Financial Instruments and Risk Management (Tables)

3 Months Ended

Mar. 31, 2025

Financial Instruments and Risk Management

Schedule of additional information related to the commercial risk management instruments


($ in millions)		March 31, 2025
Commercial risk area		Commodity			Currency			Interest Rate			Net Investment

Notional amount of contracts		$	1,398		$	2,857		$	600		€	1,050
Net gain (loss) included in AOCI, after-tax			15			(3)			3			(6)
Net gain (loss) included in AOCI, after-tax, expected to be recognized in net earnings within the next 12 months			15			(4)			3			—

Longest duration of forecasted hedge transactions in years			2			2			2			4

Schedule of fair value of derivative instruments


			March 31, 2025
($ in millions)	Balance Sheet Location		Derivatives Designated as Hedging Instruments			Derivatives not Designated as Hedging Instruments			Total

Assets:
Commodity contracts			$	31		$	—		$	31
Currency contracts				22			9			31
Interest rate and other contracts				4			—			4
Total current derivative contracts	Other current assets		$	57		$	9		$	66

Currency contracts			$	—		$	1		$	1
Interest rate and other contracts				1			—			1
Total noncurrent derivative contracts	Other noncurrent assets		$	1		$	1		$	2

Liabilities:
Commodity contracts			$	17		$	—		$	17
Currency contracts				—			31			31
Interest rate and other contracts				—			2			2
Total current derivative contracts	Other current liabilities		$	17		$	33		$	50

Commodity contracts			$	1		$	—		$	1
Net investment hedge				9			—			9
Total noncurrent derivative contracts	Other noncurrent liabilities		$	10		$	—		$	10


			December 31, 2024
($ in millions)	Balance Sheet Location		Derivatives Designated as Hedging Instruments			Derivatives not Designated as Hedging Instruments			Total

Assets:
Commodity contracts			$	26		$	—		$	26
Currency contracts				—			36			36
Interest rate and other contracts				4			—			4
Total current derivative contracts	Other current assets		$	30		$	36		$	66

Currency contracts			$	51		$	—		$	51
Interest rate and other contracts				6			—			6
Net investment hedge				20			—			20
Total noncurrent derivative contracts	Other noncurrent assets		$	77		$	—		$	77

Liabilities:
Commodity contracts			$	7		$	—		$	7
Currency contracts				—			13			13
Total current derivative contracts	Other current liabilities		$	7		$	13		$	20

Commodity contracts			$	1		$	—		$	1
Other Contracts				—			12			12
Total noncurrent derivative contracts	Other noncurrent liabilities		$	1		$	12		$	13

Schedule of impact on earnings from derivative instruments


				Three Months Ended March 31,
				2025						2024
($ in millions)		Location of Gain (Loss) Recognized in Earnings on Derivatives		Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss)			Gain (Loss) on Derivatives not Designated as Hedge Instruments			Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss)			Gain (Loss) on Derivatives not Designated as Hedge Instruments

Commodity contracts - manage exposure to customer pricing		Net sales		$	(5)		$	—		$	13		$	—
Commodity contracts - manage exposure to supplier pricing		Cost of sales			3			—			(14)			3
Interest rate contracts - manage exposure for outstanding debt		Interest expense			—			—			3			—
Currency contracts - manage currency exposure		Selling, general and administrative			(28)			(71)			32			27
Equity contracts		Selling, general and administrative			—			(5)			—			14
Total				$	(30)		$	(76)		$	34		$	44

Schedule of changes in accumulated other comprehensive earnings (loss) for effective derivatives


		Three Months Ended March 31,
($ in millions)		2025			2024

Amounts reclassified into earnings:
Commodity contracts		$	2		$	1
Interest rate contracts			—			(3)
Currency exchange contracts			28			(32)
Change in fair value of hedges:
Commodity contracts			—			1
Interest rate contracts			(4)			12
Currency exchange contracts			(28)			29
Net investment contracts			(30)			—
Currency and tax impacts			7			(3)
		$	(25)		$	5