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Financial Instruments and Risk Management (Tables)
6 Months Ended
Jun. 30, 2022
Financial Instruments and Risk Management  
Schedule of additional information related to the commercial risk management instruments

($ in millions)

June 30, 2022

Commercial risk area

Commodity

    

Currency

    

Interest Rate

Notional amount of contracts

$

2,068

$

3,696

$

1,129

Net gain (loss) included in AOCI, after-tax

97

6

1

Net gain (loss) included in AOCI, after-tax, expected to be recognized in net earnings within the next 12 months

99

20

1

Longest duration of forecasted cash flow hedge transactions in years

2

3

1

Schedule of fair value of derivative instruments

June 30, 2022

($ in millions)

Balance Sheet Location

    

Derivatives
Designated
as Hedging
Instruments

    

Derivatives not
Designated as
Hedging
Instruments

    

Total

Assets:

Commodity contracts

$

173

$

1

$

174

Currency contracts

68

68

Other contracts

1

2

3

Total current derivative contracts

Other current assets

$

174

$

71

$

245

Commodity contracts

$

1

$

$

1

Currency contracts

116

2

118

Total noncurrent derivative contracts

Other noncurrent assets

$

117

$

2

$

119

 

Liabilities:

Commodity contracts

$

49

$

$

49

Currency contracts

48

48

Other contracts

4

4

Total current derivative contracts

Other current liabilities

$

49

$

52

$

101

Commodity contracts

$

2

$

$

2

Currency contracts

$

$

2

$

2

Total noncurrent derivative contracts

Other noncurrent liabilities

$

2

$

2

$

4

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 June 30,

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

$

(51)

$

$

(45)

$

Commodity contracts - manage exposure to supplier pricing

Cost of sales

111

(6)

32

3

Interest rate contracts - manage exposure for outstanding debt

Interest expense

(1)

4

Currency contracts - manage currency exposure

Selling, general and administrative

49

65

(3)

(15)

Equity contracts

Selling, general and administrative

(53)

(9)

Total

$

108

$

10

$

(16)

$

(21)

Six Months Ended June 30,

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

$

(82)

$

$

(61)

$

Commodity contracts - manage exposure to supplier pricing

Cost of sales

146

(20)

42

6

Interest rate contracts - manage exposure for outstanding debt

Interest expense

4

Currency contracts - manage currency exposure

Selling, general and administrative

77

60

39

20

Equity contracts

Selling, general and administrative

(69)

(34)

Total

$

141

$

(25)

$

20

$

(8)

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

Three Months Ended June 30,

Six Months Ended June 30,

($ in millions)

    

2022

    

2021

    

2022

    

2021

Amounts reclassified into earnings:

Commodity contracts

$

(60)

$

13

$

(64)

$

19

Interest rate contracts

1

Currency exchange contracts

(49)

3

(77)

(39)

Change in fair value of cash flow hedges:

Commodity contracts

(32)

42

62

93

Interest rate contracts

(1)

1

Currency exchange contracts

57

1

61

32

Currency and tax impacts

8

(14)

(2)

(23)

$

(76)

$

45

$

(19)

$

82