Financial Instruments and Risk Management (Tables)

6 Months Ended

Jun. 30, 2024

Financial Instruments and Risk Management

Schedule of additional information related to the commercial risk management instruments

($ in millions)	June 30, 2024
Commercial risk area	Commodity		Currency		Interest Rate
Notional amount of contracts	$	1,202	$	4,483	$	600
Net gain (loss) included in AOCI, after-tax		16		(3)		12
Net gain (loss) included in AOCI, after-tax, expected to be recognized in net earnings within the next 12 months		16		9		7
Longest duration of forecasted cash flow hedge transactions in years		1		2		3

Schedule of fair value of derivative instruments

		June 30, 2024
($ in millions)	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	31	$	—	$	31
Currency contracts			84		15		99
Interest rate and other contracts			9		—		9
Total current derivative contracts	Other current assets	$	124	$	15	$	139
Commodity contracts		$	1	$	—	$	1
Currency contracts			19		—		19
Interest rate and other contracts			7		—		7
Total noncurrent derivative contracts	Other noncurrent assets	$	27	$	—	$	27
Liabilities:
Commodity contracts		$	18	$	1	$	19
Currency contracts			—		26		26
Other contracts			—		12		12
Total current derivative contracts	Other current liabilities	$	18	$	39	$	57
Commodity contracts		$	1	$	—	$	1
Total noncurrent derivative contracts	Other noncurrent liabilities	$	1	$	—	$	1

		December 31, 2023
($ in millions)	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	20	$	—	$	20
Currency contracts			65		13		78
Interest rate and other contracts			9		2		11
Total current derivative contracts	Other current assets	$	94	$	15	$	109
Currency contracts		$	1	$	—	$	1
Total noncurrent derivative contracts	Other noncurrent assets	$	1	$	—	$	1
Liabilities:
Commodity contracts		$	19	$	—	$	19
Currency contracts			—		30		30
Interest rate and other contracts			3		—		3
Total current derivative contracts	Other current liabilities	$	22	$	30	$	52
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,
		2024				2023
($ 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	$	(19)	$	—	$	24	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		4		(9)		(16)		6
Interest rate contracts - manage exposure for outstanding debt	Interest expense		3		—		2		—
Currency contracts - manage currency exposure	Selling, general and administrative		16		29		6		(1)
Equity contracts	Selling, general and administrative		—		(11)		—		7
Total		$	4	$	9	$	16	$	12

		Six Months Ended June 30,
		2024				2023
($ 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	$	(6)	$	—	$	11	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		(10)		(6)		(16)		(1)
Interest rate contracts - manage exposure for outstanding debt	Interest expense		6		—		2		(5)
Currency contracts - manage currency exposure	Selling, general and administrative		48		56		3		(2)
Equity contracts	Selling, general and administrative		—		3		—		15
Total		$	38	$	53	$	—	$	7

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

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2024		2023		2024		2023
Amounts reclassified into earnings:
Commodity contracts	$	15	$	(8)	$	16	$	5
Interest rate contracts		(3)		(2)		(6)		(2)
Currency exchange contracts		(16)		(6)		(48)		(3)
Change in fair value of cash flow hedges:
Commodity contracts		9		10		10		24
Interest rate contracts		4		22		16		22
Currency exchange contracts		16		(1)		45		(2)
Currency and tax impacts		(6)		(4)		(9)		(12)
	$	19	$	11	$	24	$	32