Derivative Financial Instruments

12 Months Ended

Dec. 31, 2016

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

14. Derivative Financial Instruments

Notional amounts are used to measure the volume of foreign currency forward contracts and do not represent exposure to foreign currency losses. The table below presents the notional amounts of the Company’s outstanding foreign currency forward contracts by currency at December 31, 2016.

Currency	Notional Amount
	(in millions)
U.S. dollar	$	117
Euro		109
Canadian dollar		96
British pound		28
Other		8
Total	$	358

At December 31, 2016, the Company’s foreign currency forward contracts had maturities through 2021.

The table below presents the location of the Company’s derivative instruments recorded at fair value on the consolidated balance sheets.

	December 31, 2016								December 31, 2015
	Other Current Assets		Other Assets		Other Current Liabilities		Other Liabilities		Other Current Assets		Other Assets		Other Current Liabilities		Other Liabilities
	(in millions)
Derivatives designated as hedging instruments:
Foreign currency forward contracts(1)	$	10	$	2	$	6	$	—	$	1	$	1	$	15	$	1
Total derivative instruments	$	10	$	2	$	6	$	—	$	1	$	1	$	15	$	1

⁽¹⁾ See Note 12 for a description of the fair value hierarchy related to the Company's foreign currency forward contracts.

The effects from foreign currency forward contracts on the consolidated statements of operations were a pre-tax loss of $13 million for the year ended December 31, 2016, a pre-tax loss of $18 million for the year ended December 31, 2015, and a pre-tax loss of $8 million for the year ended December 31, 2014. At December 31, 2016, the estimated net amount of existing gains that are expected to be reclassified into income within the next 12 months is $5 million.