Financial Instruments and Risk Management (Tables)

9 Months Ended

Sep. 30, 2020

Financial Instruments and Risk Management

Schedule of fair value of derivative instruments

		September 30, 2020
($ in millions)	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	29	$	—	$	29
Foreign currency contracts			—		11		11
Other contracts			—		6		6
Total current derivative contracts	Other current assets	$	29	$	17	$	46
Commodity contracts		$	6	$	—	$	6
Foreign currency contracts			31		1		32
Total noncurrent derivative contracts	Other noncurrent assets	$	37	$	1	$	38
Liabilities:
Commodity contracts		$	29	$	1	$	30
Foreign currency contracts			2		60		62
Other contracts			1		—		1
Total current derivative contracts	Other current liabilities	$	32	$	61	$	93
Commodity contracts		$	1	$	—	$	1
Foreign currency contracts			—		2		2
Total noncurrent derivative contracts	Other noncurrent liabilities	$	1	$	2	$	3

		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 September 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	$	(4)	$	—	$	6	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		(27)		(7)		(11)		(1)
Interest rate contracts - manage exposure for outstanding debt	Interest expense		(2)		—		2		—
Foreign currency contracts - manage currency exposure	Selling, general and administrative		(30)		(51)		6		90
Cross-currency swaps - manage intercompany currency exposure	Selling, general and administrative		—		—		32		—
Equity contracts	Selling, general and administrative		—		37		—		7
Total		$	(63)	$	(21)	$	35	$	96

		Nine Months Ended September 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	$	33	$	1	$	12	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		(62)		2		(27)		2
Interest rate contracts - manage exposure for outstanding debt	Interest expense		(5)		—		10		—
Foreign currency contracts - manage currency exposure	Selling, general and administrative		(23)		(11)		5		133
Cross-currency swaps - manage intercompany currency exposure	Selling, general and administrative		(1)		—		41		—
Equity contracts	Selling, general and administrative		—		47		—		70
Total		$	(58)	$	39	$	41	$	205

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

	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions)	2020		2019		2020		2019
Amounts reclassified into earnings:
Commodity contracts	$	31	$	5	$	29	$	15
Cross-currency swap contracts		—		(32)		1		(41)
Interest rate contracts		2		(2)		5		(10)
Currency exchange contracts		30		(6)		23		(5)
Change in fair value of cash flow hedges:
Commodity contracts		21		(5)		(8)		(10)
Interest rate contracts		1		(1)		(3)		(1)
Cross-currency swap contracts		(1)		41		—		81
Currency exchange contracts		(39)		14		16		18
Foreign currency and tax impacts		(9)		(2)		(12)		(10)
Stranded tax effects reclassified into retained earnings:
Commodity contracts		—		—		—		2
Cross-currency swap contracts		—		—		—		(5)
	$	36	$	12	$	51	$	34