Financial Instruments and Risk Management (Tables)

9 Months Ended

Sep. 30, 2022

Financial Instruments and Risk Management

Schedule of additional information related to the commercial risk management instruments

($ in millions)	September 30, 2022
Commercial risk area	Commodity		Currency		Interest Rate
Notional amount of contracts	$	1,758	$	2,710	$	788
Net gain (loss) included in AOCI, after-tax		—		7		—
Net gain (loss) included in AOCI, after-tax, expected to be recognized in net earnings within the next 12 months		—		22		—
Longest duration of forecasted cash flow hedge transactions in years		2		2		1

Schedule of fair value of derivative instruments

		September 30, 2022
($ in millions)	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	75	$	1	$	76
Currency contracts			—		38		38
Total current derivative contracts	Other current assets	$	75	$	39	$	114
Currency contracts		$	172	$	2	$	174
Total noncurrent derivative contracts	Other noncurrent assets	$	172	$	2	$	174
Liabilities:
Commodity contracts		$	69	$	1	$	70
Currency contracts			2		18		20
Other contracts			—		19		19
Total current derivative contracts	Other current liabilities	$	71	$	38	$	109
Commodity contracts		$	1	$	—	$	1
Currency contracts			—		1		1
Total noncurrent derivative contracts	Other noncurrent liabilities	$	1	$	1	$	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 September 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	$	105	$	—	$	(28)	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		(5)		37		53		3
Interest rate contracts - manage exposure for outstanding debt	Interest expense		2		5		—		—
Currency contracts - manage currency exposure	Selling, general and administrative		59		28		27		12
Equity contracts	Selling, general and administrative		—		(51)		—		23
Total		$	161	$	19	$	52	$	38

		Nine Months Ended September 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	$	23	$	—	$	(89)	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		141		17		95		9
Interest rate contracts - manage exposure for outstanding debt	Interest expense		2		9		—		—
Currency contracts - manage currency exposure	Selling, general and administrative		136		88		66		32
Equity contracts	Selling, general and administrative		—		(120)		—		(11)
Total		$	302	$	(6)	$	72	$	30

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

	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions)	2022		2021		2022		2021
Amounts reclassified into earnings:
Commodity contracts	$	(100)	$	(25)	$	(164)	$	(6)
Interest rate contracts		(2)		—		(2)		—
Currency exchange contracts		(59)		(27)		(136)		(66)
Change in fair value of cash flow hedges:
Commodity contracts		(32)		44		30		137
Interest rate contracts		—		(1)		1		(1)
Currency exchange contracts		62		26		123		58
Currency and tax impacts		34		(1)		32		(24)
	$	(97)	$	16	$	(116)	$	98