Financial Instruments and Risk Management (Tables)

6 Months Ended

Jun. 30, 2019

Financial Instruments and Risk Management

Schedule of fair value of derivative instruments

		June 30, 2019
($ in millions)	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	10	$	—	$	10
Foreign currency contracts			2		24		26
Cross-currency and other contracts			—		12		12
Total current derivative contracts	Other current assets	$	12	$	36	$	48
Commodity contracts		$	1	$	—	$	1
Total noncurrent derivative contracts	Other noncurrent assets	$	1	$	—	$	1
Liabilities:
Commodity contracts		$	36	$	—	$	36
Foreign currency contracts			—		11		11
Cross-currency and other contracts			1		—		1
Total current derivative contracts	Other current liabilities	$	37	$	11	$	48
Commodity contracts		$	2	$	—	$	2
Cross-currency and other contracts			30		—		30
Total noncurrent derivative contracts	Other noncurrent liabilities	$	32	$	—	$	32

		December 31, 2018
		Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	9	$	1	$	10
Foreign currency contracts			—		21		21
Cross-currency and other contracts			—		5		5
Total current derivative contracts	Other current assets	$	9	$	27	$	36
Liabilities:
Commodity contracts		$	42	$	11	$	53
Foreign currency contracts			2		4		6
Cross-currency and other contracts			1		2		3
Total current derivative contracts	Other current liabilities	$	45	$	17	$	62
Commodity contracts		$	2	$	—	$	2
Cross-currency and other contracts			62		—		62
Total noncurrent derivative contracts	Other noncurrent liabilities	$	64	$	—	$	64

Schedule of impact on earnings from derivative instruments

		Three Months Ended June 30,
		2019				2018
($ 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)	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		(11)		2		18		4
Foreign currency contracts - manage currency exposure	Selling, general and administrative		(1)		(15)		1		68
Cross-currency swaps - manage intercompany currency exposure	Selling, general and administrative		(14)		—		59		—
Cross-currency swaps - manage intercompany currency exposure	Interest expense		4		—		3		—
Equity contracts	Selling, general and administrative		—		33		—		(11)
Total		$	(18)	$	20	$	80	$	61

		Six Months Ended June 30,
		2019				2018
($ 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	$	6	$	—	$	(4)	$	1
Commodity contracts - manage exposure to supplier pricing	Cost of sales		(16)		3		28		4
Foreign currency contracts - manage currency exposure	Selling, general and administrative		(1)		43		1		57
Cross-currency swaps - manage intercompany currency exposure	Selling, general and administrative		9		—		30		—
Cross-currency swaps - manage intercompany currency exposure	Interest expense		8		—		6		—
Equity contracts	Selling, general and administrative		—		63		—		(7)
Total		$	6	$	109	$	61	$	55

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

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2019		2018		2019		2018
Amounts reclassified into earnings:
Commodity contracts	$	7	$	(17)	$	10	$	(24)
Cross-currency swap contracts		10		(62)		(17)		(36)
Currency exchange contracts		1		(1)		1		(1)
Change in fair value of cash flow hedges:
Commodity contracts		(19)		42		(5)		12
Cross-currency swap contracts		(3)		71		40		32
Currency exchange contracts		6		(2)		4		(3)
Foreign currency and tax impacts		1		(2)		(8)		6
Stranded tax effects reclassified into retained earnings:
Commodity contracts		—		—		2		—
Cross-currency swap contracts		—		—		(5)		—
	$	3	$	29	$	22	$	(14)