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Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
Derivative Financial Instruments
Derivatives Designated As Hedges
Net Investment Hedges
The Company uses derivative instruments, such as foreign currency forwards, and non-derivative financial instruments, such as foreign currency denominated debt, that may give rise to foreign currency transaction gains or losses to hedge the foreign currency exposure of net investments in foreign operations. Accordingly, the effective portion of gains and losses from remeasurement of derivative and non-derivative financial instruments is included in foreign currency translation within Accumulated other comprehensive income (loss), net in the unaudited consolidated balance sheets. Gains and losses are reclassified to earnings in the period the hedged investment is sold or liquidated.
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
September 30,
2018
 
As of
December 31,
2017
 
(In € millions)
Total
1,050

 
1,050



Cash Flow Hedges

In September 2018, the Company entered into a forward-starting interest rate swap to mitigate the risk of variability in the benchmark interest rate for an expected debt issuance in 2021. The swap was designated as a cash flow hedge and will be settled upon debt issuance.
The total notional amount of the forward-starting interest rate swap designated as a cash flow hedge is as follows:
 
As of
September 30,
2018
 
As of
December 31,
2017
 
(In $ millions)
Total
400

 
—


Derivatives Not Designated As Hedges
Foreign Currency Forwards and Swaps
Gross notional values of the foreign currency forwards and swaps not designated as hedges are as follows:
 
As of
September 30,
2018
 
As of
December 31,
2017
 
(In $ millions)
Total
693

 
740


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)
 
 
 
Three Months Ended September 30,
 
Statement of Operations Classification
 
2018
 
2017
 
2018
 
2017
 
 
(In $ millions)
 
 
Designated as Cash Flow Hedges
 
 
 
 
 
 
 
 
 
Commodity swaps
2

 
—

 
—

 
1

 
Cost of sales
Interest rate swaps
2

 
—

 
—

 
—

 
Interest expense
Foreign currency forwards
—

 
—

 
—

 
(1
)
 
Cost of sales
Total
4

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Designated as Net Investment Hedges
 
 
 
 
 
 
 
 
 
Foreign currency denominated debt (Note 10)
9

 
(30
)
 
—

 
—

 
N/A
Total
9

 
(30
)
 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Not Designated as Hedges
 
 
 
 
 
 
 
 
 
Foreign currency forwards and swaps
—

 
—

 
(2
)
 
—

 
Foreign exchange gain (loss), net; Other income (expense), net
Total
—

 
—

 
(2
)
 
—

 
 
 
Gain (Loss) Recognized in Other Comprehensive Income (Loss)
 
Gain (Loss) Recognized in Earnings (Loss)
 
 
 
Nine Months Ended September 30,
 
Statement of Operations Classification
 
2018
 
2017
 
2018
 
2017
 
 
(In $ millions)
 
 
Designated as Cash Flow Hedges
 
 
 
 
 
 
 
 
 
Commodity swaps
6

 
1

 
1

 
3

 
Cost of sales
Interest rate swaps
2

 
—

 
—

 
—

 
Interest expense
Foreign currency forwards
1

 
(1
)
 
—

 
(1
)
 
Cost of sales
Total
9

 
—

 
1

 
2

 
 
 
 
 
 
 
 
 
 
 
 
Designated as Net Investment Hedges
 
 
 
 
 
 
 
 
 
Foreign currency denominated debt (Note 10)
44

 
(99
)
 
—

 
—

 
N/A
Total
44

 
(99
)
 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Not Designated as Hedges
 
 
 
 
 
 
 
 
 
Foreign currency forwards and swaps
—

 
—

 
15

 
(2
)
 
Foreign exchange gain (loss), net; Other income (expense), net
Total
—

 
—

 
15

 
(2
)
 
 

See Note 17 for further 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 unaudited consolidated balance sheets is as follows:
 
As of
September 30,
2018
 
As of
December 31,
2017
 
(In $ millions)
Derivative Assets
 
 
 
Gross amount recognized
24

 
13

Gross amount offset in the consolidated balance sheets
9

 
4

Net amount presented in the consolidated balance sheets
15

 
9

Gross amount not offset in the consolidated balance sheets
2

 
3

Net amount
13

 
6

 
As of
September 30,
2018
 
As of
December 31,
2017
 
(In $ millions)
Derivative Liabilities
 
 
 
Gross amount recognized
12

 
7

Gross amount offset in the consolidated balance sheets
9

 
4

Net amount presented in the consolidated balance sheets
3

 
3

Gross amount not offset in the consolidated balance sheets
2

 
3

Net amount
1

 
—