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Financial Instruments
 12 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Instruments FINANCIAL INSTRUMENTS
Fair Value
Accounting guidance on fair value measurements specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. These two types of inputs create the following fair value hierarchy:
•Level 1 — Quoted prices for identical instruments in active markets.
•Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.
•Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The Company determines the fair value of structured liabilities (where performance is linked to structured interest rates, inflation or currency risks) using the London Interbank Offer Rate (“LIBOR”) swap curve and forward interest and exchange rates at period end. Such instruments are classified as Level 2 based on the observability of significant inputs to the model. The Company does not have any instruments classified as Level 3, other than those included in pension asset trusts included in Note 15. These valuations take into consideration the Company's credit risk and its counterparties’ credit risk.
The carrying value and the estimated fair values of financial instruments at December 31 consisted of the following:
 20212020
(DOLLARS IN MILLIONS)Carrying ValueFair
Value		Carrying ValueFair
Value
LEVEL 1
Cash and cash equivalents(1)
$711 $711 $650 $650 
2025 Notes(6)
1,001 968 — — 
2027 Notes(6)
1,218 1,180 — — 
2030 Notes(6)
1,511 1,466 — — 
2040 Notes(6)
775 762 — — 
2050 Notes(6)
1,572 1,556 — — 
LEVEL 2
Credit facilities and bank overdrafts(2)
7 7 2 2 
Derivatives
Derivative assets(3)
— — 1 1 
Derivative liabilities(3)
7 7 29 29 
Commercial paper(2)
324 324 — — 
Long-term debt:
2021 Euro Notes(4)
— — 368 370 
2022 Notes(4)
300 300 — — 
2023 Notes(4)
300 308 299 316 
2024 Euro Notes(4)
565 585 614 648 
2026 Euro Notes(4)
900 960 978 1,061 
2028 Notes(4)
397 452 397 472 
2047 Notes(4)
494 585 494 608 
2048 Notes(4)
786 1,026 786 1,059 
2018 Term Loan Facility(2)
— — 240 240 
2022 Term Loan Facility(2)
— — 199 200 
2024 Term Loan Facility(7)
625 625 — — 
2026 Term Loan Facility(7)
625 625 — — 
Amortizing Notes(5)
— — 36 37 
_______________________
(1)The carrying amount of cash and cash equivalents approximates fair value due to the short maturity of those instruments.
(2)The carrying amount approximates fair value as the interest rate is reset frequently based on current market rates as well as the short maturity of those instruments.
(3)The carrying amount approximates fair value as the instruments are marked-to-market and held at fair value on the Consolidated Balance Sheets.
(4)The fair value of the Company's long-term debt was calculated using discounted cash flows applying current interest rates and current credit spreads based on its own credit risk.
(5)The fair value of the Amortizing Notes of the TEUs was based on the most recently quoted price for the outstanding securities, adjusted for any known significant deviation in value. The estimated fair value of these long-term obligations is not necessarily indicative of the amount that would be realized in a current market exchange.
(6)The fair value of the Notes is based on marketed quoted price as there is an active market for the Notes and observable market data and inputs.
(7)The carrying amount approximates fair value as the Term Loans were assumed at fair value and the interest rate is reset frequently based on current market rates.
Derivatives
Forward Currency Forward Contracts
The Company periodically enters into foreign currency forward contracts with the objective of reducing exposure to cash flow volatility associated with its intercompany loans, foreign currency receivables and payables and anticipated purchases of certain raw materials used in operations. These contracts generally involve the exchange of one currency for a second currency at a future date, have maturities not exceeding twelve months and are with counterparties which are major international financial institutions.
Commodity Contracts
The Company utilizes options, futures and swaps that are not designated as hedging instruments to reduce exposure to commodity price fluctuations on purchases of inventory such as soybeans, soybean oil and soybean meal.
Cash Flow Hedges
The Company entered into several forward currency contracts which qualified as cash flow hedges. The objective of these hedges is to protect against the currency risk associated with forecasted U.S. dollar ("USD") denominated raw material purchases made by Euro ("EUR") functional currency entities which result from changes in the EUR/USD exchange rate. The effective portions of cash flow hedges are recorded in OCI as a component of Gains/(Losses) on derivatives qualifying as hedges in the accompanying Consolidated Statements of Income and Comprehensive Income (Loss). Realized gains/(losses) in AOCI related to cash flow hedges of raw material purchases are recognized as a component of Cost of goods sold in the accompanying Consolidated Statements of Income and Comprehensive Income (Loss) in the same period as the related costs are recognized.
Hedges Related to Issuances of Debt
Subsequent to the issuance of the 2021 Euro Notes and 2026 Euro Notes during the third quarter of 2018, the Company designated the debt as a hedge of a portion of its net European investments. Accordingly, the change in the value of the debt that is attributable to foreign exchange movements is recorded in OCI as a component of foreign currency translation adjustments in the accompanying Consolidated Statements of Income and Comprehensive Income (Loss).
Subsequent to the issuance of the 2024 Euro Notes during the first quarter of 2016, the Company designated the debt as a hedge of a portion of its net European investments. Accordingly, the change in the value of the debt that is attributable to foreign exchange movements is recorded in OCI as a component of foreign currency translation adjustments in the accompanying Consolidated Statements of Income and Comprehensive Income (Loss).
