Financial Instruments and Risk Management (Tables)

6 Months Ended

Jun. 30, 2020

Financial Instruments and Risk Management

Schedule of fair value of derivative instruments

		June 30, 2020
($ in millions)	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	26	$	—	$	26
Foreign currency contracts			—		11		11
Other contracts			—		4		4
Total current derivative contracts	Other current assets	$	26	$	15	$	41
Commodity contracts		$	4	$	—	$	4
Foreign currency contracts			68		1		69
Total noncurrent derivative contracts	Other noncurrent assets	$	72	$	1	$	73
Liabilities:
Commodity contracts		$	66	$	1	$	67
Foreign currency contracts			—		17		17
Other contracts			2		3		5
Total current derivative contracts	Other current liabilities	$	68	$	21	$	89
Commodity contracts		$	4	$	—	$	4
Foreign currency contracts			—		1		1
Total noncurrent derivative contracts	Other noncurrent liabilities	$	4	$	1	$	5

		December 31, 2019
		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

Schedule of impact on earnings from derivative instruments

		Three Months Ended June 30,
		2020				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		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	$	37	$	—	$	4	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		(39)		10		(11)		2
Interest rate contracts - manage exposure for outstanding debt	Interest expense		(2)		(1)		4		—
Foreign currency contracts - manage currency exposure	Selling, general and administrative		(11)		18		(1)		(15)
Cross-currency swaps - manage intercompany currency exposure	Selling, general and administrative		—		—		(14)		—
Equity contracts	Selling, general and administrative		—		12		—		33
Total		$	(15)	$	39	$	(18)	$	20

		Six Months Ended June 30,
		2020				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		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	$	37	$	1	$	6	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		(35)		9		(16)		3
Interest rate contracts - manage exposure for outstanding debt	Interest expense		(3)		—		8		—
Foreign currency contracts - manage currency exposure	Selling, general and administrative		7		40		(1)		43
Cross-currency swaps - manage intercompany currency exposure	Selling, general and administrative		(1)		—		9		—
Equity contracts	Selling, general and administrative		—		10		—		63
Total		$	5	$	60	$	6	$	109

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

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2020		2019		2020		2019
Amounts reclassified into earnings:
Commodity contracts	$	2	$	7	$	(2)	$	10
Cross-currency swap contracts		—		14		1		(9)
Interest rate contracts		2		(4)		3		(8)
Currency exchange contracts		11		1		(7)		1
Change in fair value of cash flow hedges:
Commodity contracts		1		(19)		(29)		(5)
Interest rate contracts		(2)		—		(4)		—
Cross-currency swap contracts		—		(3)		1		40
Currency exchange contracts		(3)		6		55		4
Foreign currency and tax impacts		(1)		1		(3)		(8)
Stranded tax effects reclassified into retained earnings:
Commodity contracts		—		—		—		2
Cross-currency swap contracts		—		—		—		(5)
	$	10	$	3	$	15	$	22