O-I Glass (OI) 10-Q 31 Oct 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2018shares
Document and Entity Information
Entity Registrant Name	OWENS ILLINOIS INC /DE/
Entity Central Index Key	812,074
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	158,698,663
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

CONSOLIDATED RESULTS OF OPERATI

CONSOLIDATED RESULTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
CONSOLIDATED RESULTS OF OPERATIONS
Net sales	$ 1,734	$ 1,791	$ 5,242	$ 5,157
Cost of goods sold	(1,410)	(1,438)	(4,253)	(4,143)
Gross profit	324	353	989	1,014
Selling and administrative expense	(115)	(120)	(367)	(362)
Research, development and engineering expense	(17)	(15)	(50)	(46)
Interest expense, net	(63)	(63)	(199)	(204)
Equity earnings	19	22	57	55
Other income (expense), net	20	(5)	(49)	(61)
Earnings from continuing operations before income taxes	168	172	381	396
Provision for income taxes	(41)	(37)	(95)	(65)
Earnings from continuing operations	127	135	286	331
Loss from discontinued operations		(2)	(1)	(2)
Net earnings	127	133	285	329
Net earnings attributable to noncontrolling interests	(7)	(7)	(18)	(15)
Net earnings attributable to the Company	120	126	267	314
Amounts attributable to the Company:
Earnings from continuing operations	120	128	268	316
Loss from discontinued operations		(2)	(1)	(2)
Net earnings attributable to the Company	$ 120	$ 126	$ 267	$ 314
Basic earnings per share:
Earnings from continuing operations (in dollars per share)	$ 0.75	$ 0.78	$ 1.67	$ 1.94
Loss from discontinued operations (in dollars per share)		(0.01)	(0.01)	(0.01)
Net earnings (in dollars per share)	$ 0.75	$ 0.77	$ 1.66	$ 1.93
Weighted average shares outstanding (thousands) (in shares)	159,032	162,866	160,936	162,658
Diluted earnings per share:
Earnings from continuing operations (in dollars per share)	$ 0.75	$ 0.77	$ 1.65	$ 1.92
Loss from discontinued operations (in dollars per share)		(0.01)	(0.01)	(0.01)
Net earnings (in dollars per share)	$ 0.75	$ 0.76	$ 1.64	$ 1.91
Weighted average diluted shares outstanding (thousands) (in shares)	161,035	164,993	162,977	164,440

CONSOLIDATED COMPREHENSIVE INCO

CONSOLIDATED COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
CONSOLIDATED COMPREHENSIVE INCOME
Net earnings	$ 127	$ 133	$ 285	$ 329
Other comprehensive income (loss):
Foreign currency translation adjustments	32	10	(110)	212
Pension and other postretirement benefit adjustments, net of tax	15	10	51	25
Change in fair value of derivative instruments, net of tax	(1)		(7)	(10)
Other comprehensive income (loss)	46	20	(66)	227
Total comprehensive income	173	153	219	556
Comprehensive income (loss) attributable to noncontrolling interests	1	(8)		(8)
Comprehensive income attributable to the Company	$ 174	$ 145	$ 219	$ 548

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 440	$ 492	$ 339
Trade receivables, net of allowance of $35 million, $34 million, and $36 million at September 30, 2018, December 31, 2017 and September 30, 2017	992	663	1,028
Inventories	973	1,036	1,046
Prepaid expenses and other current assets	259	229	254
Total current assets	2,664	2,420	2,667
Property, plant and equipment, net	3,044	3,131	3,036
Goodwill	2,549	2,590	2,621
Intangibles, net	422	439	473
Other assets	1,261	1,176	1,202
Total assets	9,940	9,756	9,999
Current liabilities:
Accounts payable	1,048	1,324	1,087
Short-term loans and long-term debt due within one year	152	162	243
Current portion of asbestos-related liabilities	100	100	115
Other liabilities	604	579	617
Other liabilities - discontinued operations	115	115	115
Total current liabilities	2,019	2,280	2,177
Long-term debt	5,487	5,121	5,378
Asbestos-related liabilities	442	482	528
Other long-term liabilities	925	946	977
Share owners' equity	1,067	927	939
Total liabilities and share owners' equity	$ 9,940	$ 9,756	$ 9,999

