Financial Instruments and Risk Management (Tables)

3 Months Ended

Mar. 31, 2022

Financial Instruments and Risk Management

Schedule of additional information related to the commercial risk management instruments

($ in millions)	March 31, 2022
Commercial risk area	Commodity		Currency		Interest Rate
Notional amount of contracts	$	1,999	$	2,910	$	1,164
Net gain (loss) included in AOCI, after-tax		180		(1)		1
Net gain (loss) included in AOCI, after-tax, expected to be recognized in net earnings within the next 12 months		174		13		1
Longest duration of forecasted cash flow hedge transactions in years		2		3		1

Schedule of fair value of derivative instruments

		March 31, 2022
($ in millions)	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	262	$	—	$	262
Currency contracts			3		18		21
Other contracts			1		4		5
Total current derivative contracts	Other current assets	$	266	$	22	$	288
Commodity contracts		$	8	$	—	$	8
Currency contracts			68		1		69
Total noncurrent derivative contracts	Other noncurrent assets	$	76	$	1	$	77
Liabilities:
Commodity contracts		$	82	$	—	$	82
Currency contracts			8		22		30
Other contracts			—		4		4
Total current derivative contracts	Other current liabilities	$	90	$	26	$	116
Currency contracts		$	—	$	2	$	2
Total noncurrent derivative contracts	Other noncurrent liabilities	$	—	$	2	$	2

		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

Schedule of impact on earnings from derivative instruments

		Three Months Ended March 31,
		2022				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		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	$	(31)	$	—	$	(16)	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		35		(14)		10		3
Interest rate contracts - manage exposure for outstanding debt	Interest expense		1		—		—		—
Currency contracts - manage currency exposure	Selling, general and administrative		28		(5)		42		35
Equity contracts	Selling, general and administrative		—		(16)		—		(25)
Total		$	33	$	(35)	$	36	$	13

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

	Three Months Ended March 31,
($ in millions)	2022		2021
Amounts reclassified into earnings:
Commodity contracts	$	(4)	$	6
Interest rate contracts		(1)		—
Currency exchange contracts		(28)		(42)
Change in fair value of cash flow hedges:
Commodity contracts		94		51
Interest rate contracts		2		—
Currency exchange contracts		4		31
Currency and tax impacts		(10)		(9)
	$	57	$	37