Financial Instruments, Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2021

Financial Instruments, Derivatives and Hedging Activities

Schedule of cash flow hedges included in AOCI

Derivatives in Cash Flow Hedging Relationships		Gains (Losses) included in AOCL
(in millions)		March 31, 2021	December 31, 2020
Commodity contracts, net of income tax effect of $24 and $16, respectively	$	67	$	47
Foreign currency contracts, net of income tax effect of $1 and $ — , respectively		-		(1)
Interest rate contracts, net of income tax effect of $1		(4)		(4)
Total	$	63	$	42

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

	Fair Value of Hedging Instruments as of March 31, 2021
	Designated Hedging Instruments (in millions)						Non-Designated Hedging Instruments (in millions)
Balance Sheet Location		Commodity Contracts		Foreign Currency Contracts	Total			Commodity Contracts		Foreign Currency Contracts	Total
Accounts receivable, net	$	54	$	1	$	55	$	3	$	7	$	10
Other assets		1		1		2		—		1		1
Assets		55		2		57		3		8		11
Accounts payable and accrued liabilities		2		4		6		1		10		11
Non-current liabilities		1		—		1		—		1		1
Liabilities		3		4		7		1		11		12
Net (Liabilities)/Assets	$	52	$	(2)	$	50	$	2	$	(3)	$	(1)

	Fair Value of Hedging Instruments as of December 31, 2020
	Designated Hedging Instruments (in millions)						Non-Designated Hedging Instruments (in millions)
Balance Sheet Location		Commodity Contracts		Foreign Currency Contracts	Total			Commodity Contracts		Foreign Currency Contracts	Total
Accounts receivable, net	$	50	$	7	$	57	$	3	$	4	$	7
Other assets		4		—		4		—		1		1
Assets		54		7		61		3		5		8
Accounts payable and accrued liabilities		4		12		16		1		8		9
Non-current liabilities		2		—		2		—		2		2
Liabilities		6		12		18		1		10		11
Net (Liabilities)/Assets	$	48	$	(5)	$	43	$	2	$	(5)	$	(3)

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

Derivatives in Cash Flow	Gains (Losses) Recognized  in OCL on Derivatives				Income	Gains (Losses) Reclassified from AOCL into Income
Hedging Relationships	Three Months Ended March 31,				Statement	Three Months Ended March 31,
(in millions)	2021		2020		Location	2021		2020
Commodity contracts	$	27	$	(37)	Cost of sales	$	(1)	$	7
Foreign currency contracts		2		(5)	Net sales/Cost of sales		2		(1)
Interest rate contracts		—		(4)	Financing costs, net		—		—
Total	$	29	$	(46)		$	1	$	6

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	2021		2020		of Hedged Items	2021		2020
Interest rate contracts	Financing costs, net	$	—	$	3	Financing costs, net	$	—	$	(3)

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	2021		2020		of Hedged Items	2021		2020
Interest rate contracts	Financing costs, net	$	—	$	3	Financing costs, net	$	—	$	(3)

Schedule of fair value of financial instruments and derivatives

	As of March 31, 2021								As of December 31, 2020
(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	$	12	$	12	$	—	$	—	$	11	$	11	$	—	$	—
Derivative assets		68		53		15		—		69		53		16		—
Derivative liabilities		19		2		17		—		29		3		26		—
Long-term debt		1,919		—		1,919		—		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.