Financial Instruments and Risk Management (Tables)

9 Months Ended

Sep. 30, 2023

Financial Instruments and Risk Management

Schedule of additional information related to the commercial risk management instruments

($ in millions)	September 30, 2023
Commercial risk area	Commodity		Currency		Interest Rate
Notional amount of contracts	$	1,181	$	2,960	$	811
Net gain (loss) included in AOCI, after-tax		(23)		—		18
Net gain (loss) included in AOCI, after-tax, expected to be recognized in net earnings within the next 12 months		(23)		—		18
Longest duration of forecasted cash flow hedge transactions in years		1		1		4

Schedule of fair value of derivative instruments

		September 30, 2023
($ in millions)	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	13	$	—	$	13
Currency contracts			93		44		137
Interest rate and other contracts			23		—		23
Total current derivative contracts	Other current assets	$	129	$	44	$	173
Commodity contracts		$	1	$	—	$	1
Total noncurrent derivative contracts	Other noncurrent assets	$	1	$	—	$	1
Liabilities:
Commodity contracts		$	34	$	1	$	35
Currency contracts			—		12		12
Interest rate and other contracts			—		9		9
Total current derivative contracts	Other current liabilities	$	34	$	22	$	56
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 September 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	$	29	$	—	$	105	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		(31)		13		(5)		37
Interest rate contracts - manage exposure for outstanding debt	Interest expense		3		(2)		2		5
Currency contracts - manage currency exposure	Selling, general and administrative		31		51		59		28
Equity contracts	Selling, general and administrative		—		(20)		—		(51)
Total		$	32	$	42	$	161	$	19

		Nine Months Ended September 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	$	40	$	—	$	23	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		(47)		12		141		17
Interest rate contracts - manage exposure for outstanding debt	Interest expense		5		(7)		2		9
Currency contracts - manage currency exposure	Selling, general and administrative		34		49		136		88
Equity contracts	Selling, general and administrative		—		(5)		—		(120)
Total		$	32	$	49	$	302	$	(6)

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

	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions)	2023		2022		2023		2022
Amounts reclassified into earnings:
Commodity contracts	$	2	$	(100)	$	7	$	(164)
Interest rate contracts		(3)		(2)		(5)		(2)
Currency exchange contracts		(31)		(59)		(34)		(136)
Change in fair value of cash flow hedges:
Commodity contracts		(35)		(32)		(11)		30
Interest rate contracts		6		—		28		1
Currency exchange contracts		31		62		29		123
Currency and tax impacts		11		34		(1)		32
	$	(19)	$	(97)	$	13	$	(116)