Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2021

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 2020 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 March 31, 2021, 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)	$	5,110	2059
Cross-currency swaps (Chilean Unidad de Fomento and Brazilian Real)	260		2028
Foreign Currency:
Argentine peso	5		2026
Chilean peso	41		2023
Colombian peso	137		2023
Euro	112		2023
Mexican Peso	89		2021
Brazilian Real	65		2022
Others, primarily with weighted average remaining maturities of a year or less	3		2022

Commodity Derivatives	Maximum Notional	Latest Maturity
Natural Gas (in MMBtu)	104	2029
Power (in MWhs)	7	2043
Coal (in Tons or Metric Tons)	8	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	March 31, 2021						December 31, 2020
Assets	Designated		Not Designated		Total		Designated		Not Designated		Total
Interest rate derivatives	$	86	$	2	$	88	$	13	$	—	$	13
Cross-currency derivatives	12		—		12		5		—		5
Foreign currency derivatives	29		90		119		40		121		161
Commodity derivatives	2		27		29		2		8		10
Total assets	$	129	$	119	$	248	$	60	$	129	$	189
Liabilities
Interest rate derivatives	$	332	$	8	$	340	$	506	$	104	$	610
Cross-currency derivatives	10		—		10		4		—		4
Foreign currency derivatives	4		19		23		8		35		43
Commodity derivatives	—		82		82		—		22		22
Total liabilities	$	346	$	109	$	455	$	518	$	161	$	679

	March 31, 2021				December 31, 2020
Fair Value	Assets		Liabilities		Assets		Liabilities
Current	$	72	$	166	$	51	$	236
Noncurrent	176		289		138		443
Total	$	248	$	455	$	189	$	679

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 March 31,
	2021		2020
Cash flow hedges
Gains (losses) recognized in AOCL
Interest rate derivatives	$	309	$	(530)
Cross-currency derivatives	2		(39)
Foreign currency derivatives	(1)		(12)
Total	$	310	$	(581)
Losses reclassified from AOCL into earnings
Interest rate derivatives	$	(24)	$	(15)
Cross-currency derivatives	(1)		(17)
Foreign currency derivatives	(3)		(8)
Commodity derivatives	(2)		—
Total	$	(30)	$	(40)
Loss reclassified from AOCL to earnings due to impairment of assets	$	(4)	$	—
Gains (losses) recognized in earnings related to
Not designated as hedging instruments:
Interest rate derivatives	$	60	$	—
Foreign currency derivatives	(11)		40
Commodity derivatives and other	(93)		6
Total	$	(44)	$	46

AOCL is expected to decrease pre-tax income from continuing operations for the three months ended March 31, 2022 by $85 million, primarily due to interest rate derivatives.