Financial Instruments and Risk Management (Tables)

3 Months Ended

Mar. 31, 2021

Financial Instruments and Risk Management

Schedule of additional information related to the commercial risk management instruments

($ in millions)	March 31, 2021
Commercial risk area	Commodity			Currency		Interest Rate
Notional amount of contracts	$	1,375	(a)	$	2,724	$	1,171
Net gain (loss) included in AOCI, after-tax		80	(b)		24		—
Net gain (loss) included in AOCI, after-tax, expected to be recognized in the unaudited condensed consolidated statement of earnings within the next 12 months		66	(b)		17		—
Longest duration of forecasted cash flow hedge transactions in years		3			4		1

(a) Substantially all aluminum contracts received hedge accounting treatment as of March 31, 2021.

(b) Substantially all of this gain (loss) will be offset by pricing changes in sales and purchase contracts.

Schedule of fair value of derivative instruments

		March 31, 2021
($ in millions)	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	115	$	—	$	115
Foreign currency contracts			3		11		14
Other contracts			—		4		4
Total current derivative contracts	Other current assets	$	118	$	15	$	133
Commodity contracts		$	17	$	—	$	17
Foreign currency contracts			26		—		26
Total noncurrent derivative contracts	Other noncurrent assets	$	43	$	—	$	43
Liabilities:
Commodity contracts		$	33	$	—	$	33
Foreign currency contracts			2		13		15
Other contracts			—		4		4
Total current derivative contracts	Other current liabilities	$	35	$	17	$	52
Foreign currency contracts		$	—	$	4	$	4
Total noncurrent derivative contracts	Other noncurrent liabilities	$	—	$	4	$	4

		December 31, 2020
		Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	50	$	—	$	50
Foreign currency contracts			3		27		30
Other contracts			—		2		2
Total current derivative contracts	Other current assets	$	53	$	29	$	82
Commodity contracts		$	8	$	—	$	8
Total noncurrent derivative contracts	Other noncurrent assets	$	8	$	—	$	8
Liabilities:
Commodity contracts		$	17	$	—	$	17
Foreign currency contracts			—		63		63
Other contracts			—		4		4
Total current derivative contracts	Other current liabilities	$	17	$	67	$	84
Foreign currency contracts		$	8	$	2	$	10
Total noncurrent derivative contracts	Other noncurrent liabilities	$	8	$	2	$	10

Schedule of impact on earnings from derivative instruments

		Three Months Ended March 31,
		2021				2020
($ 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	$	(16)	$	—	$	—	$	1
Commodity contracts - manage exposure to supplier pricing	Cost of sales		10		3		4		(1)
Interest rate contracts - manage exposure for outstanding debt	Interest expense		—		—		(1)		1
Foreign currency contracts - manage currency exposure	Selling, general and administrative		42		35		18		22
Cross-currency swaps - manage intercompany currency exposure	Selling, general and administrative		—		—		(1)		—
Equity contracts	Selling, general and administrative		—		(25)		—		(2)
Total		$	36	$	13	$	20	$	21

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

	Three Months Ended March 31,
($ in millions)	2021		2020
Amounts reclassified into earnings:
Commodity contracts	$	6	$	(4)
Cross-currency swap contracts		—		1
Interest rate contracts		—		1
Currency exchange contracts		(42)		(18)
Change in fair value of cash flow hedges:
Commodity contracts		51		(30)
Interest rate contracts		—		(2)
Cross-currency swap contracts		—		1
Currency exchange contracts		31		58
Foreign currency and tax impacts		(9)		(2)
	$	37	$	5