Derivatives (Tables)

6 Months Ended

Jun. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional Amounts of Derivative Instruments

NOTIONAL AMOUNTS OF DERIVATIVE INSTRUMENTS

The following table presents the notional amounts of the Company's outstanding derivative instruments by type:



	June 30,		December 31,
(in millions)	2020		2019
Interest rate contracts
Receive-fixed, pay-variable interest rate swaps⁽¹⁾	$	—	$	50
Receive-variable, pay-fixed interest rate swaps⁽²⁾	450		575
FX contracts
Forward contracts, not designated as hedging instruments	464		523
Forward contracts, designated as cash flow hedges	21		—
Commodity contracts	580		150


(1)	During the first six months of 2020, the Company elected to terminate $50 million notional amount of receive-fixed, pay-variable interest rate swaps and received cash of $18 million.

(2)

During the first six months of 2020, the Company elected to terminate $575 million notional amount of receive-variable, pay-fixed interest rate swaps and received cash of $2 million.

Schedule of derivative instruments in statement of financial position, fair value

Not Designated as Hedging Instruments

The following table summarizes the fair value hierarchy and the location of the fair value of the Company's derivative instruments which are not designated as hedging instruments within the unaudited Condensed Consolidated Balance Sheets:



(in millions)	Fair Value Hierarchy Level	Balance Sheet Location	June 30, 2020		December 31, 2019
Assets:
Interest rate contracts	2	Prepaid expenses and other current assets	$	—	$	1
FX contracts	2	Prepaid expenses and other current assets	7		—
Commodity contracts	2	Prepaid expenses and other current assets	6		30
Interest rate contracts	2	Other non-current assets	—		18
FX contracts	2	Other non-current assets	9		—
Commodity contracts	2	Other non-current assets	3		1

Liabilities:
Interest rate contracts	2	Other current liabilities	$	2	$	—
FX contracts	2	Other current liabilities	1		2
Commodity contracts	2	Other current liabilities	44		10
Interest rate contracts	2	Other non-current liabilities	6		—
FX contracts	2	Other non-current liabilities	—		3
Commodity contracts	2	Other non-current liabilities	16		1

Designated as Hedging Instruments

The following table summarizes the fair value hierarchy and the location of the fair value of the Company's derivative instruments which are designated as hedging instruments within the unaudited Condensed Consolidated Balance Sheets:



(in millions)	Fair Value Hierarchy Level	Balance Sheet Location	June 30, 2020		December 31, 2019
Assets:
FX contracts	2	Prepaid expenses and other current assets	$	1	$	—

Schedule of derivative instruments not designated as hedging instruments

The following table presents the amount of (gains) losses recognized in the unaudited Condensed Consolidated Statements of Income related to derivative instruments not designated as hedging instruments under U.S. GAAP during the periods presented. Amounts include both realized and unrealized gains and losses.



		Second Quarter						First Six Months
(in millions)	Income Statement Location	2020			2019			2020			2019
Interest rate contracts	Interest expense	$	5		$	2		$	9		$	4
FX contracts	Cost of sales	3			1			(20		)	3
FX contracts	Other (income) expense, net	5			—			(12		)	6
Commodity contracts	Cost of sales	34			(3		)	51			12
Commodity contracts	SG&A expenses	(9		)	2			36			(12		)
Total		$	38		$	2		$	64		$	13

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following table presents the impact of derivative instruments designated as cash flow hedging instruments under U.S. GAAP:



	Second Quarter				First Six Months
(in millions)	2020		2019		2020		2019
FX contracts designated as hedges:
Amount of gain recognized in other comprehensive income⁽¹⁾	$	1	$	—	$	1	$	—

(1)

Amounts expected to be reclassified into net income during the next twelve months.