Financial Instruments and Risk Management (Tables)

9 Months Ended

Sep. 30, 2024

Financial Instruments and Risk Management

Schedule of additional information related to the commercial risk management instruments

($ in millions)	September 30, 2024
Commercial risk area	Commodity		Currency		Interest Rate
Notional amount of contracts	$	1,088	$	2,613	$	600
Net gain (loss) included in AOCI, after-tax		(2)		(1)		—
Net gain (loss) included in AOCI, after-tax, expected to be recognized in net earnings within the next 12 months		(2)		8		2
Longest duration of forecasted cash flow hedge transactions in years		1		1		3

Schedule of fair value of derivative instruments

		September 30, 2024
($ in millions)	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	24	$	—	$	24
Currency contracts			—		5		5
Interest rate and other contracts			3		5		8
Total current derivative contracts	Other current assets	$	27	$	10	$	37
Commodity contracts		$	1	$	—	$	1
Total noncurrent derivative contracts	Other noncurrent assets	$	1	$	—	$	1
Liabilities:
Commodity contracts		$	24	$	—	$	24
Currency contracts			—		14		14
Interest rate and other contracts			1		—		1
Total current derivative contracts	Other current liabilities	$	25	$	14	$	39
Commodity contracts		$	1	$	—	$	1
Currency contracts			4		—		4
Interest rate and other contracts			3		—		3
Net investment hedge			20		—		20
Total noncurrent derivative contracts	Other noncurrent liabilities	$	28	$	—	$	28

		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 September 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	$	1	$	—	$	29	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		7		9		(31)		13
Interest rate contracts - manage exposure for outstanding debt	Interest expense		3		—		3		(2)
Currency contracts - manage currency exposure	Selling, general and administrative		(36)		(29)		31		51
Equity contracts	Selling, general and administrative		—		9		—		(20)
Total		$	(25)	$	(11)	$	32	$	42

		Nine Months Ended September 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	$	(5)	$	—	$	40	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		(3)		3		(47)		12
Interest rate contracts - manage exposure for outstanding debt	Interest expense		9		—		5		(7)
Currency contracts - manage currency exposure	Selling, general and administrative		12		27		34		49
Equity contracts	Selling, general and administrative		—		12		—		(5)
Total		$	13	$	42	$	32	$	49

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

	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions)	2024		2023		2024		2023
Amounts reclassified into earnings:
Commodity contracts	$	(8)	$	2	$	8	$	7
Interest rate contracts		(3)		(3)		(9)		(5)
Currency exchange contracts		36		(31)		(12)		(34)
Change in fair value of hedges:
Commodity contracts		(16)		(35)		(6)		(11)
Interest rate contracts		(14)		6		2		28
Currency exchange contracts		(34)		31		11		29
Net investment contracts		(20)		—		(20)		—
Currency and tax impacts		16		11		7		(1)
	$	(43)	$	(19)	$	(19)	$	13