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 September 30, 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)	$	4,557	2035
Cross-Currency Swaps (Chilean Unidad de Fomento and Chilean Peso)	394		2029
Foreign Currency:
Argentine Peso	233		2026
Chilean Peso	504		2020
Colombian Peso	255		2019
Others, primarily with weighted average remaining maturities of a year or less	326		2020

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, 2017 and December 31, 2016 (in millions):



Fair Value	September 30, 2017						December 31, 2016
Assets	Designated		Not Designated		Total		Designated		Not Designated		Total
Interest rate derivatives	$	13	$	—	$	13	$	18	$	—	$	18
Cross-currency derivatives	14		—		14		4		—		4
Foreign currency derivatives	5		274		279		9		300		309
Commodity derivatives	7		45		52		20		25		45
Total assets	$	39	$	319	$	358	$	51	$	325	$	376
Liabilities
Interest rate derivatives	$	151	$	145	$	296	$	295	$	5	$	300
Cross-currency derivatives	5		—		5		18		—		18
Foreign currency derivatives	7		35		42		19		45		64
Commodity derivatives	5		13		18		26		16		42
Total liabilities	$	168	$	193	$	361	$	358	$	66	$	424



	September 30, 2017				December 31, 2016
Fair Value	Assets		Liabilities		Assets		Liabilities
Current	$	101	$	221	$	99	$	155
Noncurrent	257		140		277		269
Total	$	358	$	361	$	376	$	424

Credit Risk-Related Contingent Features ⁽¹⁾					September 30, 2017		December 31, 2016
Present value of liabilities subject to collateralization					$	12	$	41
Cash collateral held by third parties or in escrow					5		18

_____________________________


⁽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 September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Effective portion of cash flow hedges
Gains (losses) recognized in AOCL
Interest rate derivatives	$	(6	)	$	7		$	(79	)	$	(213	)
Cross-currency derivatives	12			15			14			12
Foreign currency derivatives	(4		)	(6		)	(15		)	(11		)
Commodity derivatives	9			10			23			35
Total	$	11		$	26		$	(57	)	$	(177	)
Gains (losses) reclassified from AOCL into earnings
Interest rate derivatives	$	(19	)	$	(26	)	$	(63	)	$	(81	)
Cross-currency derivatives	14			4			18			14
Foreign currency derivatives	(1		)	(7		)	(24		)	(3		)
Commodity derivatives	10			4			13			42
Total	$	4		$	(25	)	$	(56	)	$	(28	)
Gains (losses) recognized in earnings related to
Ineffective portion of cash flow hedges	$	4		$	(2	)	$	4		$	—
Not designated as hedging instruments:
Foreign currency derivatives	$	5		$	(6	)	$	(13	)	$	10
Commodity derivatives and other	1			7			7			(11		)
Total	$	6		$	1		$	(6	)	$	(1	)
Pretax losses reclassified to earnings as a result of discontinuance of cash flow hedge because it was probable that the forecasted transaction would not occur	$	—		$	—		$	(16	)	$	—

AOCL is expected to decrease pretax income from continuing operations for the twelve months ended September 30, 2018, by $67 million, primarily due to interest rate derivatives.