Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2017

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 2016 Form 10-K.

Volume of Activity — The following table presents the Company’s maximum notional (in millions) over the remaining contractual period by type of derivative as of March 31, 2017, 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	Maximum Notional Translated to USD		Latest Maturity
Interest Rate (LIBOR and EURIBOR)	$	4,834	2039
Cross-Currency Swaps (Chilean Unidad de Fomento and Chilean Peso)	378		2029
Foreign Currency:
Argentine Peso	172		2026
Colombian Peso	329		2019
Euro	159		2019
Others, primarily with weighted average remaining maturities of a year or less	217		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 March 31, 2017 and December 31, 2016 (in millions):

Fair Value	March 31, 2017						December 31, 2016
Assets	Designated		Not Designated		Total		Designated		Not Designated		Total
Interest rate derivatives	$	18	$	—	$	18	$	18	$	—	$	18
Cross-currency derivatives	10		—		10		4		—		4
Foreign currency derivatives	8		270		278		9		300		309
Commodity derivatives	15		27		42		20		25		45
Total assets	$	51	$	297	$	348	$	51	$	325	$	376
Liabilities
Interest rate derivatives	$	296	$	5	$	301	$	295	$	5	$	300
Cross-currency derivatives	10		—		10		18		—		18
Foreign currency derivatives	27		21		48		19		45		64
Commodity derivatives	12		16		28		26		16		42
Total liabilities	$	345	$	42	$	387	$	358	$	66	$	424

	March 31, 2017				December 31, 2016
Fair Value	Assets		Liabilities		Assets		Liabilities
Current	$	93	$	105	$	99	$	155
Noncurrent	255		282		277		269
Total	$	348	$	387	$	376	$	424
Credit Risk-Related Contingent Features (1)					March 31, 2017		December 31, 2016
Present value of liabilities subject to collateralization					$	26	$	41
Cash collateral held by third parties or in escrow					7		18

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⁽¹⁾  Based on the credit rating of certain subsidiaries

Earnings and Other Comprehensive Income (Loss) — 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 March 31,
	2017			2016
Effective portion of cash flow hedges
Gain (losses) recognized in AOCL
Interest rate derivatives	$	(22	)	$	(130	)
Cross-currency derivatives	12			8
Foreign currency derivatives	(15		)	—
Commodity derivatives	12			37
Total	$	(13	)	$	(85	)
Gain (losses) reclassified from AOCL into earnings
Interest rate derivatives	$	(24	)	$	(29	)
Cross-currency derivatives	4			9
Foreign currency derivatives	(2		)	2
Commodity derivatives	1			22
Total	$	(21	)	$	4
Gain (losses) recognized in earnings related to
Ineffective portion of cash flow hedges	$	—		$	2
Not designated as hedging instruments:
Foreign currency derivatives	$	(32	)	$	40
Commodity derivatives and Other	(2		)	(9		)
Total	$	(34	)	$	33

The AOCL expected to decrease pretax income from continuing operations, primarily due to interest rate derivatives, for the twelve months ended March 31,2018 is $78 million.