Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

For further information on the Company’s derivative and hedge accounting policies, see Note 1—General and Summary of Significant Accounting Policies—Derivatives and Hedging Activities of Item 8.—Financial Statements and Supplementary Data in the 2022 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, 2023, 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	$	6,413	2059
Cross-currency swaps (Brazilian real)	404		2026
Foreign Currency:
Chilean peso	144		2025
Euro	141		2025
Colombian peso	50		2024
Brazilian real	25		2024
Mexican peso	11		2024
Argentine peso	4		2026


Commodity Derivatives	Maximum Notional	Latest Maturity
Natural Gas (in MMBtu)	103	2030
Power (in MWhs)	13	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, 2023						December 31, 2022
Assets	Designated		Not Designated		Total		Designated		Not Designated		Total
Interest rate derivatives	$	192	$	—	$	192	$	313	$	1	$	314

Foreign currency derivatives	28		56		84		27		59		86
Commodity derivatives	—		246		246		—		245		245
Total assets	$	220	$	302	$	522	$	340	$	305	$	645
Liabilities
Interest rate derivatives	$	46	$	—	$	46	$	6	$	—	$	6
Cross-currency derivatives	50		—		50		42		—		42
Foreign currency derivatives	5		12		17		9		11		20
Commodity derivatives	76		256		332		59		347		406
Total liabilities	$	177	$	268	$	445	$	116	$	358	$	474


	March 31, 2023				December 31, 2022
Fair Value	Assets		Liabilities		Assets		Liabilities
Current	$	295	$	161	$	271	$	168
Noncurrent	227		284		374		306
Total	$	522	$	445	$	645	$	474

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,
		2023		2022
Cash flow hedges
Gains (losses) recognized in AOCL
Interest rate derivatives		$	(138)	$	304

Foreign currency derivatives		8		12
Commodity derivatives		(23)		29
Total		$	(153)	$	345
Gains (losses) reclassified from AOCL into earnings
Interest rate derivatives		$	36	$	(27)


Commodity derivatives		14		(1)
Total		$	50	$	(28)
Gains (losses) on fair value hedging relationship

Cross-currency derivatives		$	(53)	$	(55)
Hedged items		50		57
Total		$	(3)	$	2
Gains reclassified from AOCL to earnings due to discontinuance of hedge accounting		$	1	$	—


Gains (losses) recognized in earnings related to

Not designated as hedging instruments:
Interest rate derivatives		$	—	$	2
Foreign currency derivatives		(4)		(19)
Commodity derivatives and other		65		(13)
Total		$	61	$	(30)

AOCL is expected to decrease pre-tax income from continuing operations for the twelve months ended March 31, 2024 by $15 million, primarily due to interest rate derivatives.