DERIVATIVE INSTRUMENTS AND HEDGING

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING

NOTE 15 - DERIVATIVE INSTRUMENTS AND HEDGING

We are exposed to fluctuations in market prices of raw materials and energy sources. We may use cash-settled commodity swaps to hedge the market risk associated with the purchase of certain of our raw materials and energy requirements. Our hedging strategy is to reduce the effect on earnings from the price volatility of these various commodity exposures, including timing differences between when we incur raw material commodity costs and when we receive sales surcharges from our customers based on those raw materials. Independent of any hedging activities, price changes in any of these commodity markets could negatively affect operating costs.

Our commodity contracts are designated as cash flow hedges for accounting purposes, and we record the gains and losses for the derivatives in Accumulated other comprehensive income until we reclassify them into Cost of goods sold when we recognize the associated underlying operating costs. Refer to NOTE 17 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) for further information.

Our commodity contracts are classified as Level 2 as values were determined using a market approach based upon quoted prices for similar assets in active markets or other inputs that were observable.

The following table presents the notional amount of our outstanding hedge contracts:

			Notional Amount
			December 31,
Commodity Contracts	Unit of Measure	Maturity Dates	2022	2021
Natural Gas	MMBtu	January 2023 - May 2025	127,790,000	92,591,000
Zinc	Metric tons	Not Applicable	—	16,092
Electricity	Megawatt hours	January 2023 - December 2023	432,043	—
Tin	Metric tons	January 2023 - December 2023	180	—

The following table presents the fair value of our cash flow hedges and the classification on the Statements of Consolidated Financial Position:

	December 31,
Balance Sheet Location (In millions)	2022		2021
Other current assets	$	15	$	40
Other non-current assets	30		—
Other current liabilities	(87)		(10)
Other non-current liabilities	(10)		(4)