Financial Instruments and Risk Management (Tables)

6 Months Ended

Jun. 30, 2023

Financial Instruments and Risk Management

Schedule of additional information related to the commercial risk management instruments

($ in millions)	June 30, 2023
Commercial risk area	Commodity		Currency		Interest Rate
Notional amount of contracts	$	1,363	$	2,967	$	818
Net gain (loss) included in AOCI, after-tax		(2)		—		16
Net gain (loss) included in AOCI, after-tax, expected to be recognized in net earnings within the next 12 months		(1)		9		16
Longest duration of forecasted cash flow hedge transactions in years		1		2		4

Schedule of fair value of derivative instruments

		June 30, 2023
($ in millions)	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	44	$	—	$	44
Currency contracts			4		14		18
Interest rate and other contracts			21		8		29
Total current derivative contracts	Other current assets	$	69	$	22	$	91
Currency contracts		$	61	$	1	$	62
Total noncurrent derivative contracts	Other noncurrent assets	$	61	$	1	$	62
Liabilities:
Commodity contracts		$	39	$	—	$	39
Currency contracts			1		26		27
Interest rate and other contracts			1		—		1
Total current derivative contracts	Other current liabilities	$	41	$	26	$	67
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 (loss) from derivative instruments

		Three Months Ended June 30,
		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	$	24	$	—	$	(51)	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		(16)		6		111		(6)
Interest rate contracts - manage exposure for outstanding debt	Interest expense		2		—		(1)		4
Currency contracts - manage currency exposure	Selling, general and administrative		6		(1)		49		65
Equity contracts	Selling, general and administrative		—		7		—		(53)
Total		$	16	$	12	$	108	$	10

		Six Months Ended June 30,
		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	$	11	$	—	$	(82)	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		(16)		(1)		146		(20)
Interest rate contracts - manage exposure for outstanding debt	Interest expense		2		(5)		—		4
Currency contracts - manage currency exposure	Selling, general and administrative		3		(2)		77		60
Equity contracts	Selling, general and administrative		—		15		—		(69)
Total		$	—	$	7	$	141	$	(25)

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

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2023		2022		2023		2022
Amounts reclassified into earnings:
Commodity contracts	$	(8)	$	(60)	$	5	$	(64)
Interest rate contracts		(2)		1		(2)		—
Currency exchange contracts		(6)		(49)		(3)		(77)
Change in fair value of cash flow hedges:
Commodity contracts		10		(32)		24		62
Interest rate contracts		22		(1)		22		1
Currency exchange contracts		(1)		57		(2)		61
Currency and tax impacts		(4)		8		(12)		(2)
	$	11	$	(76)	$	32	$	(19)