Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Balance Sheet Classification of derivative instruments


	Fair Value of						Fair Value of
	Hedge Assets						Hedge Liabilities
	March 31,		December 31,		March 31,		March 31,		December 31,		March 31,
	2019		2018		2018		2019		2018		2018
Derivatives designated as hedging instruments:
Commodity forward contracts (a)	$	3	$	1	$	4	$	-	$	-	$	-
Interest rate swaps - fair value hedges (b)		18		6		4				1		15
Cash flow hedges of foreign exchange risk (c)		18		10		6		4		1		26
Interest rate swaps - cash flow hedges (d)								1
Net investment hedges (e)		6		6		4		4		8		1
Total derivatives accounted for as hedges	$	45	$	23	$	18	$	9	$	10	$	42
Derivatives not designated as hedges:
Foreign exchange derivative contracts (f)		2		2				1		2
Total derivatives	$	47	$	25	$	18	$	10	$	12	$	42


Current	$	23	$	19	$	14	$	3	$	3	$	-
Noncurrent		24		6		4		7		9		42
Total derivatives	$	47	$	25	$	18	$	10	$	12	$	42

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(a) The notional amounts of the commodity forward contracts were $20 million, $21 million and $31 million at March 31, 2019, December 31, 2018 and March 31, 2018, respectively. The maximum maturity dates were in 2020 for all three periods.

(b) The notional amounts of the interest rate swaps designated as fair value hedges were €725 million at March 31, 2019, December 31, 2018 and March 31, 2018, respectively. The maximum maturity dates were in 2024 for all three periods.

(c) The notional amounts of the cash flow hedges of foreign exchange risk were $797 million, $587 million and $310 million at March 31, 2019, December 31, 2018 and March 31, 2018, respectively. The maximum maturity dates were in 2023 for all three periods.

(d) The notional amounts of the interest rate swaps designated as cash flow hedges were $180 million and maximum maturity dates were 2020 at March 31, 2019 and December 31, 2018.

(e) The notional amounts of the net investment hedges were €160 million and maximum maturity dates were 2020 at March 31, 2019 and December 31, 2018.

(f) The notional amounts of the foreign exchange derivative contracts were $625 million, $470 million and $350 million and maximum maturity dates were 2019, 2019, and 2018 at March 31, 2019, December 31, 2018 and March 31, 2018, respectively.

Effects of derivative instruments on the results of operations


	Gain (Loss) Recognized in OCI (Effective Portion)				Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (1)
	March 31,		March 31,		March 31,		March 31,
Derivatives designated as hedging instruments:	2019		2018		2019		2018
Cash Flow Hedges
Commodity forward contracts (a)	$	2	$	1	$	—	$	—
Cash flow hedges of foreign exchange risk (b)		7		(13)		(10)		(8)
Cash flow hedges of interest rate risk (c)
Net Investment Hedges
Net Investment Hedges		5				(2)
	$	14	$	(12)	$	(12)	$	(8)

	Amount of Gain (Loss) Recognized in Other income (expense), net
	March 31,		March 31,
Derivatives not designated as hedges:	2019		2018
Foreign exchange derivative contracts	$	6	$	—

(1) Gains and losses reclassified from accumulated OCI and recognized in income are recorded to (a) cost of goods sold, (b) other expense, net or (c) interest expense, net.