Financial Instruments and Risk Management (Tables)

12 Months Ended

Dec. 31, 2019

Financial Instruments and Risk Management

Schedule of fair value of derivative instruments

		December 31, 2019
($ in millions)	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	7	$	1	$	8
Foreign currency contracts			4		43		47
Other contracts			2		—		2
Total current derivative contracts	Other current assets	$	13	$	44	$	57
Foreign currency contracts		$	15	$	—	$	15
Other contracts			1		—		1
Total noncurrent derivative contracts	Other noncurrent assets	$	16	$	—	$	16
Liabilities:
Commodity contracts		$	26	$	1	$	27
Foreign currency contracts			—		18		18
Other contracts			—		19		19
Total current derivative contracts	Other current liabilities	$	26	$	38	$	64
Commodity contracts		$	1	$	—	$	1
Total noncurrent derivative contracts	Other noncurrent liabilities	$	1	$	—	$	1

		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

		Year Ended December 31, 2019
($ 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	$	18	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		(45)		2
Interest rate contracts - manage exposure for outstanding debt	Interest expense		1		—
Foreign currency contracts - manage currency exposure	Selling, general and administrative		7		111
Cross-currency swaps - manage intercompany currency exposure	Selling, general and administrative		35		—
Cross-currency swaps - manage intercompany currency exposure	Interest expense		12		—
Equity contracts	Selling, general and administrative		—		46
Total		$	28	$	159

		Year Ended December 31, 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
Commodity contracts - manage exposure to customer pricing	Net sales	$	1	$	1
Commodity contracts - manage exposure to supplier pricing	Cost of sales		54		8
Foreign currency contracts - manage currency exposure	Selling, general and administrative		1		70
Cross-currency swaps - manage intercompany currency exposure	Selling, general and administrative		49		—
Cross-currency swaps - manage intercompany currency exposure	Interest expense		14		—
Equity contracts	Selling, general and administrative		—		19
Total		$	119	$	98

		Year Ended December 31, 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
Commodity contracts - manage exposure to customer pricing	Net sales	$	(7)	$	(4)
Commodity contracts - manage exposure to supplier pricing	Cost of sales		50		(5)
Foreign currency contracts - manage general exposure with the business	Selling, general and administrative		(1)		(57)
Cross-currency swaps - manage intercompany currency exposure within the business	Selling, general and administrative		(136)		—
Cross-currency swaps - manage intercompany currency exposure within the business	Interest expense		16		—
Equity contracts	Selling, general and administrative		—		(1)
Total		$	(78)	$	(67)

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

	Years Ended December 31,
($ in millions)	2019		2018		2017
Amounts reclassified into earnings:
Commodity contracts	$	27	$	(55)	$	(43)
Cross-currency swap contracts		(47)		(63)		120
Interest rate contracts		(1)		—		—
Currency exchange contracts		(7)		(1)		1
Change in fair value of cash flow hedges:
Commodity contracts		(10)		(31)		67
Interest rate contracts		1		—		—
Cross-currency swap contracts		78		69		(137)
Currency exchange contracts		17		(5)		7
Foreign currency and tax impacts		(13)		19		20
Stranded tax effects reclassified into retained earnings:
Commodity contracts		2		—		—
Cross-currency swap contracts		(5)		—		—
	$	42	$	(67)	$	35