Financial Instruments, Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2018

Financial Instruments, Derivatives and Hedging Activities

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

	Fair Value of Derivative Instruments as of March 31, 2018
Derivatives Designated as Hedging Instruments (in millions):	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity and foreign currency	Accounts receivable, net	$	29	Accounts payable and accrued liabilities	$	14
Commodity, foreign currency, and interest rate contracts	Other assets		2	Non-current liabilities		11
		$	31		$	25
	Fair Value of Derivative Instruments as of December 31, 2017
Derivatives Designated as Hedging Instruments (in millions):	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity and foreign currency	Accounts receivable, net	$	11	Accounts payable and accrued liabilities	$	23
Commodity, foreign currency, and interest rate contracts	Other assets		3	Non-current liabilities		8
		$	14		$	31

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

	Three Months Ended March 31, 2018
Derivatives in Cash Flow Hedging Relationships	Amount of Gains (Losses) Recognized in  OCI on Derivatives		Location of Gains (Losses) Reclassified from AOCI into Income	Amount of Gains (Losses) Reclassified from AOCI into Income
Commodity contracts	$	20	Cost of sales	$	(5)
Foreign currency contracts		2	Net sales/cost of sales		1
Total	$	22		$	(4)
	Three Months Ended March 31, 2017
Derivatives in Cash Flow Hedging Relationships	Amount of Gains (Losses) Recognized in  OCI on Derivatives		Location of Gains (Losses) Reclassified from AOCI into Income	Amount of Gains (Losses) Reclassified from AOCI into Income
Commodity contracts	$	7	Cost of sales	$	(3)
Foreign currency contracts		1	Net sales/cost of sales		—
Interest rate contracts		—	Financing costs, net		(1)
Total	$	8		$	(4)

Schedule of fair value of financial instruments and derivatives

	As of March 31, 2018								As of December 31,  2017
(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	$	10	$	10	$	—	$	—	$	10	$	10	$	—	$	—
Derivative assets		31		14		17		—		14		3		11		—
Derivative liabilities		25		3		22		—		31		11		20		—
Long-term debt		1,587		—		1,587		—		1,845		—		1,845		—

(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.