Derivative Financial Instruments

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

Cash Flow Hedges

Cross-currency Swaps

In March 2015, the Company settled its cross-currency swap agreements with notional values of $250 million/€193 million, expiring on September 11, 2020, and $225 million/€162 million, expiring on April 17, 2019, in exchange for cash of $88 million. The Company classifies cash flows from derivative instruments designated as cash flow hedges in the same category of the consolidated statement of cash flows as the cash flows from the items being hedged. Accordingly, the settlement of the cross-currency swap agreements was included in Net cash provided by (used in) operating activities in the consolidated statement of cash flows for the year ended December 31, 2015.

Net Investment Hedges

The total notional amount of foreign currency denominated debt designated as a net investment hedge of net investments in foreign operations are as follows:

	As of December 31,
	2017	2016
	(In € millions)
Total	1,050	850

Foreign Currency Forwards and Swaps

Each of the contracts included in the table below will have approximately offsetting effects from actual underlying payables, receivables, intercompany loans or other assets or liabilities subject to foreign exchange remeasurement. The total US dollar equivalents of net foreign exchange exposure related to (short) long foreign exchange forward contracts outstanding by currency are as follows:

	2017 Maturity
	(In $ millions)
Currency
Brazilian real	(13	)
British pound sterling	(93	)
Canadian dollar	36
Euro	(6	)
Hungarian forint	10
Korean won	10
Singapore dollar	32
Swedish krona	(4	)
Total	(28	)

Gross notional values of the foreign currency forwards and swaps are as follows:

	As of December 31,
	2017	2016
	(In $ millions)
Total	740	508

Hedging activity for foreign currency forwards and commodity swaps is as follows:

	Year Ended December 31,			Statement of Operations Classification
	2017	2016	2015
	(In $ millions)
Hedging activities	4	2	2	Cost of sales
Ineffective portion of hedging activities	—	—	—	Other income (expense), net

Information regarding changes in the fair value of the Company's derivative and non-derivative instruments is as follows:

	Gain (Loss) Recognized in Other Comprehensive Income (Loss)				Gain (Loss) Recognized in Earnings (Loss)					Statement of Operations Classification
	Year Ended December 31,				Year Ended December 31,
	2017		2016	2015	2017		2016	2015
	(In $ millions)
Designated as Cash Flow Hedges
Commodity swaps	4		7	—	5		2	—		Cost of sales
Cross-currency swaps	—		—	—	—		—	46		Other income (expense), net or Foreign exchange gain (loss)
Foreign currency forwards	(1	)	—	—	(1	)	—	—		Cost of sales
Total	3		7	—	4		2	46
Designated as a Net Investment Hedge
Foreign currency denominated debt (Note 14)	(119	)	61	48	—		—	—		N/A
Foreign currency forwards	2		—	—	—		—	—		N/A
Total	(117	)	61	48	—		—	—
Not Designated as Hedges
Interest rate swaps	—		—	—	—		—	(1	)	Interest expense
Foreign currency forwards and swaps	—		—	—	2		14	(82	)	Foreign exchange gain (loss), net; Other income (expense), net
Total	—		—	—	2		14	(83	)

See Note 23 for additional information regarding the fair value of the Company's derivative instruments.

Certain of the Company's commodity swaps and foreign currency forwards and swaps permit the Company to net settle all contracts with the counterparty through a single payment in an agreed upon currency in the event of default or early termination of the contract, similar to a master netting arrangement.

Information regarding the gross amounts of the Company's derivative instruments and the amounts offset in the consolidated balance sheets is as follows:

	As of December 31,
	2017	2016
	(In $ millions)
Derivative Assets
Gross amount recognized	13	14
Gross amount offset in the consolidated balance sheets	4	4
Net amount presented in the consolidated balance sheets	9	10
Gross amount not offset in the consolidated balance sheets	3	2
Net amount	6	8

	As of December 31,
	2017	2016
	(In $ millions)
Derivative Liabilities
Gross amount recognized	7	7
Gross amount offset in the consolidated balance sheets	4	4
Net amount presented in the consolidated balance sheets	3	3
Gross amount not offset in the consolidated balance sheets	3	2
Net amount	—	1