Financial Instruments, Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2020

Financial Instruments, Derivatives and Hedging Activities

Schedule of cash flow hedges included in AOCI

Derivatives in Cash Flow Hedging Relationships	Gains (Losses) included in AOCI
(in millions)	March 31, 2020		December 31, 2019
Commodity contracts, net of income tax effect of $13 and $5, respectively	$	(33)	$	(11)
Foreign currency contracts, net of income tax effect of $ — and $1, respectively		(2)		3
Interest rate contracts, net of income tax effect of $1 and $ — , respectively		(4)		(1)
Total	$	(39)	$	(9)

Schedule of location and amount of assets and liabilities reported in balance sheet

Schedule of fair value hedges

Line item in the statement of financial position in which the hedged item is included (in millions)	Carrying Amount of the Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets/(Liabilities)
Balance sheet date as of	March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019
Interest Rate Contracts:
Long-Term Debt	$	(204)	$	(201)	$	(4)	$	(1)

Schedule of amount of gains and losses recognized in OCI and location and income statement location

Derivatives in Cash Flow	Gains (Losses) Recognized  in OCI on Derivatives				Income	Gains (Losses) Reclassified from AOCI into Income
Hedging Relationships	Three Months Ended March 31,				Statement	Three Months Ended March 31,
(in millions)	2020		2019		Location	2020		2019
Commodity contracts	$	(37)	$	(10)	Cost of sales	$	7	$	2
Foreign currency contracts		(5)		(2)	Net sales/Cost of sales		(1)		(3)
Interest rate contracts		(4)		—	Financing costs, net		—		(1)
Total	$	(46)	$	(12)		$	6	$	(2)

Schedule of location and amount of gain (loss) recognized in income

Derivatives in Fair Value Hedging	Income Statement Location of	Gains (Losses) Recognized in Income		Income Statement	Gains (Losses) Recognized in Income
Relationships	Derivatives Designated as	Three Months Ended March 31,		Location	Three Months Ended March 31,
(in millions)	Hedging Instruments	2020	2019	of Hedged Items	2020	2019

Interest rate contracts Financing costs, net $ 3 $ — Financing costs, net $ (3) $ —

Schedule of fair value of financial instruments and derivatives

	As of March 31, 2020								As of December 31, 2019
(in millions)	Total		Level 1 (a)		Level 2 (b)		Level 3 (c)		Total		Level 1 (a)		Level 2 (b)		Level 3 (c)
Available for sale securities	$	11	$	11	$	—	$	—	$	13	$	13	$	—	$	—
Derivative assets		32		1		31		—		24		7		17		—
Derivative liabilities		77		34		43		—		36		5		31		—
Long-term debt		1,914		—		1,914		—		1,751		—		1,751		—

(a) Level 1 inputs consist of quoted prices (unadjusted) in active markets for identical assets or liabilities.

(b) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 2 inputs are based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability or can be derived principally from or corroborated by observable market data.  

(c) Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.