XML 25 R13.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Derivative Instruments and Hedging Activities | 6 Months Ended
--- | ---
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities | 5. Derivative Instruments and Hedging Activities Commodity price hedging: We had outstanding futures and option contracts that hedged the forecasted purchase of approximately 77 million and 109 million bushels of corn as of June 30, 2024 and December 31, 2023. We also had outstanding swap contracts that hedged the forecasted purchase of approximately 26 million and 28 million mmbtus of natural gas as of June 30, 2024 and December 31, 2023. Foreign currency hedging: We hedge certain assets using foreign currency derivatives not designated as hedging instruments, which had a notional value of $404 million and $694 million as of June 30, 2024 and December 31, 2023. We also hedge certain liabilities using foreign currency derivatives not designated as hedging instruments, which had a notional value of $120 million and $182 million as of June 30, 2024 and December 31, 2023. We hedge certain assets using foreign currency cash flow hedging instruments, which had a notional value of $394 million and $449 million as of June 30, 2024 and December 31, 2023. We also hedge certain liability positions using foreign currency cash flow hedging instruments, which had a notional value of $465 million and $621 million as of June 30, 2024 and December 31, 2023. Interest rate hedging: We periodically enter into T-Locks to hedge our exposure to interest rate changes. We have settled T-Locks associated with the issuance of our senior notes due in 2030 and 2050. The realized loss upon settlement of these T-Locks was recorded in Accumulated other comprehensive loss (“AOCL”) and is amortized into earnings over the term of the senior notes. We did not have outstanding T-Locks as of either June 30, 2024 or December 31, 2023. The derivative instruments designated as cash flow hedges included in AOCL as of June 30, 2024 and December 31, 2023 are as follows:
|  | (Losses) included in AOCL as of
|  | June 30, 2024 |  | December 31, 2023
Commodity contracts, net of income tax effect of $19 and $17 |  | $ | (50) |  |  | $ | (46) |
Foreign currency contracts, net of income tax effect of $2 and $1 |  | — |  |  | — |
Interest rate contracts, net of income tax effect of $1 |  | (2) |  |  | (2) |
Total |  | $ | (52) |  |  | $ | (48) |
As of June 30, 2024, AOCL included $46 million of net losses (net of income taxes of $16 million) on commodities-related derivative instruments, T-Locks and foreign currency hedges designated as cash flow hedges that are expected to be reclassified into earnings during the next twelve months. The fair value and balance sheet location of our derivative instruments, presented gross in the Condensed Consolidated Balance Sheets, are as follows:
|  | Fair Value of Hedging Instruments as of June 30, 2024
|  | Designated Hedging Instruments |  | Non-Designated Hedging Instruments
Balance Sheet Location |  | Commodity Contracts |  | Foreign Currency Contracts |  | Total |  | Commodity Contracts |  | Foreign Currency Contracts |  | Total
Accounts receivable, net |  | $ | 9 |  |  | $ | 12 |  |  | $ | 21 |  |  | $ | — |  |  | $ | 7 |  |  | $ | 7 |
Other non-current assets |  | 1 |  |  | 4 |  |  | 5 |  |  | — |  |  | 1 |  |  | 1 |
Assets |  | 10 |  |  | 16 |  |  | 26 |  |  | — |  |  | 8 |  |  | 8 |
Accounts payable |  | 62 |  |  | 10 |  |  | 72 |  |  | 2 |  |  | 5 |  |  | 7 |
Other non-current liabilities |  | 2 |  |  | 1 |  |  | 3 |  |  | — |  |  | — |  |  | — |
Liabilities |  | 64 |  |  | 11 |  |  | 75 |  |  | 2 |  |  | 5 |  |  | 7 |
Net Assets/(Liabilities) |  | $ | (54) |  |  | $ | 5 |  |  | $ | (49) |  |  | $ | (2) |  |  | $ | 3 |  |  | $ | 1 |
|  | Fair Value of Hedging Instruments as of December 31, 2023
|  | Designated Hedging Instruments |  | Non-Designated Hedging Instruments
Balance Sheet Location |  | Commodity Contracts |  | Foreign Currency Contracts |  | Total |  | Commodity Contracts |  | Foreign Currency Contracts |  | Total
Accounts receivable, net |  | $ | 6 |  |  | $ | 11 |  |  | $ | 17 |  |  | $ | — |  |  | $ | 5 |  |  | $ | 5 |
Other non-current assets |  | — |  | 4 |  | 4 |  | — |  | — |  |  | — |
Assets |  | 6 |  | 15 |  | 21 |  | — |  | 5 |  | 5
Accounts payable |  | 44 |  | 14 |  | 58 |  | 2 |  | 12 |  | 14
Other non-current liabilities |  | 2 |  | 2 |  | 4 |  | — |  | — |  |  | — |
Liabilities |  | 46 |  | 16 |  | 62 |  | 2 |  | 12 |  | 14
Net Assets/(Liabilities) |  | $ | (40) |  |  | $ | (1) |  |  | $ | (41) |  |  | $ | (2) |  |  | $ | (7) |  |  | $ | (9) |
Additional information relating to our derivative instruments is as follows:
|  | (Losses) Gains Recognized in AOCL on Derivatives |  |  |  | (Losses) Gains Reclassified from AOCL into Income
Derivatives in Cash Flow |  | Three Months Ended June 30, |  | Income Statement |  | Three Months Ended June 30,
Hedging Relationships |  | 2024 |  | 2023 |  | Location |  | 2024 |  | 2023
Commodity contracts |  | $ | (29) |  |  | $ | (55) |  |  | Cost of sales |  | $ | (32) |  |  | $ | (18) |
Foreign currency contracts |  | 1 |  |  | (4) |  |  | Net sales/Cost of sales |  | 1 |  |  | (2) |
Total |  | $ | (28) |  |  | $ | (59) |  |  |  |  | $ | (31) |  |  | $ | (20) |
|  | (Losses) Gains Recognized in AOCL on Derivatives |  |  |  | (Losses) Gains Reclassified from AOCL into Income
Derivatives in Cash Flow |  | Six Months Ended June 30, |  | Income Statement |  | Six Months Ended June 30,
Hedging Relationships |  | 2024 |  | 2023 |  | Location |  | 2024 |  | 2023
Commodity contracts |  | $ | (71) |  |  | $ | (122) |  |  | Cost of sales |  | $ | (65) |  |  | $ | (9) |
Foreign currency contracts |  | 2 |  |  | 5 |  |  | Net sales/Cost of sales |  | 1 |  |  | 7 |
Total |  | $ | (69) |  |  | $ | (117) |  |  |  |  | $ | (64) |  |  | $ | (2) |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration