Derivative and Other Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Accumulated Other Comprehensive Income (AOCI) and Earnings From Changes In Fair Value Related To Derivative Instruments

The following tables set forth financial information about the impact on other comprehensive income ("OCI"), accumulated other comprehensive income (“AOCI”) and earnings from changes in the fair value of derivative instruments.


	Amount of gain/(loss)						Amount of gain/(loss)
	recognized in OCI						recognized in OCI
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Derivatives in cash flow hedges	2020		2019		2020		2019
Foreign exchange	$	(2)	$	(2)	$	1	$	(4)
Interest Rate	—		(1)		(1)		(1)
Commodities	16		(11)		(21)		(19)
	$	14	$	(14)	$	(21)	$	(24)

	Amount of gain/						Amount of gain/
	(loss) reclassified from						(loss) reclassified from
	AOCI into income						AOCI into income
	Three Months Ended						Nine Months Ended
	September 30,						September 30,			Affected line items in the
Derivatives in cash flow hedges	2020		2019		2020		2019		Statement of Operations
Foreign exchange	$	—	$	(2)	$	(3)	$	(3)	Net sales
Commodities	7		4		17		10		Net sales
Foreign exchange	—		1		—		—		Cost of products sold
Commodities	(21)		(16)		(61)		(37)		Cost of products sold
	(14)		(13)		(47)		(30)		Income before taxes
	3		3		12		7		Provision for income taxes
Total reclassified	$	(11)	$	(10)	$	(35)	$	(23)	Net income

The following tables set forth the impact on OCI from changes in the fair value of derivative instruments designated as net investment hedges.


	Amount of gain/(loss)						Amount of gain/(loss)
	recognized in OCI						recognized in OCI
	Three months ended						Nine months ended
	September 30,						September 30,
Derivatives designated as net investment hedges	2020		2019		2020		2019
Foreign exchange	$	(43)	$	40	$	(4)	$	47

Schedule of Impact on Earnings from Derivatives Not Designated as Hedging Instruments

The following table sets forth the impact on earnings from derivatives not designated as hedges.


	Pre-tax amount of gain/						Pre-tax amount of gain/
	(loss) recognized in income						(loss) recognized in
	on derivative						income on derivative
	Three Months Ended						Nine Months Ended
	September 30,						September 30,			Affected line item in the
Derivatives not designated as hedges	2020		2019		2020		2019		Statement of Operations





Foreign exchange	$	—	$	(2)	$	—	$	(3)	Net sales
Foreign exchange	(1)		1		—		3		Cost of products sold

Foreign exchange	13		(14)		19		(25)		Foreign exchange

	$	12	$	(15)	$	19	$	(25)

Fair Value of Outstanding Derivative Instruments in the Consolidated Balance Sheets

The following table sets forth the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2020 and December 31, 2019, respectively. The fair values of these financial instruments were reported under Level 2 of the fair value hierarchy.


	Balance Sheet classification	September 30, 2020		December 31, 2019		Balance Sheet classification		September 30, 2020		December 31, 2019
Derivatives designated as hedging instruments
Foreign exchange contracts cash flow	Other current assets	$	6	$	10	Accrued liabilities		$	7	$	15
	Other non-current assets	1		1		Other non-current liabilities		—		1
Foreign exchange contracts fair value	Other current assets	4		1		Accrued liabilities		1		3

Commodities contracts cash flow	Other current assets	15		11		Accrued liabilities		12		21
	Other non-current assets	4		—		Other non-current liabilities		1		—
Interest rate contracts cash flow	Other non-current assets	—		—		Other non-current liabilities		3		1
Net investment hedge	Other non-current assets	56		51		Other non-current liabilities		11		2
				$	86	$	74			$	35	$	43
Derivatives not designated as hedging instruments
Foreign exchange contracts	Other current assets	$	10	$	7	Accrued liabilities		$	7	$	5
	Other non-current assets	—		2		Other non-current liabilities		—		1




				$	10	$	9			$	7	$	6

Total derivatives		$	96	$	83			$	42	$	49

Schedule of Derivative Instruments Fair Value Hedge Carrying Amount

Fair Value Hedge Carrying Amounts

Carrying amount of the hedged

assets/(liabilities)

September 30,
2020

December 31,
2019

Line item in the Balance Sheet in which the hedged item is included

Receivables, net

Accounts payable

(82)

(83)

Schedule of Offsetting Derivative Assets and Liabilities

In the table below, the aggregate fair values of the Company's derivative assets and liabilities are presented on both a gross and net basis, where appropriate.


	Gross amounts recognized in the Balance Sheet	Gross amounts not offset in the Balance Sheet	Net amount
Balance at September 30, 2020
Derivative assets	$96	$12	$84
Derivative liabilities	42	12	30

Balance at December 31, 2019
Derivative assets	83	16	67
Derivative liabilities	49	16	33

Notional Values of Outstanding Derivative Instruments in the Consolidated Balance Sheet

The aggregate U.S. dollar-equivalent notional values of outstanding derivative instruments in the Consolidated Balance Sheets at September 30, 2020 and December 31, 2019 were:


	September 30, 2020		December 31, 2019
Derivatives designated as cash flow hedges:
Foreign exchange	$	410	$	1,030
Commodities	287		334
Interest rate	200		200
Derivatives designated as fair value hedges:
Foreign exchange	165		142
Derivatives designated as net investment hedges:
Foreign exchange	1,075		1,075
Derivatives not designated as hedges:
Foreign exchange	990		1,017