Financial Instruments, Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2017

Financial Instruments, Derivatives and Hedging Activities

Schedule of location and amount of assets and liabilities reported in balance sheet

	Fair Value of Derivative Instruments
		Fair Value					Fair Value
Derivatives designated as		As of		As of			As of		As of
hedging instruments:	Balance Sheet	June 30,		December 31,		Balance Sheet	June 30,		December 31,
(in millions)	Location	2017		2016		Location	2017		2016
Commodity and foreign currency	Accounts receivable, net	$	21	$	31	Accounts payable and accrued liabilities	$	15	$	25
Commodity, foreign currency, and interest rate contracts	Other assets		5		8	Non-current liabilities		3		2
Total		$	26	$	39		$	18	$	27

Schedule of amount of gains and losses recognized in OCI and location and amount of gains and losses reported in income statement

Additional information relating to the Company’s derivative instruments is presented below:

					Location of Gains
	Amount of Gains (Losses)				(Losses)	Amount of Gains (Losses)
Derivatives in Cash-Flow	Recognized in OCI				Reclassified from	Reclassified from AOCI into Income
Hedging Relationships	Three Months Ended		Three Months Ended		AOCI	Three Months Ended		Three Months Ended
(in millions, pre-tax)	June 30,  2017		June 30,  2016		into Income	June 30,  2017		June 30,  2016
Commodity contracts	$	4	$	20	Cost of sales	$	2	$	(11)
Foreign currency contracts		—		—	Gross profit		—		—
Interest rate contracts		—		—	Financing costs, net		—		(1)
Total	$	4	$	20		$	2	$	(12)

					Location of Gains
	Amount of Gains (Losses)				(Losses)	Amount of Gains (Losses)
Derivatives in Cash-Flow	Recognized in OCI				Reclassified from	Reclassified from AOCI into Income
Hedging Relationships	Six Months Ended		Six Months Ended		AOCI	Six Months Ended		Six Months Ended
(in millions, pre-tax)	June 30,  2017		June 30,  2016		into Income	June 30,  2017		June 30,  2016
Commodity contracts	$	11	$	2	Cost of sales	$	(1)	$	(20)
Foreign currency contracts		1		—	Gross profit		—		(1)
Interest rate contracts		—		—	Financing costs, net		(1)		(1)
Total	$	12	$	2		$	(2)	$	(22)

Schedule of fair value of financial instruments and derivatives

	As of June 30, 2017								As of December 31,  2016
(in millions)	Total		Level 1 (a)		Level 2 (b)		Level 3 (c)		Total		Level 1 (a)		Level 2 (b)		Level 3 (c)
Available for sale securities	$	8	$	8	$	—	$	—	$	7	$	7	$	—	$	—
Derivative assets		26		10		16		—		39		6		33		—
Derivative liabilities		18		2		16		—		27		11		16		—
Long-term debt		1,927		—		1,927		—		1,929		—		1,929		—

(a) Level 1 inputs consist of quoted prices (unadjusted) in active markets for identical assets or liabilities. 

(b) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.  Level 2 inputs are based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability or can be derived principally from or corroborated by observable market data.  

(c) Level 3 inputs are unobservable inputs for the asset or liability.  Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.