v3.20.2

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended
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Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Summary of outstanding derivative instruments | The notional amount is used to compute interest or other payment streams to be made under the contract and is a measure of the Company’s level of activity. The Company discloses derivative notional amounts on a gross basis.
(US$ in millions) | September 30, 2020 | December 31, 2019 | Unit of Measure
Hedging instrument type: |  |  |
Fair value hedges of interest rate risk |  |  |
| Carrying value of hedged debt | $ | 2,782 |  | $ | 2,279 |  | $ Notional
| Cumulative adjustment to long-term debt from application of hedge accounting | $ | 104 |  | $ | 37 |  | $ Notional
| Interest rate swap | $ | 2,687 |  | $ | 2,249 |  | $ Notional
Fair value hedges of currency risk |  |  |
| Carrying value of hedged debt | $ | 291 |  | $ | 281 |  | $ Notional
| Cross currency swap | $ | 291 |  | $ | 281 |  | $ Notional
Cash flow hedges of currency risk |  |  |
| Foreign currency forward | $ | 159 |  | $ | 99 |  | $ Notional
| Foreign currency option | $ | 115 |  | $ | 75 |  | $ Notional
Net investment hedges |  |  |
| Foreign currency forward | $ | 1,698 |  | $ | 928 |  | $ Notional
| Carrying value of non-derivative hedging instrument | $ | 933 |  | $ | 895 |  | $ Notional
The table below summarizes the volume of economic derivatives as of September 30, 2020 and December 31, 2019. For those contracts traded bilaterally through the OTC markets (e.g., forwards, forward rate agreements ("FRA") and swaps), the gross position is provided. For exchange traded (e.g., futures, FFAs and options) and cleared positions (e.g., energy swaps), the net position is provided.
| September 30, | December 31, |
| 2020 | 2019 | Unit of Measure
(US$ in millions) | Long | (Short) | Long | (Short)
Interest rate |  |  |  |  |
Swaps | $ | 2,236 |  | $ | (625) |  | $ | 4,062 |  | $ | (39) |  | $ Notional
FRAs | $ | 180 |  | $ | (180) |  | $ | 213 |  | $ | (418) |  | $ Notional
Currency |  |  |  |  |
Forwards | $ | 11,780 |  | $ | (13,526) |  | $ | 7,164 |  | $ | (9,983) |  | $ Notional
Swaps | $ | 471 |  | $ | (447) |  | $ | 191 |  | $ | (170) |  | $ Notional
Futures | $ | 28 |  | $ | — |  | $ | — |  | $ | (16) |  | $ Notional
Options | $ | 135 |  | $ | (194) |  | $ | 132 |  | $ | (157) |  | Delta
Agricultural commodities |  |  |  |  |
Forwards | 42,058,200 |  | (43,113,078) |  | 27,914,141 |  | (25,321,595) |  | Metric Tons
Swaps | — |  | — |  | — |  | (1,114,704) |  | Metric Tons
Futures | — |  | (12,165,453) |  | — |  | (1,960,051) |  | Metric Tons
Options | — |  | (574,239) |  | — |  | (115,232) |  | Metric Tons
Ocean freight |  |  |  |  |
FFA | 7,878 |  | — |  | — |  | (133) |  | Hire Days
FFA options | 285 |  | — |  | 42 |  | — |  | Hire Days
Natural gas |  |  |  |  |
Swaps | 525,118 |  | — |  | 215,640 |  | — |  | MMBtus
Futures | 10,985,000 |  | — |  | 2,802,500 |  | — |  | MMBtus
Energy - other |  |  |  |  |
Forwards | 5,534,290 |  | — |  | 5,534,290 |  | — |  | Metric Tons
Futures | 1,074 |  | — |  | — |  | — |  | Metric Tons
Swaps | 429,703 |  | — |  | 239,836 |  | — |  | Metric Tons
Other |  |  |  |  |
Swaps and futures | $ | 20 |  | $ | — |  | $ | 50 |  | $ | (14) |  | $ Notional
Summary of effect of derivative instruments designated as fair value hedges and undesignated derivative instruments on condensed consolidated statements of income | The tables below summarize the net effect of derivative instruments and hedge accounting on the condensed consolidated statements of income for the three and nine months ended September 30, 2020 and 2019.
