Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIESFor further information on the Company’s derivative and hedge accounting policies, see Note 1—General and Summary of Significant Accounting Policies—Derivative Instruments and Hedging Activities of Item 8.—Financial Statements and Supplementary Data in the 2021 Form 10-K.

Volume of Activity — The following tables present the Company’s maximum notional (in millions) over the remaining contractual period by type of derivative as of March 31, 2022, regardless of whether they are in qualifying cash flow hedging relationships, and the dates through which the maturities for each type of derivative range:

Interest Rate and Foreign Currency Derivatives	Maximum Notional Translated to USD		Latest Maturity
Interest rate	$	5,346	2059
Cross-currency swaps (Brazilian real)	254		2026
Foreign Currency:
Colombian peso	163		2024
Euro	138		2024
Mexican peso	53		2023
Brazilian real	35		2024
Chilean peso	33		2024
Argentine peso	10		2026

Commodity Derivatives	Maximum Notional	Latest Maturity
Natural Gas (in MMBtu)	105	2029
Power (in MWhs)	15	2040
Coal (in Tons or Metric Tons)	6	2027

Accounting and Reporting — Assets and Liabilities — The following tables present the fair value of assets and liabilities related to the Company’s derivative instruments as of the periods indicated (in millions):

Fair Value	March 31, 2022						December 31, 2021
Assets	Designated		Not Designated		Total		Designated		Not Designated		Total
Interest rate derivatives	$	160	$	—	$	160	$	53	$	—	$	53
Cross-currency derivatives	—		—		—		5		—		5
Foreign currency derivatives	25		88		113		28		109		137
Commodity derivatives	37		101		138		6		32		38
Total assets	$	222	$	189	$	411	$	92	$	141	$	233
Liabilities
Interest rate derivatives	$	127	$	3	$	130	$	288	$	6	$	294
Cross-currency derivatives	55		—		55		11		—		11
Foreign currency derivatives	8		15		23		23		12		35
Commodity derivatives	19		100		119		11		33		44
Total liabilities	$	209	$	118	$	327	$	333	$	51	$	384

	March 31, 2022				December 31, 2021
Fair Value	Assets		Liabilities		Assets		Liabilities
Current	$	170	$	90	$	85	$	83
Noncurrent	241		237		148		301
Total	$	411	$	327	$	233	$	384

Earnings and Other Comprehensive Income (Loss) — The following table presents the pre-tax gains (losses) recognized in AOCL and earnings related to all derivative instruments for the periods indicated (in millions):

	Three Months Ended March 31,
	2022		2021
Cash flow hedges
Gains (losses) recognized in AOCL
Interest rate derivatives	$	304	$	309
Cross-currency derivatives	—		2
Foreign currency derivatives	12		(1)
Commodity derivatives	29		—
Total	$	345	$	310
Losses reclassified from AOCL into earnings
Interest rate derivatives	$	(27)	$	(24)
Cross-currency derivatives	—		(1)
Foreign currency derivatives	—		(3)
Commodity derivatives	(1)		(2)
Total	$	(28)	$	(30)
Gains (losses) on fair value hedging relationship
Cross-currency derivatives	$	(55)	$	—
Hedged items	57		—
Total	$	2	$	—
Loss reclassified from AOCL to earnings due to impairment of assets	$	—	$	(4)
Gains (losses) recognized in earnings related to
Not designated as hedging instruments:
Interest rate derivatives	$	2	$	60
Foreign currency derivatives	(19)		(11)
Commodity derivatives and other	(13)		(93)
Total	$	(30)	$	(44)

AOCL is expected to decrease pre-tax income from continuing operations for the twelve months ended March 31, 2023 by $11 million, primarily due to interest rate derivatives.