XML 46 R36.htm IDEA: XBRL DOCUMENT v3.19.1
Derivative and Other Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2019
General Discussion of Derivative Instruments and Hedging Activities [Abstract]  
Derivatives Not Designated as Hedging Instruments [Table Text Block]
The following table sets forth the impact on earnings from derivatives not designated as hedges.
 
 
 Pre-tax amount of gain/
 
 
 
 
(loss) recognized in
 
 
 
 
income on derivative
 
 
 
 
Three Months Ended
 
 
 
 
March 31,
 
Affected line item in the
Derivatives not designated as hedges
 
2019
 
2018
 
Statement of Operations
Foreign exchange
 
$
(1
)
 
$
—

 
Net sales
Foreign exchange
 
1

 
1

 
Cost of products sold
Foreign exchange
 
(15
)
 
5

 
Foreign exchange
 
 
$
(15
)
 
$
6

 
 
Schedule of Derivative Instruments Included in Earnings
Fair Value Hedge Carrying Amounts

 
 
Carrying amount of the hedged
 
 
assets/(liabilities)
 
 
March 31,
2019
 
December 31,
2018
Line item in the Balance Sheet in which the hedged item is included
 
 
Cash and cash equivalents
 
$
6

 
$
1

Receivables, net
 
13

 
15

Accounts payable
 
(64
)
 
(13
)
Accumulated Other Comprehensive Income (AOCI) and Earnings From Changes In Fair Value Related To Derivative Instruments
The following tables set forth financial information about the impact on other comprehensive income ("OCI"), accumulated other comprehensive income (“AOCI”) and earnings from changes in the fair value of derivative instruments.

 
 
 Amount of gain/(loss)
 
 
 
 
recognized in OCI
 
 
 
 
Three Months Ended
 
 
 
 
March 31,
 
 
Derivatives in cash flow hedges
 
2019
 
2018
 
 
Foreign exchange
 
$
(4
)
 
$
(3
)
 
 
Commodities
 
10

 
(23
)
 
 
 
 
$
6

 
$
(26
)
 
 
 
 
 
 
 
 
 
 
 
Amount of gain/
 
 
 
 
(loss) reclassified from
 
 
 
 
AOCI into income
 
 
 
 
Three Months Ended
 
 
 
 
March 31,
 
Affected line items in the
Derivatives in cash flow hedges
 
2019
 
2018
 
Statement of Operations
Foreign exchange
 
$
(1
)
 
$
—

 
Net sales
Commodities
 
3

 
(2
)
 
Net sales
Foreign exchange
 
—

 
—

 
Cost of products sold
Commodities
 
(10
)
 
10

 
Cost of products sold
 
 
(8
)
 
8

 
Income before taxes
 
 
2

 
(2
)
 
Provision for income taxes
 
 
$
(6
)
 
$
6

 
Net Income
The following tables set forth the impact on OCI from changes in the fair value of derivative instruments designated as net investment hedges.
 
 
Amount of gain/(loss)
 
 
recognized in OCI
 
 
Three months ended
 
 
March 31,
Derivatives designated as net investment hedges
 
2019
 
2018
Foreign exchange
 
$
26

 
$
(28
)
Fair Value of Outstanding Derivative Instruments in the Consolidated Balance Sheets
The following table sets forth the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2019 and December 31, 2018, respectively. The fair values of these financial instruments were reported under Level 2 of the fair value hierarchy.

 
 
Balance Sheet classification
 
March 31,
2019
 
December 31, 2018
 
Balance Sheet classification
 
March 31,
2019
 
December 31, 2018
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts cash flow
 
Other current assets
 
$
7

 
$
6

 
Accrued liabilities
 
$
10

 
$
5

 
 
Other non-current assets
 
1

 
3

 
Other non-current liabilities
 
—

 
1

Foreign exchange contracts fair value
 
Other current assets
 
1

 
1

 
Accrued liabilities
 
—

 
1

Commodities contracts cash flow
 
Other current assets
 
14

 
16

 
Accrued liabilities
 
23

 
42

 
 
Other non-current assets
 
2

 
2

 
Other non-current liabilities
 
2

 
6

Net investment hedge
 
Other non-current assets
 
34

 
15

 
Other non-current liabilities
 
—

 
—

 
 
$
59

 
$
43

 
 
 
$
35

 
$
55

Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
 
Other current assets
 
$
5

 
$
4

 
Accrued liabilities
 
$
9

 
$
4

 
 
Other non-current assets
 
2

 
—

 
Other non-current liabilities
 
1

 
—

 
 
$
7

 
$
4

 
 
 
$
10

 
$
4

 
 
 
 
 
 
 
 
 
 
 
 
 
Total derivatives
 
 
 
$
66

 
$
47

 
 
 
$
45

 
$
59
Schedule of Offsetting Derivative Assets and Liabilities
In the table below, the aggregate fair values of the Company's derivative assets and liabilities are presented on both a gross and net basis, where appropriate.

 
Gross amounts recognized in the Balance Sheet
Gross amounts not offset in the Balance Sheet
Net amount
Balance at March 31, 2019
 
 
 
Derivative assets
$66
$17
$49
Derivative liabilities
45
17
28
 
 
 
 
Balance at December 31, 2018
 
 
 
Derivative assets
47
19
28
Derivative liabilities
59
19
40
Notional Values of Outstanding Derivative Instruments in the Consolidated Balance Sheet
The aggregate U.S. dollar-equivalent notional values of outstanding derivative instruments in the Consolidated Balance Sheets at March 31, 2019 and December 31, 2018 were:
 
March 31, 2019
 
December 31, 2018
Derivatives in cash flow hedges:
 
 
 
Foreign exchange
$
686

 
$
820

Commodities
416

 
428

Derivatives in fair value hedges:

 

Foreign exchange
115

 
74

Derivatives not designated as hedges:
 
 
 
Foreign exchange
745

 
796