Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments

Balance Sheet Classification of derivative instruments

	Fair Value of
		Hedge Assets				Hedge Liabilities
		2019		2018		2019		2018
Derivatives designated as hedging instruments:
Commodity forward contracts (a)		$	1	$	1	$	—	$	—
Interest rate swaps - fair value hedges (b)			8		6		2		1
Cash flow hedges of foreign exchange risk (c)			25		10		21		1
Interest rate swaps - cash flow hedges (d)							1
Net investment hedges (e)			2		6				8
Total derivatives accounted for as hedges		$	36	$	23	$	24	$	10
Derivatives not designated as hedges:
Foreign exchange derivative contracts (f)			2		2				2
Total derivatives		$	38	$	25	$	24	$	12
Current		$	8	$	19	$	—	$	3
Noncurrent			30		6		24		9
Total derivatives		$	38	$	25	$	24	$	12

(a) The notional amounts of the commodity forward contracts were $13 million and $21 million at December 31, 2019 and December 31, 2018, respectively. The maximum maturity dates were in 2020 for both periods.

(b) The notional amounts of the interest rate swaps designated as fair value hedges were €725 million at December 31, 2019 and December 31, 2018. The maximum maturity dates were in 2025 for December 31, 2019 and 2024 for December 31, 2018.

(c) The notional amounts of the cash flow hedges of foreign exchange risk were $1.424 billion and $587 million at December 31, 2019 and December 31, 2018, respectively. The maximum maturity dates were in 2023 for both periods.

(d) The notional amounts of the interest rate swaps designated as cash flow hedges were $105 million and $180 million at December 31, 2019 and December 31, 2018, respectively. Maximum maturity dates were 2020 at December 31, 2019 and 2020 at December 31, 2018.

(e) The notional amounts of the net investment hedges were €160 million and maximum maturity dates were 2020 at December 31, 2019 and December 31, 2018.

(f) The notional amounts of the foreign exchange derivative contracts were $283 million and $470 million and maximum maturity dates were 2020 and 2019 at December 31, 2019 and December 31, 2018, respectively.

Effects of derivative instruments on the results of operations

	Gain (Loss) Recognized in OCI (Effective Portion)						Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (1)
Derivatives designated as hedging instruments:	2019		2018		2017		2019		2018		2017
Cash Flow Hedges
Commodity forward contracts (a)	$	—	$	(6)	$	6	$	(1)	$	1	$	—
Cash flow hedges of foreign exchange risk (b)		28		12				(30)		9
Cash flow hedges of interest rate risk (c)		(1)		(1)
Net Investment Hedges
Net Investment Hedges		10		5				(7)		1
	$	37	$	10	$	6	$	(38)	$	11	$	—
	Amount of Gain (Loss) Recognized in Other income (expense), net
Derivatives not designated as hedges:	2019		2018		2017
Foreign exchange derivative contracts	$	10	$	1	$	10
(1)  Gains and losses reclassified from accumulated OCI and recognized in income are recorded to (a) cost of goods sold, (b) other expense, net or (c) interest expense, net.