DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

For further information on the derivative and hedging accounting policies see Note 1—General and Summary of Significant Accounting Policies—Derivatives and Hedging Activities of Item 8.—Financial Statements and Supplementary Data in the 2017 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, 2018, 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)	$	4,475	2041
Cross-Currency Swaps (Chilean Unidad de Fomento and Chilean Peso)	419		2029
Foreign Currency:
Argentine Peso	180		2026
Chilean Peso	388		2020
Colombian Peso	285		2019
Others, primarily with weighted average remaining maturities of a year or less	327		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 March 31, 2018 and December 31, 2017 (in millions):



Fair Value	March 31, 2018						December 31, 2017
Assets	Designated		Not Designated		Total		Designated		Not Designated		Total
Interest rate derivatives	$	41	$	1	$	42	$	15	$	—	$	15
Cross-currency derivatives	45		—		45		29		—		29
Foreign currency derivatives	13		249		262		8		261		269
Commodity derivatives	—		11		11		5		30		35
Total assets	$	99	$	261	$	360	$	57	$	291	$	348
Liabilities
Interest rate derivatives	$	90	$	120	$	210	$	125	$	137	$	262
Cross-currency derivatives	1		—		1		3		—		3
Foreign currency derivatives	1		40		41		1		29		30
Commodity derivatives	—		1		1		9		11		20
Total liabilities	$	92	$	161	$	253	$	138	$	177	$	315



	March 31, 2018				December 31, 2017
Fair Value	Assets		Liabilities		Assets		Liabilities
Current	$	70	$	170	$	84	$	211
Noncurrent	290		83		264		104
Total	$	360	$	253	$	348	$	315

As of March 31, 2018, all derivative instruments subject to credit risk-related contingent features were in an asset position.



Credit Risk-Related Contingent Features ⁽¹⁾	December 31, 2017
Present value of liabilities subject to collateralization	$	15
Cash collateral held by third parties or in escrow	9

_____________________________


⁽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,
	2018			2017
Effective portion of cash flow hedges
Gains (losses) recognized in AOCL
Interest rate derivatives	$	47		$	(22	)
Cross-currency derivatives	19			12
Foreign currency derivatives	6			(15		)
Commodity derivatives	—			12
Total	$	72		$	(13	)
Gains (losses) reclassified from AOCL into earnings
Interest rate derivatives	$	(16	)	$	(24	)
Cross-currency derivatives	10			4
Foreign currency derivatives	1			(2		)
Commodity derivatives	(4		)	1
Total	$	(9	)	$	(21	)
Gains (losses) recognized in earnings related to
Not designated as hedging instruments:
Foreign currency derivatives	$	108		$	(32	)
Commodity derivatives and other	9			(2		)
Total	$	117		$	(34	)

AOCL is expected to decrease pretax income from continuing operations for the twelve months ended March 31, 2019, by $44 million, primarily due to interest rate derivatives.