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Derivative Instruments and Hedging Activities
 6 Months Ended
Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
For further information on the Company’s derivative and hedge accounting policies, see Note 1—General and Summary of Significant Accounting Policies—Derivative Instruments and Hedging Activities of Item 8.—Financial Statements and Supplementary Data in the 2019 Form 10-K.
Volume of Activity — The following tables present the Company’s maximum notional (in millions) over the remaining contractual period by type of derivative as of June 30, 2020, regardless of whether they are in qualifying cash flow hedging relationships, and the dates through which the maturities for each type of derivative range:
Interest Rate and Foreign Currency Derivatives
 
Maximum Notional Translated to USD
 
Latest Maturity
Interest rate (LIBOR and EURIBOR)
 
$
5,852

 
2047
Cross-currency swaps (Chilean Unidad de Fomento and Chilean peso)
 
229

 
2029
Foreign Currency:
 
 
 
 
Argentine peso
 
73

 
2026
Chilean peso
 
147

 
2022
Colombian peso
 
125

 
2022
Mexican peso
 
202

 
2020
Euro
 
91

 
2022
Others, primarily with weighted average remaining maturities of a year or less
 
26

 
2022
Commodity Derivatives
 
Maximum Notional
 
Latest Maturity
Natural Gas (in MMBtu)
 
60

 
2020
Power (in MWhs)
 
5

 
2024
Coal (in Tons or Metric Tons)
 
9

 
2027

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 the periods indicated (in millions):
Fair Value
June 30, 2020
 
December 31, 2019
Assets
Designated
 
Not Designated
 
Total
 
Designated
 
Not Designated
 
Total
Interest rate derivatives
$
—

 
$
—

 
$
—

 
$
31

 
$
—

 
$
31

Foreign currency derivatives
26

 
70

 
96

 
31

 
79

 
110

Commodity derivatives
—

 
84

 
84

 
—

 
30

 
30

Total assets
$
26

 
$
154

 
$
180

 
$
62

 
$
109

 
$
171

Liabilities
 
 
 
 
 
 
 
 
 
 
 
Interest rate derivatives
$
783

 
$
10

 
$
793

 
$
323

 
$
5

 
$
328

Cross-currency derivatives
45

 
—

 
45

 
21

 
—

 
21

Foreign currency derivatives
22

 
24

 
46

 
22

 
22

 
44

Commodity derivatives
—

 
65

 
65

 
2

 
29

 
31

Total liabilities
$
850

 
$
99

 
$
949

 
$
368

 
$
56

 
$
424

 
June 30, 2020
 
December 31, 2019
Fair Value
Assets
 
Liabilities
 
Assets
 
Liabilities
Current
$
125

 
$
478

 
$
72

 
$
126

Noncurrent
55

 
471

 
99

 
298

Total
$
180

 
$
949

 
$
171

 
$
424


Credit Risk-Related Contingent Features (1)
June 30, 2020
Present value of liabilities subject to collateralization
$
32

Cash collateral held by third parties or in escrow
32


_____________________________
(1)
Based on the credit rating of certain subsidiaries
Earnings and Other Comprehensive Income (Loss) — The following table presents the pre-tax gains (losses) recognized in AOCL and earnings related to all derivative instruments for the periods indicated (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
2020
 
2019
 
2020
 
2019
Cash flow hedges
 
 
 
 
 
 
 
Gains (losses) recognized in AOCL
 
 
 
 
 
 
 
Interest rate derivatives
$
(137
)
 
$
(170
)
 
$
(624
)
 
$
(264
)
Equity in earnings
—

 
—

 
(43
)
 
—

Cross-currency derivatives
3

 
4

 
(36
)
 
9

Foreign currency derivatives
(2
)
 
3

 
(14
)
 
6

Commodity derivatives
4

 
(1
)
 
4

 
(1
)
Total
$
(132
)
 
$
(164
)
 
$
(713
)
 
$
(250
)
Gains (losses) reclassified from AOCL into earnings
 
 
 
 
 
 
 
Interest rate derivatives
$
(102
)
 
$
(9
)
 
$
(117
)
 
$
(17
)
Cross-currency derivatives
2

 
(1
)
 
(15
)
 
6

Foreign currency derivatives
(5
)
 
—

 
(13
)
 
(11
)
Commodity derivatives
2

 
—

 
2

 
—

Total
$
(103
)
 
$
(10
)
 
$
(143
)

$
(22
)
Loss reclassified from AOCL to earnings due to discontinuance of hedge accounting (1)
$
—

 
$
2

 
$
—

 
$
2

Gains (losses) recognized in earnings related to
 
 
 
 
 
 
 
Not designated as hedging instruments:
 
 
 
 
 
 
 
Interest rate derivatives
$
—

 
$
(2
)
 
$
—

 
$
(4
)
Foreign currency derivatives
(18
)
 
11

 
22

 
6

Commodity derivatives and other
—

 
2

 
6

 
4

Total
$
(18
)
 
$
11

 
$
28

 
$
6


_____________________________
(1)
Cash flow hedge was discontinued on a cross-currency swap because the underlying debt was prepaid.
AOCL is expected to decrease pre-tax income from continuing operations for the twelve months ended June 30, 2021 by $121 million, primarily due to interest rate derivatives.