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 June 30, 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)	$	4,492	2042
Cross-Currency Swaps (Chilean Unidad de Fomento and Chilean peso)	373		2029
Foreign Currency:
Argentine peso	120		2026
Chilean peso	381		2021
Colombian peso	212		2020
Brazilian real	218		2018
Others, primarily with weighted average remaining maturities of a year or less	260		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 June 30, 2018 and December 31, 2017 (in millions):



Fair Value	June 30, 2018						December 31, 2017
Assets	Designated		Not Designated		Total		Designated		Not Designated		Total
Interest rate derivatives	$	53	$	1	$	54	$	15	$	—	$	15
Cross-currency derivatives	23		—		23		29		—		29
Foreign currency derivatives	—		248		248		8		261		269
Commodity derivatives	—		24		24		5		30		35
Total assets	$	76	$	273	$	349	$	57	$	291	$	348
Liabilities
Interest rate derivatives	$	179	$	3	$	182	$	125	$	137	$	262
Cross-currency derivatives	3		—		3		3		—		3
Foreign currency derivatives	26		25		51		1		29		30
Commodity derivatives	—		5		5		9		11		20
Total liabilities	$	208	$	33	$	241	$	138	$	177	$	315



	June 30, 2018				December 31, 2017
Fair Value	Assets		Liabilities		Assets		Liabilities
Current	$	82	$	72	$	84	$	211
Noncurrent	267		169		264		104
Total	$	349	$	241	$	348	$	315

As of June 30, 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

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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 June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Effective portion of cash flow hedges
Gains (losses) recognized in AOCL
Interest rate derivatives	$	8		$	(51	)	$	55		$	(73	)
Cross-currency derivatives	(24		)	(10		)	(5		)	2
Foreign currency derivatives	(39		)	4			(33		)	(11		)
Commodity derivatives	—			2			—			14
Total	$	(55	)	$	(55	)	$	17		$	(68	)
Gains (losses) reclassified from AOCL into earnings
Interest rate derivatives	$	(14	)	$	(20	)	$	(30	)	$	(44	)
Cross-currency derivatives	(28		)	—			(18		)	4
Foreign currency derivatives	(2		)	(21		)	(1		)	(23		)
Commodity derivatives	(1		)	2			(5		)	3
Total	$	(45	)	$	(39	)	$	(54	)	$	(60	)
Loss reclassified from AOCL to earnings due to discontinuance of hedge accounting ⁽¹⁾	$	—		$	(19	)	$	—		$	(16	)
Gains (losses) recognized in earnings related to
Ineffective portion of cash flow hedges	$	(3	)	$	—		$	(3	)	$	—
Not designated as hedging instruments:
Foreign currency derivatives	$	46		$	14		$	154		$	(18	)
Commodity derivatives and other	22			8			31			6
Total	$	68		$	22		$	185		$	(12	)

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⁽¹⁾	Cash flow hedge was discontinued because it was probable the forecasted transaction will not occur.

AOCL is expected to decrease pretax income from continuing operations for the twelve months ended June 30, 2019, by $66 million, primarily due to interest rate derivatives.