Financial Instruments and Risk Management (Tables)

3 Months Ended

Mar. 31, 2023

Financial Instruments and Risk Management

Schedule of additional information related to the commercial risk management instruments

($ in millions)	March 31, 2023
Commercial risk area	Commodity		Currency		Interest Rate
Notional amount of contracts	$	1,513	$	4,070	$	217
Net gain (loss) included in AOCI, after-tax		(2)		5		—
Net gain (loss) included in AOCI, after-tax, expected to be recognized in net earnings within the next 12 months		(2)		12		—
Longest duration of forecasted cash flow hedge transactions in years		2		2		1

Schedule of fair value of derivative instruments

		March 31, 2023
($ in millions)	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	26	$	—	$	26
Currency contracts			—		33		33
Other contracts			—		1		1
Total current derivative contracts	Other current assets	$	26	$	34	$	60
Commodity contracts		$	1	$	—	$	1
Currency contracts			64		—		64
Total noncurrent derivative contracts	Other noncurrent assets	$	65	$	—	$	65
Liabilities:
Commodity contracts		$	29	$	—	$	29
Currency contracts			1		41		42
Total current derivative contracts	Other current liabilities	$	30	$	41	$	71
Commodity contracts		$	1	$	—	$	1
Total noncurrent derivative contracts	Other noncurrent liabilities	$	1	$	—	$	1

		December 31, 2022
($ in millions)	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	11	$	—	$	11
Currency contracts			—		28		28
Total current derivative contracts	Other current assets	$	11	$	28	$	39
Currency contracts		$	84	$	—	$	84
Total noncurrent derivative contracts	Other noncurrent assets	$	84	$	—	$	84
Liabilities:
Commodity contracts		$	48	$	—	$	48
Currency contracts			1		35		36
Other contracts			—		12		12
Total current derivative contracts	Other current liabilities	$	49	$	47	$	96
Currency contracts		$	—	$	1	$	1
Total noncurrent derivative contracts	Other noncurrent liabilities	$	—	$	1	$	1

Schedule of impact on earnings from derivative instruments

		Three Months Ended March 31,
		2023				2022
($ 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	$	(13)	$	—	$	(31)	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		—		(7)		35		(14)
Interest rate contracts - manage exposure for outstanding debt	Interest expense		—		(5)		1		—
Currency contracts - manage currency exposure	Selling, general and administrative		(3)		(1)		28		(5)
Equity contracts	Selling, general and administrative		—		8		—		(16)
Total		$	(16)	$	(5)	$	33	$	(35)

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

	Three Months Ended March 31,
($ in millions)	2023		2022
Amounts reclassified into earnings:
Commodity contracts	$	13	$	(4)
Interest rate contracts		—		(1)
Currency exchange contracts		3		(28)
Change in fair value of cash flow hedges:
Commodity contracts		14		94
Interest rate contracts		—		2
Currency exchange contracts		(1)		4
Currency and tax impacts		(8)		(10)
	$	21	$	57