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Derivative Instruments and Hedging Activities
 9 Months Ended
Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
There are no changes to the information disclosed in Note 1—General and Summary of Significant Accounting Policies—Derivatives and Hedging Activities of Item 8.—Financial Statements and Supplementary Data in the 2015 Form 10-K.
Volume of Activity — The following table presents the Company’s significant outstanding notional (in millions) by type of derivative as of September 30, 2016, regardless of whether they are in qualifying cash flow hedging relationships, and the dates through which the maturities for each type of derivative range:
Derivatives
 
Current Notional Translated to USD
 
Latest Maturity
Interest Rate (LIBOR and EURIBOR)
 
$
3,324

 
2033
Cross-Currency Swaps (Chilean Unidad de Fomento and Chilean Peso)
 
379

 
2029
Foreign Currency:
 
 
 
 
Argentine Peso
 
158

 
2026
Chilean Unidad de Fomento
 
196

 
2019
Others, primarily with weighted average remaining maturities of a year or less
 
1,227

 
2019

Accounting and Reporting — Assets and Liabilities — The following tables present the fair value of assets and liabilities related to the Company’s derivative instruments as of September 30, 2016 and December 31, 2015 (in millions):
Fair Value
September 30, 2016
 
December 31, 2015
Assets
Designated
 
Not Designated
 
Total
 
Designated
 
Not Designated
 
Total
Cross-currency derivatives
$
3

 
$
—

 
$
3

 
$
—

 
$
—

 
$
—

Foreign currency derivatives
11

 
305

 
316

 
8

 
319

 
327

Commodity derivatives
28

 
34

 
62

 
30

 
18

 
48

Total assets
$
42

 
$
339

 
$
381

 
$
38

 
$
337

 
$
375

Liabilities
 
 
 
 
 
 
 
 
 
 
 
Interest rate derivatives
$
495

 
$
6

 
$
501

 
$
358

 
$
—

 
$
358

Cross-currency derivatives
26

 
—

 
26

 
43

 
—

 
43

Foreign currency derivatives
35

 
47

 
82

 
35

 
21

 
56

Commodity derivatives
20

 
18

 
38

 
12

 
21

 
33

Total liabilities
$
576

 
$
71

 
$
647

 
$
448

 
$
42

 
$
490

 
September 30, 2016
 
December 31, 2015
Fair Value
Assets
 
Liabilities
 
Assets
 
Liabilities
Current
$
110

 
$
158

 
$
86

 
$
144

Noncurrent
271

 
489

 
289

 
346

Total
$
381

 
$
647

 
$
375

 
$
490

 
 
 
 
 
 
 
 
Credit Risk-Related Contingent Features (1)
 
 
 
 
September 30, 2016
 
December 31, 2015
Present value of liabilities subject to collateralization
 
$
47

 
$
58

Cash collateral held by third parties or in escrow
 
21

 
38


 _____________________________
(1) 
Based on the credit rating of certain subsidiaries
Earnings and Other Comprehensive (Loss) Income — The next table presents (in millions) the pretax gains (losses) recognized in AOCL and earnings related to all derivative instruments for the periods indicated:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
2016
 
2015
 
2016
 
2015
Effective portion of cash flow hedges:
 
 
 
 
 
 
 
Gain (Losses) recognized in AOCL
 
 
 
 
 
 
 
Interest rate derivatives
$
7

 
$
(110
)
 
$
(213
)
 
$
(130
)
Cross-currency derivatives
15

 
3

 
12

 
4

Foreign currency derivatives
(6
)
 
5

 
(11
)
 
6

Commodity derivatives
10

 
10

 
35

 
25

Total
$
26

 
$
(92
)
 
$
(177
)
 
$
(95
)
Gain (Losses) reclassified from AOCL into earnings
 
 
 
 
 
 
 
Interest rate derivatives
$
(26
)
 
$
(33
)
 
$
(81
)
 
$
(88
)
Cross-currency derivatives
4

 
(1
)
 
14

 
(3
)
Foreign currency derivatives
(7
)
 
12

 
(3
)
 
20

Commodity derivatives
4

 
8

 
42

 
19

Total
$
(25
)
 
$
(14
)
 
$
(28
)

$
(52
)
Gain (Losses) recognized in earnings related to
 
 
 
 
 
 
 
Ineffective portion of cash flow hedges
$
(2
)
 
$
(2
)
 
$
—

 
$
(6
)
Not designated as hedging instruments:
 
 
 
 
 
 
 
Foreign currency derivatives
$
(6
)
 
$
23

 
$
10

 
$
62

Commodity derivatives and Other
7

 
(10
)
 
(11
)
 
(18
)
Total
$
1

 
$
13

 
$
(1
)
 
$
44

 
 
 
 
 
 
 
 
 
 
 
 
 
Twelve Months Ended September 30, 2017
AOCL expected to decrease pre-tax income from continuing operations (1)
 
$
133
 
_____________________________
(1) 
Primarily due to interest rate derivatives