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Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE INSTRUMENTS

v3.22.1
DERIVATIVE INSTRUMENTS
 3 Months Ended
Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] Ìý
Derivative Instruments
NOTE 13 - DERIVATIVE INSTRUMENTS
We are exposed to fluctuations in market prices of raw materials and energy sources. We may use cash-settled commodity swaps and options to hedge the market risk associated with the purchase of certain of our raw materials and energy requirements. Our hedging strategy is to reduce the effect on earnings from the price volatility of these various commodity exposures, including timing differences between when we incur raw material commodity costs and when we receive sales surcharges from our customers based on those raw materials. Independent of any hedging activities, price changes in any of these commodity markets could negatively affect operating costs.
Our commodity contracts are designated as cash flow hedges for accounting purposes, and we record the gains and losses for the derivatives in Accumulated other comprehensive income until we reclassify them into Cost of goods sold when we recognize the associated underlying operating costs. Refer to NOTE 15 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) for further information.
The following table presents the notional amount of our outstanding hedge contracts:
(In Millions)
March 31, 2022 December 31, 2021
Commodity Contracts Unit of Measure Maturity Dates Notional Amount Notional Amount
Natural gas MMBtu April 2022 - November 2024 105Ìý 93Ìý
Zinc Pounds April 2022 - December 2022 27Ìý 35Ìý
The following table presents the fair value of our cash flow hedges and the classification in the Statements of Unaudited Condensed Consolidated Financial Position:
(In Millions)
Balance Sheet Location March 31,
2022		 December 31,
2021
Other current assets $ 140Ìý $ 40Ìý
Other non-current assets 26Ìý —Ìý
Other current liabilities —Ìý (10)
Other non-current liabilities —Ìý (4)