v3.22.1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 3 Months Ended
Mar. 31, 2022
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)March 31, 2022December 31, 2021Unit of
Measure
Hedging instrument type:
Fair value hedges of interest rate risk
Interest rate swap$3,888 $4,006 $ Notional
Cumulative adjustment to long-term debt from application of hedge accounting$(146)$— $ Notional
Carrying value of hedged debt$3,722 $3,990 $ Notional
Fair value hedges of currency risk
Cross currency swap$252 $267 $ Notional
Carrying value of hedged debt$252 $267 $ Notional
Cash flow hedges of currency risk
Foreign currency forward $188 $148 $ Notional
Foreign currency option $30 $60 $ Notional
Net investment hedges
Foreign currency forward $1,121 $1,020 $ Notional
The table below summarizes the volume of economic derivatives as of March 31, 2022 and December 31, 2021. For those contracts traded bilaterally through the OTC markets (e.g., forwards, forward rate agreements ("FRA"), swaps, and variable interests rate obligations), 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.
 March 31,December 31, 
 20222021Unit of
Measure
(US$ in millions)Long(Short)Long(Short)
Interest rate    
   Swaps$919 $(1,673)$2,924 $(2,506)$ Notional
   Futures$— $(248)$— $— $ Notional
Currency
   Forwards$10,896 $(10,459)$12,961 $(14,065)$ Notional
   Swaps$1,799 $(1,259)$1,362 $(1,422)$ Notional
   Futures$— $(2)$— $(8)$ Notional
   Options$107 $(91)$88 $(106)Delta
Agricultural commodities
   Forwards32,682,139 (31,661,439)29,329,244 (34,810,969)Metric Tons
   Swaps— (408,233)33,250 (502,652)Metric Tons
   Futures— (9,442,614)— (7,221,848)Metric Tons
   Options575,922 (109,187)218,106 (116,370)Metric Tons
Ocean freight
   FFA11,082 (22,126)12,010 (18,723)Hire Days
   FFA options467 — 548 — Hire Days
Natural gas
   Swaps— — 1,764,455 — MMBtus
   Futures6,667,500 — 5,147,500 — MMBtus
Energy - other
   Swaps1,813,236 (199,711)741,307 (426,476)Metric Tons
Electricity
   Swaps536,325 (169,355)670,973 (256,949)Mwh
Energy - CO2
   Futures216,000 — — — Metric Tons
Other
Swaps and futures$11 $(55)$20 $(585)$ 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 months ended March 31, 2022 and 2021.
  Gain (Loss) Recognized in
Income on Derivative Instruments
  Three Months Ended March 31,
(US$ in millions)20222021
Income statement classificationType of derivative
Net sales
Hedge accountingForeign currency$2 $— 
Cost of goods sold
   Economic hedgesForeign currency$493 $(285)
Commodities(1,255)(597)
Other (1)
80 128 
     Total Cost of goods sold $(682)$(754)
Interest expense
   Hedge accountingInterest rate$(6)$6 
   Economic hedgesInterest rate— 1 
     Total Interest expense $(6)$7 
Foreign exchange gains (losses)
   Hedge accountingForeign currency$(12)$(18)
   Economic hedgesForeign currency59 87 
     Total Foreign exchange gains (losses)$47 $69 
Other comprehensive income (loss)
Gains and losses on derivatives used as fair value hedges of foreign currency risk included in other comprehensive income (loss) during the period$— $1 
Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period $32 $(41)
Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period
$(149)$38 
Amounts released from accumulated other comprehensive income (loss) during the period
   Cash flow hedge of foreign currency risk$(2)$(1)
(1)    Other includes the results from freight, energy and other derivatives.