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
CONSOLIDATED BALANCE SHEETS
Trade receivables allowance	$ 35	$ 34	$ 36

CONDENSED CONSOLIDATED CASH FLO

CONDENSED CONSOLIDATED CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net earnings	$ 285	$ 329
Loss from discontinued operations	1	2
Non-cash charges
Depreciation and amortization	384	372
Pension expense	25	22
Restructuring, asset impairment and related charges	70	48
Cash payments
Pension contributions	(26)	(28)
Asbestos-related payments	(40)	(49)
Cash paid for restructuring activities	(21)	(30)
Change in components of working capital	(545)	(601)
Other, net (a)	(34)	(26)
Cash provided by continuing operating activities	99	39
Cash utilized in discontinued operating activities	(1)	(2)
Total cash provided by operating activities	98	37
Cash flows from investing activities:
Cash payments for property, plant and equipment	(383)	(292)
Acquisitions, net of cash acquired	(48)	(37)
Net cash proceeds on disposal of assets	10	14
Cash utilized in continuing investing activities	(421)	(315)
Cash provided by discontinued investing activities		115
Total cash utilized in investing activities	(421)	(200)
Cash flows from financing activities:
Changes in borrowings, net	413	23
Issuance of common stock and other	1	(5)
Treasury shares repurchased	(107)
Payment of finance fees	(13)	(23)
Distributions to noncontrolling interests	(9)	(9)
Cash provided by (utilized in) financing activities	285	(14)
Effect of exchange rate fluctuations on cash	(14)	24
Change in cash	(52)	(153)
Cash at beginning of period	492	492
Cash at end of period	$ 440	$ 339

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2018
Segment Information
Segment Information	1. Segment Information The Company has three reportable segments and three operating segments based on its geographic locations: Americas, Europe, and Asia Pacific. These three segments are aligned with the Company’s internal approach to managing, reporting, and evaluating performance of its global glass operations. As previously disclosed, to better leverage its scale and presence across a larger geography and market, the Company completed the consolidation of the former North America and Latin America segments into one segment, named the Americas, effective January 1, 2018. The consolidation resulted in the leadership roles of the former North America and Latin America segments being combined into one position, President of the Americas, reporting to the Company’s chief operating decision maker (“CODM”), who is the Company’s Chief Executive Officer. Beginning January 1, 2018, the CODM reviews the operating results at the Americas level to make resource allocation decisions and to assess performance. The consolidation also resulted in the elimination of duplicative costs as certain functions of the former North America and Latin America segments were combined to simplify the management of the new Americas segment. For example, the Company consolidated its business shared service centers in North America and Latin America into one Americas shared service center. Certain assets and activities not directly related to one of the regions or to glass manufacturing are reported with Retained corporate costs and other. These include licensing, equipment manufacturing, global engineering, and certain equity investments. Retained corporate costs and other also includes certain headquarters administrative and facilities costs and certain incentive compensation and other benefit plan costs that are global in nature and are not allocable to the reportable segments. The Company’s measure of profit for its reportable segments is segment operating profit, which is a non-GAAP financial measure that consists of consolidated earnings from continuing operations before interest income, interest expense, and provision for income taxes and excludes amounts related to certain items that management considers not representative of ongoing operations as well as certain retained corporate costs. The Company’s management uses segment operating profit, in combination with net sales and selected cash flow information, to evaluate performance and to allocate resources. Segment operating profit for reportable segments includes an allocation of some corporate expenses based on both a percentage of sales and direct billings based on the costs of specific services provided. Financial information for the three and nine months ended September 30, 2018 and 2017 regarding the Company’s reportable segments is as follows: Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Net sales: Americas $ 939 $ 963 $ 2,777 $ 2,774 Europe 613 624 1,930 1,813 Asia Pacific 165 188 491 516 Reportable segment totals 1,717 1,775 5,198 5,103 Other 17 16 44 54 Net sales $ 1,734 $ 1,791 $ 5,242 $ 5,157 Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Segment operating profit: Americas $ 158 $ 159 $ 458 $ 459 Europe 87 81 260 220 Asia Pacific 10 20 16 51 Reportable segment totals 255 260 734 730 Items excluded from segment operating profit: Retained corporate costs and other (24) (25) (81) (81) Restructuring, asset impairment and other (73) (49) Interest expense, net (63) (63) (199) (204) Earnings from continuing operations before income taxes $ 168 $ 172 $ 381 $ 396 Financial information regarding the Company’s total assets is as follows: September 30, December 31, September 30, 2018 2017 2017 Total assets: Americas $ 5,455 $ 5,411 $ 5,598 Europe 3,220 3,133 3,140 Asia Pacific 999 1,001 1,046 Reportable segment totals 9,674 9,545 9,784 Other 266 211 215 Consolidated totals $ 9,940 $ 9,756 $ 9,999

