Financial Instruments and Risk Management (Tables)

6 Months Ended

Jun. 30, 2025

Financial Instruments and Risk Management

Schedule of additional information related to the commercial risk management instruments

($ in millions)	June 30, 2025
Commercial risk area	Commodity		Currency		Interest Rate		Net Investment
Notional amount of contracts	$	1,586	$	3,064	$	600	€	1,050
Net gain (loss) included in AOCI, after-tax		(11)		(3)		1		(90)
Net gain (loss) included in AOCI, after-tax, expected to be recognized in net earnings within the next 12 months		(11)		(3)		2		—
Longest duration of forecasted hedge transactions in years		2		2		2		4

Schedule of fair value of derivative instruments

		June 30, 2025
($ in millions)	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Total
Assets:
Commodity contracts		$	28	$	—	$	28
Currency contracts			—		24		24
Interest rate and other contracts			3		2		5
Total current derivative contracts	Other current assets	$	31	$	26	$	57
Commodity contracts		$	2	$	—	$	2
Currency contracts			—		1		1
Total noncurrent derivative contracts	Other noncurrent assets	$	2	$	1	$	3
Liabilities:
Commodity contracts		$	36	$	9	$	45
Currency contracts			48		54		102
Total current derivative contracts	Other current liabilities	$	84	$	63	$	147
Commodity contracts		$	1	$	—	$	1
Interest rate and other contracts			2		—		2
Net investment hedge			110		—		110
Total noncurrent derivative contracts	Other noncurrent liabilities	$	113	$	—	$	113

		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
Other contracts			—		12		12
Total noncurrent derivative contracts	Other noncurrent liabilities	$	1	$	12	$	13

Schedule of impact on earnings from derivative instruments

		Three Months Ended June 30,
		2025				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		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	$	17	$	—	$	(19)	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		(1)		6		4		(9)
Interest rate contracts - manage exposure for outstanding debt	Interest expense		3		—		3		—
Currency contracts - manage currency exposure	Selling, general and administrative		(73)		(99)		16		29
Equity contracts	Selling, general and administrative		—		4		—		(11)
Total		$	(54)	$	(89)	$	4	$	9

		Six Months Ended June 30,
		2025				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		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	$	12	$	—	$	(6)	$	—
Commodity contracts - manage exposure to supplier pricing	Cost of sales		2		6		(10)		(6)
Interest rate contracts - manage exposure for outstanding debt	Interest expense		3		—		6		—
Currency contracts - manage currency exposure	Selling, general and administrative		(101)		(170)		48		56
Equity contracts	Selling, general and administrative		—		(1)		—		3
Total		$	(84)	$	(165)	$	38	$	53

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

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2025		2024		2025		2024
Amounts reclassified into earnings:
Commodity contracts	$	(16)	$	15	$	(14)	$	16
Interest rate contracts		(3)		(3)		(3)		(6)
Currency exchange contracts		73		(16)		101		(48)
Change in fair value of hedges:
Commodity contracts		(19)		9		(19)		10
Interest rate contracts		(2)		4		(6)		16
Currency exchange contracts		(69)		16		(97)		45
Net investment hedge		(84)		—		(106)		—
Currency and tax impacts		9		(6)		8		(9)
	$	(111)	$	19	$	(136)	$	24