Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2020

Balance Sheet Classification of derivative instruments


	Fair Value of						Fair Value of
	Hedge Assets						Hedge Liabilities
	March 31,		December 31,		March 31,		March 31,		December 31,		March 31,
	2020		2019		2019		2020		2019		2019
Derivatives designated as hedging instruments:
Commodity forward contracts (a)	$	—	$	1	$	3	$	2	$	—	$	—
Interest rate swaps - fair value hedges (b)		11		8		18				2
Cash flow hedges of foreign exchange risk (c)		66		25		18		4		21		4
Interest rate swaps - cash flow hedges (d)								2		1		1
Net investment hedges (e)		5		2		6						4
Total derivatives accounted for as hedges	$	82	$	36	$	45	$	8	$	24	$	9
Derivatives not designated as hedges:
Foreign exchange derivative contracts (f)		10		2		2		5		—		1
Total derivatives	$	92	$	38	$	47	$	13	$	24	$	10


Current	$	30	$	8	$	23	$	8	$	—	$	3
Noncurrent		62		30		24		5		24		7
Total derivatives	$	92	$	38	$	47	$	13	$	24	$	10

(a) The notional amounts of the commodity forward contracts were $12 million, $13 million and $20 million at March 31, 2020, December 31, 2019 and March 31, 2019, respectively. The maximum maturity dates were in 2020 for all three periods.

(b) The notional amounts of the interest rate swaps designated as fair value hedges were €725 million at March 31, 2020, December 31, 2019 and March 31, 2019, respectively. The maximum maturity dates were in 2025 for March 31, 2020 and December 31, 2019 and 2024 for March 31, 2019.

(c) The notional amounts of the cash flow hedges of foreign exchange risk were $1.424 billion at March 31, 2020 and December 31, 2019 and $797 million at March 31, 2019. The maximum maturity dates were in 2023 for all three periods.

(d) The notional amounts of the interest rate swaps designated as cash flow hedges were $105 million at March 31, 2020 and December 31, 2019 and $180 million at March 31, 2019, respectively. Maximum maturity dates were in 2020 for March 31, 2020 and December 31, 2019 and 2021 for March 31, 2019.

(e) The notional amounts of the net investment hedges were €160 million at March 31, 2020, December 31, 2019 and March 31, 2019. The maximum maturity dates were in 2020 for all three periods.

(f) The notional amounts of the foreign exchange derivative contracts were $306 million, $283 million and $625 million at March 31, 2020, December 31, 2019 and March 31, 2019, respectively. The maximum maturity dates were in 2021, 2019, and 2019 for March 31, 2020, December 31, 2019 and March 31, 2019, 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)
	Three months ended March 31,				Three months ended March 31,
Derivatives designated as hedging instruments:	2020		2019		2020		2019
Cash Flow Hedges
Commodity forward contracts (a)	$	(3)	$	2	$	—	$	—
Cash flow hedges of foreign exchange risk (b)		(66)		7		60		(10)
Cash flow hedges of interest rate risk (c)
Net Investment Hedges
Net Investment Hedges		(4)		5		2		(2)
	$	(73)	$	14	$	62	$	(12)


	Amount of Gain (Loss) Recognized in Other income (expense), net
	Three months ended March 31,
Derivatives not designated as hedges:	2020		2019
Foreign exchange derivative contracts	$	12	$	6

(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.