Revenue

Revenue	9 Months Ended
	Sep. 30, 2018
Revenue
Revenue	2. Revenue On January 1, 2018, the Company adopted accounting standard ASC 606, Revenue from Contracts with Customers, and selected the modified retrospective transition method. The adoption of this new standard did not impact the Company’s consolidated results of operations or balance sheet and there was no cumulative effect of initially applying this new revenue standard to the opening balance of retained earnings. Revenue is recognized when obligations under the terms of the Company’s contracts and related purchase orders with its customers are satisfied. This occurs with the transfer of control of glass containers, which primarily takes place when products are shipped from the Company’s manufacturing or warehousing facilities to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods, which includes estimated provisions for rebates, discounts, returns and allowances. Sales, value added, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. The Company’s payment terms are based on customary business practices and can vary by customer type. The term between invoicing and when payment is due is not significant. Also, the Company elected to account for shipping and handling costs as a fulfillment cost at the time of shipment. For the three and nine months ended September 30, 2018, the Company had no material bad debt expense and there were no material contract assets, contract liabilities or deferred contract costs recorded on the Condensed Consolidated Balance Sheet. For the three and nine months ended September 30, 2018, revenue recognized from prior periods (for example, due to changes in transaction price) was not material. The following table for three months ended September 30, 2018 disaggregates the Company’s revenue by customer end use: Three months ended September 30, 2018 Americas Europe Asia Pacific Total Alcoholic beverages (beer, wine, spirits) $ 582 $ 419 $ 121 $ 1,122 Food and other 209 127 24 360 Non-alcoholic beverages 148 67 20 235 Reportable segment totals $ 939 $ 613 $ 165 $ 1,717 Other 17 Net sales $ 1,734 The following table for nine months ended September 30, 2018 disaggregates the Company’s revenue by customer end use: Nine months ended September 30, 2018 Americas Europe Asia Pacific Total Alcoholic beverages (beer, wine, spirits) $ 1,743 $ 1,383 $ 361 $ 3,487 Food and other 594 351 72 1,017 Non-alcoholic beverages 440 196 58 694 Reportable segment totals $ 2,777 $ 1,930 $ 491 $ 5,198 Other 44 Net sales $ 5,242

Inventories

Inventories	9 Months Ended
	Sep. 30, 2018
Inventories
Inventories	3. Inventories Major classes of inventory at September 30, 2018, December 31, 2017 and September 30, 2017 are as follows: September 30, December 31, September 30, 2018 2017 2017 Finished goods $ 808 $ 873 $ 875 Raw materials 119 122 129 Operating supplies 46 41 42 $ 973 $ 1,036 $ 1,046

