Derivative financial instruments (Tables)

12 Months Ended

Dec. 31, 2023

Derivative financial instruments

Notional amount of outstanding derivatives

Type of derivative

Total notional amounts at December 31,

($ in millions)

2023

2022

2021

Foreign exchange contracts 

12,335

13,509

11,276

Embedded foreign exchange derivatives 

1,137

933

815

Cross-currency interest rate swaps

886

855

906

Interest rate contracts 

1,606

2,830

3,541

Total notional amounts at December 31,

Type of derivative

Unit

2023

2022

2021

Copper swaps 

metric tonnes

35,015

29,281

36,017

Silver swaps 

ounces

2,359,363

2,012,213

2,842,533

Steel swaps

metric tonnes

10,206

—

145

Aluminum swaps 

metric tonnes

5,900

6,825

7,125

Gain (loss) on fair value hedges

($ in millions)

2023

2022

2021

Gains (losses) recognized in Interest and other finance expense:

Interest rate contracts

Designated as fair value hedges

44

(91)

(55)

Hedged item

(45)

93

56

Cross-currency

Designated as fair value hedges

30

(134)

(37)

interest rate swaps

Hedged item

(40)

135

34

Gain (loss) on derivatives not designated in hedge relationships

($ in millions)

Gains (losses) recognized in income

Type of derivative not designated as a hedge

Location

2023

2022

2021

Foreign exchange contracts 

Total revenues

145

(56)

3

Total cost of sales

(71)

21

(53)

SG&A expenses

(1)

27

27

11

Non-order related research and 

development

(7)

—

(2)

Interest and other finance

expense

(240)

(128)

(173)

Embedded foreign exchange contracts 

Total revenues

18

(3)

(7)

Total cost of sales

1

(11)

(2)

Commodity contracts 

Total cost of sales

(3)

(47)

78

Other

Interest and other finance

expense

1

4

—

Total

(129)

(193)

(145)

(1) SG&A expenses represent “Selling, general and administrative expenses”.

Fair value of derivatives

Derivative assets

Derivative liabilities

Current in

Non-current

Current in

Non-current

“Other

in “Other

“Other

in “Other

current

non-current

current

non-current

December 31, 2023 ($ in millions)

assets”

assets”

liabilities”

liabilities”

Derivatives designated as hedging instruments:

Foreign exchange contracts 

—

—

5

2

Interest rate contracts 

—

—

18

—

Cross-currency interest rate swaps

—

—

—

230

Other

10

—

—

—

Total

10

—

23

232

Derivatives not designated as hedging instruments:

Foreign exchange contracts 

123

30

177

9

Commodity contracts 

8

—

3

—

Interest rate contracts 

1

—

1

—

Other equity contracts

4

—

—

—

Embedded foreign exchange derivatives 

23

5

26

5

Total

159

35

207

14

Total fair value

169

35

230

246

Derivative assets

Derivative liabilities

Current in

Non-current

Current in

Non-current

“Other

in “Other

“Other

in “Other

current

non-current

current

non-current

December 31, 2022 ($ in millions)

assets”

assets”

liabilities”

liabilities”

Derivatives designated as hedging instruments:

Foreign exchange contracts 

—

—

4

4

Interest rate contracts 

—

—

5

57

Cross-currency interest rate swaps

—

—

—

288

Other

15

—

—

—

Total

15

—

9

349

Derivatives not designated as hedging instruments:

Foreign exchange contracts 

140

21

80

5

Commodity contracts 

13

—

12

—

Interest rate contracts

5

—

3

—

Embedded foreign exchange derivatives 

11

6

17

13

Total

169

27

112

18

Total fair value

184

27

121

367

Offsetting arrangements

December 31, 2023 ($ in millions)

Gross amount of

Derivative liabilities

Cash

Non-cash

Type of agreement or 

recognized

eligible for set-off in

collateral

collateral

Net asset

similar arrangement

assets

case of default

received

received

exposure

Derivatives

176

(111)

—

—

65

Total

176

(111)

—

—

65

December 31, 2023 ($ in millions)

Gross amount of

Derivative liabilities

Cash

Non-cash

Type of agreement or 

recognized

eligible for set-off in

collateral

collateral

Net liability

similar arrangement

liabilities

case of default

pledged

pledged

exposure

Derivatives

445

(111)

—

—

334

Total

445

(111)

—

—

334

December 31, 2022 ($ in millions)

Gross amount of

Derivative liabilities

Cash

Non-cash

Type of agreement or 

recognized

eligible for set-off in

 collateral

collateral

Net asset

similar arrangement

assets

case of default

received

received

exposure

Derivatives

194

(96)

—

—

98

Total

194

(96)

—

—

98

December 31, 2022 ($ in millions)

Gross amount of

Derivative liabilities

Cash

Non-cash

Type of agreement or 

recognized

eligible for set-off in

 collateral

collateral

Net liability

similar arrangement

liabilities

case of default

pledged

pledged

exposure

Derivatives

458

(96)

—

—

362

Total

458

(96)

—

—

362