—		2		2
Total current derivative contracts	Other current assets	$	19	$	22	$	41
Commodity contracts		$	1	$	—	$	1
Total noncurrent derivative contracts	Other noncurrent assets	$	1	$	—	$	1
Liabilities:
Commodity contracts		$	13	$	5	$	18
Foreign currency contracts			—		4		4
Cross-currency and other contracts			—		1		1
Total current derivative contracts	Other current liabilities	$	13	$	10	$	23
Commodity contracts		$	1	$	—	$	1
Cross-currency and other contracts			86		—		86
Total noncurrent derivative contracts	Other noncurrent liabilities	$	87	$	—	$	87

		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
Cross-currency and other contracts			—		2		2
Total current derivative contracts	Other current liabilities	$	4	$	27	$	31
Cross-currency 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 September 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	$	2	$	—	$	—	$	(1)
Commodity contracts - manage exposure to supplier pricing	Cost of sales		19		2		12		(2)
Foreign currency contracts - manage general exposure with the business	Selling, general and administrative		—		16		1		(34)
Foreign currency contracts - manage exposure for acquisition of Rexam	Business consolidation and other activities		—		—		(3)		—
Cross-currency swaps - manage intercompany currency exposure within the business	Selling, general and administrative		7		—		(35)		—
Cross-currency swaps - manage intercompany currency exposure within the business	Interest expense		4		—		3		—
Equity contracts	Selling, general and administrative		—		21		—		(3)
Total		$	32	$	39	$	(22)	$	(40)

		Nine Months Ended September 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	$	(2)	$	1	$	(3)	$	(3)
Commodity contracts - manage exposure to supplier pricing	Cost of sales		47		6		34		(5)
Foreign currency contracts - manage general exposure with the business	Selling, general and administrative		1		73		(2)		(63)
Cross-currency swaps - manage intercompany currency exposure within the business	Selling, general and administrative		37		—		(119)		—
Cross-currency swaps - manage intercompany currency exposure within the business	Interest expense		10		—		13		—
Equity contracts	Selling, general and administrative		—		14		—		8
Total		$	93	$	94	$	(77)	$	(63)

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

	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions)	2018		2017		2018		2017
Amounts reclassified into earnings:
Commodity contracts	$	(21)	$	(12)	$	(45)	$	(31)
Cross-currency swap contracts		(11)		32		(47)		106
Currency exchange contracts		—		2		(1)		2
Change in fair value of cash flow hedges:
Commodity contracts		(11)		14		1		43
Interest rate contracts		—		—		—		1
Cross-currency swap contracts		13		(47)		45		(116)
Currency exchange contracts		1		3		(2)		4
Foreign currency and tax impacts		6		(2)		12		18
	$	(23)	$	(10)	$	(37)	$	27