Derivative Instruments

Derivative Instruments	9 Months Ended
	Sep. 30, 2018
Derivative Instruments
Derivative Instruments	4. Derivative Instruments The Company has certain derivative assets and liabilities which consist of natural gas forwards, foreign exchange option and forward contracts, interest rate swaps and cross currency swaps. The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative an income approach to value most of these contracts. Natural gas forward rates and foreign exchange rates are the significant inputs into the valuation models. The Company also evaluates counterparty risk in determining fair values. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. These inputs are observable in active markets over the terms of the instruments the Company holds, and accordingly, the Company classifies its derivative assets and liabilities as Level 2 in the hierarchy. Commodity Forward Contracts Designated as Cash Flow Hedges In several regions, the Company enters into commodity forward contracts related to forecasted natural gas requirements, the objectives of which are to limit the effects of fluctuations in the future market price paid for natural gas and the related volatility in cash flows. In the Americas, some customer contracts contain provisions that pass the price of natural gas to the customer, which the customer has the option of fixing for a specified period of time. To limit the effects of fluctuations in cash flows resulting from these customer contracts, the Company enters into commodity forward contracts related to forecasted natural gas requirements. In Asia Pacific, the Company implemented a hedging program that included the execution of commodity forward contracts for certain contracted natural gas requirements. In total, the Company had entered into commodity forward contracts covering approximately 7,600,000 MM BTUs at September 30, 2018, 8,800,000 MM BTUs at December 31, 2017 and 9,300,000 MM BTUs at September 30, 2017, respectively. The Company accounts for the above forward contracts as cash flow hedges and recognizes them on the Condensed Consolidated Balance Sheet at fair value. The effective portion of changes in the fair value of a derivative that is designated as, and meets the required criteria for, a cash flow hedge is recorded in the Accumulated Other Comprehensive Income component of share owners’ equity (“OCI”) and reclassified into earnings in the same period or periods during which the underlying hedged item affects earnings. An unrecognized loss of $8 million at September 30, 2018, an unrecognized gain of $3 million at December 31, 2017 and an unrecognized loss of less than $1 million at September 30, 2017 related to the commodity forward contracts was included in Accumulated OCI, and will be reclassified into earnings in the period when the commodity forward contracts expire. Any material portion of the change in the fair value of a derivative designated as a cash flow hedge that is deemed to be ineffective is recognized in current earnings. The ineffectiveness related to these natural gas hedges for the three and nine months ended September 30, 2018 and 2017 was not material. The effect of the commodity forward contracts on the results of operations for the three months ended September 30, 2018 and September 30, 2017 is as follows: Amount of Gain (Loss) Reclassified from Amount of Gain (Loss) Recognized in OCI on Accumulated OCI into Income Commodity Forward Contracts (reported in cost of goods sold) (Effective Portion) (Effective Portion) 2018 2017 2018 2017 $ 1 $ (1) $ — $ — The effect of the commodity forward contracts on the results of operations for the nine months ended September 30, 2018 and September 30, 2017 is as follows: Amount of Gain (Loss) Reclassified from Amount of Gain Recognized in OCI on Accumulated OCI into Income Commodity Forward Contracts (reported in cost of goods sold) (Effective Portion) (Effective Portion) 2018 2017 2018 2017 $ 6 $ 3 $ (1) $ — Foreign Exchange Derivative Contracts and not Designated as Hedging Instruments The Company may enter into short-term forward exchange or option agreements to purchase foreign currencies at set rates in the future. These agreements are used to limit exposure to fluctuations in foreign currency exchange rates for significant planned purchases of fixed assets or commodities that are denominated in currencies other than the subsidiaries’ functional currency. The Company may also use foreign exchange agreements to offset the foreign currency risk for receivables and payables, including intercompany receivables, payables, and loans, not denominated in, or indexed to, their functional currencies. The Company records these short-term foreign exchange agreements on the balance sheet at fair value and changes in the fair value are recognized in current earnings. At September 30, 