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