During the first quarter of 2016, the Company entered into and terminated two Euro interest rate swap agreements to hedge the anticipated issuance of fixed-rate debt. These swaps were designated as cash flow hedges. The effective portions of cash flow hedges are recorded in OCI as a component of Losses on derivatives qualifying as hedges in the accompanying Consolidated Statements of Income and Comprehensive Income (Loss). The Company incurred a loss of €3 million ($3 million) due to the termination of these swaps. The loss is being amortized as interest expense over the life of the 2024 Euro Notes as discussed in Note 9.
During the fourth quarter of 2016 and the first quarter of 2017, the Company entered into interest rate swap agreements to hedge the anticipated issuance of fixed-rate debt, which are designated as cash flow hedges. The various hedge instruments were settled upon issuance of the debt on May 18, 2017 and resulted in a loss of approximately $5 million. As discussed in Note 9, the loss is being amortized as interest expense over the life of the 2047 Notes.
Cross Currency Swaps
During the third quarter of 2019, the Company entered into a transaction to unwind the four cross currency swaps designated as net investment hedges issued in the fourth quarter of 2018 and received proceeds of $34 million, including $8 million of interest income. The gain arising from the termination of the swaps has been included as a component of Accumulated other comprehensive loss. Following the termination of the existing swaps, (during the third quarter of 2019,) the Company entered into four new EUR/USD cross currency swaps that mature through May 2023. The swaps all qualified as net investment hedges in order to mitigate a portion of the Company's net European investments from foreign currency risk. During the third quarter of 2020, the Company entered into a transaction to unwind two of the swaps issued in the third quarter of 2019 and paid proceeds of $15 million, net of accrued interest receivable of $2 million. The loss arising from the termination of the swaps has been included as a component of accumulated other comprehensive loss. As of December 31, 2021, the two remaining swaps were in a net liability position with an aggregate fair value of $5 million which was classified as other current liabilities. Changes in fair value related to cross currency swaps are recorded in OCI.
The following table shows the notional amount of the Company’s derivative instruments outstanding as of December 31, 2021 and December 31, 2020:
December 31,
(DOLLARS IN MILLIONS)20212020
Foreign currency contracts$46 $221 
Commodity contracts10 — 
Cross currency swaps300 300 
The following tables show the Company’s derivative instruments measured at fair value (Level 2 of the fair value hierarchy) as reflected in the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020:
 December 31, 2021
(DOLLARS IN MILLIONS)Fair Value of Derivatives
Designated as Hedging
Instruments		Fair Value of Derivatives Not Designated as Hedging InstrumentsTotal Fair Value
Derivative assets(1)
Foreign currency contracts$— $— $— 
Derivative liabilities(2)
Foreign currency contracts$— $2 $2 
Cross currency swaps5 — 5 
Total derivative liabilities$5 $2 $7 
 December 31, 2020
(DOLLARS IN MILLIONS)Fair Value of Derivatives Designated as Hedging InstrumentsFair Value of Derivatives Not Designated as Hedging InstrumentsTotal Fair Value
Derivative assets(1)
Foreign currency contracts$— $1 $1 
Derivative liabilities(2)
Foreign currency contracts$6 $— $6 
Cross currency swaps23 — 23 
Total derivative liabilities$29 $— $29 
_______________________
(1)Derivative assets are recorded to Prepaid expenses and other current assets in the Consolidated Balance Sheets.
(2)Derivative liabilities are recorded as Other current liabilities in the Consolidated Balance Sheets.
The following table shows the effect of the Company’s derivative instruments which were not designated as hedging instruments in the Consolidated Statements of Income and Comprehensive Income (Loss) for the years ended December 31, 2021 and December 31, 2020:
(DOLLARS IN MILLIONS)Amount of Gain (Loss)
For the year ended
December 31,		Location of Gain (Loss)
Recognized in
Income on Derivative
20212020
Foreign currency contracts$6 $9 Other (income) expense, net
These net gains (losses) mostly offset any recognized gains (losses) arising from the revaluation of the related intercompany loans during the same respective periods.
The following table shows the effect of the Company’s derivative instruments designated as cash flow and net investment hedging instruments, net of tax, in the Consolidated Statements of Income and Comprehensive Income (Loss) for the years ended December 31, 2021 and December 31, 2020:
 Amount of Gain (Loss)
Recognized in OCI on Derivative
(Effective Portion)		Location of Gain
(Loss) Reclassified
from AOCI into Income
(Effective Portion)		Amount of Gain (Loss) Reclassified from AOCI
into Income
(Effective Portion)
 For the years ended
December 31,		For the years ended
December 31,
(DOLLARS IN MILLIONS)2021202020212020
Derivatives in Cash Flow Hedging Relationships:
Foreign currency contracts$7 $(10)Cost of goods sold$(6)$5 
Interest rate swaps (1)
1 1 Interest expense(1)(1)
Derivatives in Net Investment Hedging Relationships:
Cross currency swaps14 (13)N/A— — 
Non-Derivatives in Net Investment Hedging Relationships:
2024 Euro Notes38 (42)N/A— — 
2021 Euro Notes & 2026 Euro Notes72 (92)N/A— — 
Total$132 $(156)$(7)$4 
_______________________
(1)Interest rate swaps were entered into as pre-issuance hedges for the Company's bond offerings.
The ineffective portion of the above noted cash flow hedges and net investment hedges was not material for the years ended December 31, 2021 and 2020.
At December 31, 2021, based on current market rates, the Company does not expect any derivative losses (net of tax), included in AOCI, to be reclassified into earnings within the next 12 months.