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Derivative Instruments and Hedging Activities
 9 Months Ended
Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES 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 September 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)
 
$
4,499

 
2042
Cross-currency swaps (Chilean Unidad de Fomento and Chilean peso)
 
376

 
2029
Foreign Currency:
 
 
 
 
Argentine peso
 
73

 
2026
Chilean peso
 
334

 
2021
Colombian peso
 
163

 
2020
Brazilian real
 
80

 
2019
Others, primarily with weighted average remaining maturities of a year or less
 
246

 
2021

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, 2018 and December 31, 2017 (in millions):
Fair Value
September 30, 2018
 
December 31, 2017
Assets
Designated
 
Not Designated
 
Total
 
Designated
 
Not Designated
 
Total
Interest rate derivatives
$
68

 
$
2

 
$
70

 
$
15

 
$
—

 
$
15

Cross-currency derivatives
26

 
—

 
26

 
29

 
—

 
29

Foreign currency derivatives
—

 
243

 
243

 
8

 
261

 
269

Commodity derivatives
—

 
17

 
17

 
5

 
30

 
35

Total assets
$
94

 
$
262

 
$
356

 
$
57

 
$
291

 
$
348

Liabilities
 
 
 
 
 
 
 
 
 
 
 
Interest rate derivatives
$
159

 
$
2

 
$
161

 
$
125

 
$
137

 
$
262

Cross-currency derivatives
2

 
—

 
2

 
3

 
—

 
3

Foreign currency derivatives
29

 
25

 
54

 
1

 
29

 
30

Commodity derivatives
—

 
4

 
4

 
9

 
11

 
20

Total liabilities
$
190

 
$
31

 
$
221

 
$
138

 
$
177

 
$
315

 
September 30, 2018
 
December 31, 2017
Fair Value
Assets
 
Liabilities
 
Assets
 
Liabilities
Current
$
74

 
$
69

 
$
84

 
$
211

Noncurrent
282

 
152

 
264

 
104

Total
$
356

 
$
221

 
$
348

 
$
315


As of September 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

 _____________________________
(1) 
Based on the credit rating of certain subsidiaries
Earnings and Other Comprehensive Income (Loss) — The next table presents (in millions) the pre-tax 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,
2018
 
2017
 
2018
 
2017
Effective portion of cash flow hedges
 
 
 
 
 
 
 
Gains (losses) recognized in AOCL
 
 
 
 
 
 
 
Interest rate derivatives
$
26

 
$
(6
)
 
$
81

 
$
(79
)
Cross-currency derivatives
3

 
12

 
(2
)
 
14

Foreign currency derivatives
(11
)
 
(4
)
 
(44
)
 
(15
)
Commodity derivatives
—

 
9

 
—

 
23

Total
$
18

 
$
11

 
$
35

 
$
(57
)
Gains (losses) reclassified from AOCL into earnings
 
 
 
 
 
 
 
Interest rate derivatives
$
(12
)
 
$
(19
)
 
$
(42
)
 
$
(63
)
Cross-currency derivatives
(8
)
 
14

 
(26
)
 
18

Foreign currency derivatives
(8
)
 
(1
)
 
(9
)
 
(24
)
Commodity derivatives
—

 
10

 
(5
)
 
13

Total
$
(28
)
 
$
4

 
$
(82
)

$
(56
)
Loss reclassified from AOCL to earnings due to discontinuance of hedge accounting (1)

$
—

 
$
—

 
$
—

 
$
(16
)
Gains (losses) recognized in earnings related to
 
 
 
 
 
 
 
Ineffective portion of cash flow hedges
$
—

 
$
4

 
$
(3
)
 
$
4

Not designated as hedging instruments:
 
 
 
 
 
 
 
Foreign currency derivatives
(10
)
 
5

 
144

 
(13
)
Commodity derivatives and other
2

 
1

 
33

 
7

Total
$
(8
)
 
$
6

 
$
177

 
$
(6
)

_____________________________
(1)
Cash flow hedge was discontinued because it was probable the forecasted transaction will not occur.
AOCL is expected to decrease pre-tax income from continuing operations for the twelve months ended September 30, 2019 by $66 million, primarily due to interest rate derivatives.