|  | Gain (Loss) Recognized in Income on Derivative Instruments
|  | Three Months Ended September 30,
(US$ in millions) |  | 2020 | 2019
Income statement classification | Type of derivative |  |
Net sales |  |  |
Hedge accounting | Foreign currency | $ | (4) |  | $ | (2) |
Cost of goods sold |  |  |
Hedge accounting | Commodities | $ | — |  | $ | 10 |
Economic hedges | Foreign currency | (344) |  | (20) |
| Commodities | (403) |  | 190 |
| Other (1) | 51 |  | (27) |
Total Cost of goods sold |  | $ | (696) |  | $ | 153 |
Interest expense |  |  |
Hedge accounting | Interest rate | $ | 6 |  | $ | (3) |
Economic hedges | Interest rate | — |  | 1 |
Total Interest expense |  | $ | 6 |  | $ | (2) |
Foreign exchange gains (losses) |  |  |
Hedge accounting | Foreign currency | $ | 13 |  | $ | (1) |
Economic hedges | Foreign currency | 35 |  | (17) |
Total Foreign exchange gains (losses) |  | $ | 48 |  | $ | (18) |
Other comprehensive income (loss) |  |  |
Gains and losses on derivatives used as fair value hedges of foreign currency risk included in other comprehensive income (loss) during the period | $ | (1) |  | $ | — |
Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period | $ | (4) |  | $ | (10) |
Gains and losses on derivatives used as cash flow hedges of commodity price risk included in other comprehensive income (loss) during the period | $ | — |  | $ | 12 |
Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period | $ | 47 |  | $ | (10) |
Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period | $ | (40) |  | $ | 39 |
Amounts released from accumulated other comprehensive income (loss) during the period |  |
Cash flow hedge of foreign currency risk | $ | 3 |  | $ | (2) |
Cash flow hedge of commodity risk | $ | — |  | $ | (9) |
(1) Other includes the results from freight, energy and other derivatives.
|  | Gain (Loss) Recognized in Income on Derivative Instruments
|  | Nine Months Ended September 30,
(US$ in millions) |  | 2020 | 2019
Income statement classification | Type of derivative |  |
Net sales |  |  |
Hedge accounting | Foreign currency | $ | (10) |  | $ | — |
Cost of goods sold |  |  |
Hedge accounting | Commodities | $ | — |  | $ | 10 |
Economic hedges | Foreign currency | (1,459) |  | 146 |
| Commodities | 583 |  | 84 |
| Other (1) | 9 |  | 1 |
Total Cost of goods sold |  | $ | (867) |  | $ | 241 |
Interest expense |  |  |
Hedge accounting | Interest rate | $ | 8 |  | $ | (11) |
Economic hedges | Interest rate | — |  | (9) |
Total Interest expense |  | $ | 8 |  | $ | (20) |
Foreign exchange gains (losses) |  |  |
Hedge accounting | Foreign currency | $ | 23 |  | $ | 7 |
Economic hedges | Foreign currency | (202) |  | 14 |
Total Foreign exchange gains (losses) |  | $ | (179) |  | $ | 21 |
Other comprehensive income (loss) |  |  |
Gains and losses on derivatives used as fair value hedges of foreign currency risk included in other comprehensive income (loss) during the period | $ | (1) |  | $ | (2) |
Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period | $ | (21) |  | $ | (7) |
Gains and losses on derivatives used as cash flow hedges of commodity price risk included in other comprehensive income (loss) during the period | $ | — |  | $ | 20 |
Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period | $ | 100 |  | $ | (55) |
Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period | $ | (37) |  | $ | 44 |
Amounts released from accumulated other comprehensive income (loss) during the period |  |
Cash flow hedge of foreign currency risk | $ | 5 |  | $ | — |
Cash flow hedge of commodity risk | $ | — |  | $ | (9) |
(1) Other includes the results from freight, energy and other derivatives.

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- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624181-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5618551-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624171-113959 + Details
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- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624163-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5580258-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41620-113959 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5579245-113959 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41638-113959 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41678-113959 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41641-113959 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624171-113959 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5579240-113959 + Details
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