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Derivative Instruments | 3 Months Ended
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Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | DERIVATIVE INSTRUMENTS Foreign Currency Hedges We use operational and economic hedges, foreign currency exchange forward contracts, net investment hedges (both long-term intercompany loans payable and forward exchange contracts) and interest rate derivative instruments to manage the impact of currency exchange and interest rate fluctuations on earnings and cash flow. We do not enter into derivative instruments for speculative purposes. We did not change our hedging strategies, accounting practices or objectives from those disclosed in our Annual Report on Form 10-K for 2017.
March 2018 | Designated | Non-Designated | Total
Gross notional amount | $ | 833 |  | $ | 4,353 |  | $ | 5,186 |
Maximum term in days |  |  | 547 |
Fair value: |  |  |
Other current assets | $ | 9 |  | $ | 5 |  | $ | 14 |
Other noncurrent assets | 1 |  | — |  | 1 |
Other current liabilities | (8 | ) | (71 | ) | (79 | )
Other noncurrent liabilities | (1 | ) | — |  | (1 | )
Total fair value | $ | 1 |  | $ | (66 | ) | $ | (65 | )
December 2017 | Designated | Non-Designated | Total
Gross notional amount | $ | 1,104 |  | $ | 4,767 |  | $ | 5,871 |
Maximum term in days |  |  | 548 |
Fair value: |  |  |
Other current assets | $ | 11 |  | $ | 4 |  | $ | 15 |
Other noncurrent assets | 1 |  | — |  | 1 |
Other current liabilities | (7 | ) | (29 | ) | (36 | )
Other noncurrent liabilities | (1 | ) | — |  | (1 | )
Total fair value | $ | 4 |  | $ | (25 | ) | $ | (21 | )
In the three months 2018 we terminated our net investment hedges. The amounts related to settled net investment hedges will be subsequently reclassified to interest expense when the hedged investment is either sold or substantially liquidated. We are exposed to credit loss in the event of nonperformance by our counterparties on our outstanding derivative instruments but do not anticipate nonperformance by any of our counterparties. Should a counterparty default, our maximum exposure to loss is the asset balance of the instrument. Net Currency Exchange Rate (Losses) Gains
| Three Months
Recorded in: | 2018 | 2017
Cost of sales | $ | 1 |  | $ | (5 | )
Other income (expense), net | (2 | ) | — |
Total | $ | (1 | ) | $ | (5 | )
On March 31, 2018 and December 31, 2017 pretax gains on derivatives designated as hedges recorded in AOCI that are expected to be reclassified to earnings within 12 months of the balance sheet date were $3 and $7. This reclassification is primarily due to the sale of inventory that includes previously hedged purchases. There were no ineffective portions of derivatives that resulted in gains or losses in any of the periods presented. Interest Rate Risk In conjunction with our offering of senior unsecured notes in the three months 2018, we terminated cash flow hedges with gross notional amounts of $600 designated as hedges of our interest rates, the impact of which will be recognized over time as a benefit within interest expense. We also elected to terminate interest rate swaps with gross notional amounts of $500 designated as fair value hedges of underlying fixed rate obligations representing a portion of our $600 unsecured senior notes due in 2024. The remaining fair value is presented in long-term debt and will be reclassified to interest expense over the term of the debt. There was no hedge ineffectiveness recorded as a result of these cash flow and fair value hedges in 2018.

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- References No definition available. + Details
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- 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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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