2018, December 31, 2017 and September 30, 2017, the Company had outstanding foreign exchange and option agreements denominated in various currencies covering the equivalent of approximately $410 million, $460 million and $320 million, respectively, related primarily to intercompany transactions and loans. The effect of the foreign exchange derivative contracts on the results of operations for the three months ended September 30, 2018 and September 30, 2017 is as follows: Amount of Gain (Loss) Location of Gain (Loss) Recognized in Income on Recognized in Income on Foreign Exchange Contracts Foreign Exchange Contracts 2018 2017 Other expense, net $ — $ (2) The effect of the foreign exchange derivative contracts on the results of operations for the nine months ended September 30, 2018 and September 30, 2017 is as follows: Amount of Gain (Loss) Location of Gain (Loss) Recognized in Income on Recognized in Income on Foreign Exchange Contracts Foreign Exchange Contracts 2018 2017 Other expense, net $ (1) $ 4 Cash Flow Hedges of Foreign Exchange Risk The Company has variable-interest rate borrowings denominated in currencies other than the functional currency of the borrowing subsidiaries. As a result, the Company is exposed to fluctuations in the currency of the borrowing against the subsidiaries’ functional currency. The Company uses derivatives to manage these exposures and designates these derivatives as cash flow hedges of foreign exchange risk. For these derivatives designated as cash flow hedges of foreign exchange risk the gain or loss on the derivative is recorded in Accumulated OCI and is subsequently reclassified into earnings in the period for which the hedged forecasted transaction affects earnings. If there is an ineffective portion of the change in fair value of the derivative it is recognized directly in earnings. During the fourth quarter of 2017, one of the Company’s Euro-functional subsidiaries entered into a series of cross-currency swaps to manage its exposure to fluctuations in the Euro-U.S. dollar exchange rate arising from a U.S. dollar denominated borrowing. These swaps involve exchanging fixed rate Euro interest payments for fixed rate U.S. dollar interest receipts, both of which will occur at the forward exchange rates in effect upon entering into the instrument. An unrecognized loss of $9 million at September 30, 2018 and an unrecognized loss of less than $1 million at December 31, 2017, related to these cross-currency swaps, were included in Accumulated OCI, and will be reclassified into earnings within the next twelve months. These instruments, in the aggregate, have a pay fixed notional amount of €263 million and a receive notional amount of $310 million. They reach final maturity in 2023. There was no ineffectiveness related to these cross-currency interest rate swaps for the three and nine months ended September 30, 2018. During the second quarter of 2018, two of the Company’s subsidiaries, a New Zealand dollar (“NZD”) functional currency subsidiary and an Australian dollar (“AUD”) functional currency subsidiary, entered into a series of cross-currency swaps to manage its exposure to fluctuations in the NZD-U.S. dollar exchange rate and the AUD-U.S. dollar exchange rate arising from U.S. dollar denominated borrowings. These swaps involve exchanging floating rate U.S. dollar interest receipts for fixed rate NZD and AUD interest payments, both of which will occur at the forward exchange rates in effect upon entering into the instrument. An unrecognized loss of $3 million at September 30, 2018 related to these cross-currency swaps, was included in Accumulated OCI, and will be reclassified into earnings within the next twelve months. The NZD to U.S. dollar instruments, in the aggregate, have a pay fixed notional amount of NZD $161 million and a receive notional amount of $110 million. They reach final maturity in 2022. The AUD to U.S. dollar instruments, in the aggregate, have a pay fixed notional amount of AUD $231 million and a receive notional amount of $170 million. They reach final maturity in 2022. There was no ineffectiveness related to these cross-currency swaps for the three and nine months ended September 30, 2018. The effect of the cash flow hedges of foreign exchange risk on the results of operations for the three months ended September 30, 2018 is as follows: Amount of Gain (Loss) Reclassified from Amount of Gain (Loss) Recognized in OCI on Accumulated OCI into Income Cash Hedges of Foreign Exchange Risk (reported in Other expense, net) (Effective Portion) (Effective Portion) $ 7 $ (9) The effect of the cash flow hedges of foreign exchange risk on the results of operations for the nine months ended September 30, 2018 is as follows: Amount of Gain (Loss) Reclassified from Amount of Gain (Loss) Recognized in OCI on Accumulated OCI into Income Cash Hedges of Foreign