Financial Instruments and Risk Management (Tables)

12 Months Ended

Dec. 31, 2024

Financial Instruments and Risk Management

Schedule of additional information related to the commercial risk management instruments

($ in millions)	December 31, 2024
Commercial risk area	Commodity			Currency		Interest Rate		Net Investment
Notional amount of contracts	$	1,256	(a)	$	2,404	$	600	€	1,050
Net gain (loss) included in AOCI, after-tax		15	(b)		(5)		7		17
Net gain (loss) included in AOCI, after-tax, expected to be recognized in net earnings within the next 12 months		14	(b)		9		3		—
Longest duration of forecasted hedge transactions in years		1			2		3		5

(a) Substantially all aluminum contracts received hedge accounting treatment as of December 31, 2024.

(b) Substantially all of this gain (loss) will be offset by pricing changes in sales and purchase contracts.

Schedule of fair value of derivative instruments

		December 31, 2024
($ in millions)	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	26	$	—	$	26
Currency contracts			—		36		36
Interest rate and other contracts			4		—		4
Total current derivative contracts	Other current assets	$	30	$	36	$	66
Currency contracts		$	51	$	—	$	51
Interest rate and other contracts			6		—		6
Net investment hedge			20		—		20
Total noncurrent derivative contracts	Other noncurrent assets	$	77	$	—	$	77
Liabilities:
Commodity contracts		$	7	$	—	$	7
Currency contracts			—		13		13
Total current derivative contracts	Other current liabilities	$	7	$	13	$	20
Commodity contracts		$	1	$	—	$	1
Currency contracts			—		—		—
Other contracts			—		12		12
Total noncurrent derivative contracts	Other noncurrent liabilities	$	1	$	12	$	13

		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
Commodity 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
Commodity contracts		$	1	$	—	$	1
Total noncurrent derivative contracts	Other noncurrent liabilities	$	1	$	—	$	1

Schedule of impact on earnings from derivative instruments

		Year Ended December 31, 2024
($ 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
Commodity contracts - manage exposure to customer pricing	Net sales	$	(3)	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		(4)		(2)
Interest rate contracts - manage exposure for outstanding debt	Interest expense		11		—
Currency contracts - manage currency exposure	Selling, general and administrative		74		132
Equity contracts	Selling, general and administrative		—		(6)
Total		$	78	$	124

		Year Ended December 31, 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
Commodity contracts - manage exposure to customer pricing	Net sales	$	43	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		(70)		14
Interest rate contracts - manage exposure for outstanding debt	Interest expense		8		(8)
Currency contracts - manage currency exposure	Selling, general and administrative		5		(8)
Equity contracts	Selling, general and administrative		—		11
Total		$	(14)	$	9

		Year Ended December 31, 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
Commodity contracts - manage exposure to customer pricing	Net sales	$	59	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		119		33
Interest rate contracts - manage exposure for outstanding debt	Interest expense		2		11
Currency contracts - manage currency exposure	Selling, general and administrative		81		94
Equity contracts	Selling, general and administrative		—		(114)
Total		$	261	$	24

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

	Years Ended December 31,
($ in millions)	2024		2023		2022
Amounts reclassified into earnings:
Commodity contracts	$	7	$	27	$	(177)
Interest rate contracts		(11)		(8)		(1)
Currency exchange contracts		(74)		(5)		(83)
Change in fair value of hedges:
Commodity contracts		17		(3)		13
Interest rate contracts		15		14		1
Currency exchange contracts		68		—		66
Net investment contracts		22		—		—
Currency and tax impacts		(11)		(6)		40
	$	33	$	19	$	(141)