Financial Instruments and Risk Management (Tables)

12 Months Ended

Dec. 31, 2021

Financial Instruments and Risk Management

Schedule of additional information related to the commercial risk management instruments

($ in millions)	December 31, 2021
Commercial risk area	Commodity			Currency		Interest Rate
Notional amount of contracts	$	1,882	(a)	$	2,761	$	1,182
Net gain (loss) included in AOCI, after-tax		106	(b)		17		—
Net gain (loss) included in AOCI, after-tax, expected to be recognized in net earnings within the next 12 months		104	(b)		17		—
Longest duration of forecasted cash flow hedge transactions in years		2			3		2

(a) Substantially all aluminum contracts received hedge accounting treatment as of December 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

		December 31, 2021
($ in millions)	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	142	$	—	$	142
Currency contracts			2		19		21
Other contracts			1		6		7
Total current derivative contracts	Other current assets	$	145	$	25	$	170
Commodity contracts		$	3	$	—	$	3
Currency contracts			59		1		60
Total noncurrent derivative contracts	Other noncurrent assets	$	62	$	1	$	63
Liabilities:
Commodity contracts		$	20	$	—	$	20
Currency contracts			—		8		8
Other contracts			—		1		1
Total current derivative contracts	Other current liabilities	$	20	$	9	$	29
Currency contracts		$	—	$	3	$	3
Total noncurrent derivative contracts	Other noncurrent liabilities	$	—	$	3	$	3

		December 31, 2020
		Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	50	$	—	$	50
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
Currency contracts			—		63		63
Other contracts			—		4		4
Total current derivative contracts	Other current liabilities	$	17	$	67	$	84
Currency contracts		$	8	$	2	$	10
Total noncurrent derivative contracts	Other noncurrent liabilities	$	8	$	2	$	10

Schedule of impact on earnings from derivative instruments

		Year Ended December 31, 2021
($ 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	$	(121)	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		153		18
Interest rate contracts - manage exposure for outstanding debt	Interest expense		(2)		—
Currency contracts - manage currency exposure	Selling, general and administrative		90		56
Equity contracts	Selling, general and administrative		—		5
Total		$	120	$	79

		Year Ended December 31, 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
Commodity contracts - manage exposure to customer pricing	Net sales	$	22	$	1
Commodity contracts - manage exposure to supplier pricing	Cost of sales		(65)		(1)
Interest rate contracts - manage exposure for outstanding debt	Interest expense		(8)		—
Currency contracts - manage currency exposure	Selling, general and administrative		(54)		(17)
Cross-currency swaps - manage intercompany currency exposure	Selling, general and administrative		(2)		—
Equity contracts	Selling, general and administrative		—		76
Total		$	(107)	$	59

		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		13		—
Currency contracts - manage currency exposure	Selling, general and administrative		7		111
Cross-currency swaps - manage intercompany currency exposure	Selling, general and administrative		35		—
Equity contracts	Selling, general and administrative		—		46
Total		$	28	$	159

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

	Years Ended December 31,
($ in millions)	2021		2020		2019
Amounts reclassified into earnings:
Commodity contracts	$	(32)	$	43	$	27
Cross-currency swap contracts		—		2		(35)
Interest rate contracts		2		8		(13)
Currency exchange contracts		(90)		54		(7)
Change in fair value of cash flow hedges:
Commodity contracts		122		21		(10)
Interest rate contracts		—		(5)		1
Cross-currency swap contracts		—		1		78
Currency exchange contracts		68		(22)		17
Currency and tax impacts		(14)		(23)		(13)
Stranded tax effects reclassified into retained earnings:
Commodity contracts		—		—		2
Cross-currency swap contracts		—		—		(5)
	$	56	$	79	$	42