Exchange Risk (reported in Other expense, net) (Effective Portion) (Effective Portion) $ 8 $ 1 Interest Rate Swaps Designated as Fair Value Hedges During 2017, the Company entered into a series of interest rate swap agreements with a total notional amount of €725 million that reach final maturity in 2024. The swaps were executed in order to maintain a capital structure containing appropriate amounts of fixed and floating-rate debt. The Company’s fixed-to-variable interest rate swaps were accounted for as fair value hedges. The relevant terms of the swap agreements match the corresponding terms of the notes and therefore there is no hedge ineffectiveness. The Company recorded the net of the fair market values of the swaps as a long-term liability and short-term asset along with a corresponding net decrease in the carrying value of the hedged debt. Under the swaps, the Company receives fixed rate interest amounts (equal to the interest on the corresponding hedged note) and pays interest at a six-month Euribor rate (set in arrears) plus a margin spread (see table below). The interest rate differential on each swap is recognized as an adjustment of interest expense during each six-month period over the term of the agreement. The following selected information relates to fair value swaps at September 30, 2018: Amount Hedged Receive Rate Average Spread Senior Notes due 2024 € 725 3.125 % 2.6 % Cash Flow Hedges of Interest Rate Risk During the third quarter of 2018, the Company entered into a series of interest rate swap agreements with a total notional amount of $180 million. These interest rate swaps reach final maturity in 2020. The Company’s objectives in using interest rate derivatives are to manage its exposure to interest rate movements. To accomplish this objective, the Company uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments. These interest rate swap agreements were used to hedge the variable cash flows associated with variable-rate debt. Under the swaps, the Company pays fixed rate interest and receives floating rate interest amounts at a one month Libor rate plus a margin spread of 1.25%. The interest rate differential on each swap is recognized as an adjustment of interest expense during each monthly period over the term of the agreement. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. An unrecognized gain of less than $1 million at September 30, 2018 related to these interest rate swaps, was included in Accumulated OCI, and will be reclassified into earnings within the next twelve months. For the three months ended September 30, 2018 there was a loss of less than $1 million recorded into Accumulated OCI and a gain of less than $1 million reclassified from Accumulated OCI into interest expense. Net Investment Hedges The Company is exposed to fluctuations in foreign exchange rates on investments it holds in non-U.S. subsidiaries. The Company uses cross currency swaps to hedge its exposure to changes in foreign exchange rates on certain of these investments. During the third quarter of 2018, the Company entered into a series of cross currency swap agreements with a pay notional amount of € 154 million and a receive notional amount is $180 million that reach final maturity in 2020. These cross-currency swaps involve the receipt of USD fixed rate amounts from a counterparty in exchange for the Company making Euro fixed payments over the life of the agreement. For derivatives designated as net investment hedges, the gain or loss on the derivative is reported in Accumulated Other Comprehensive Income as part of the cumulative translation adjustment. Amounts are reclassified out of Accumulated Other Comprehensive Income into earnings when the hedged net investment is either sold or substantially liquidated. For the three months ended September 30, 2018 there was a loss of less than $1 million recorded into Accumulated OCI. Balance Sheet Classification The Company records the fair values of derivative financial instruments on the balance sheet as follows: (a) receivables if the instrument has a positive fair value and maturity within one year, (b) deposits, receivables, and other assets if the instrument has a positive fair value and maturity after one year, (c) other accrued liabilities or other liabilities (current) if the instrument has a negative fair value and maturity within one year, and (d) other accrued liabilities or other liabilities if the instrument has a negative fair value and maturity after one year. The following table shows the amount and classification (as noted above) of the Company’s derivatives at September 30, 2018, December 31, 2017 and September 30, 2017: Fair Value Current Balance September 30, December 31, September 30, Sheet Location 2018 2017 2017 Asset Derivatives: Derivatives designated as hedging instruments: Commodity futures contracts b $ 8 $ 3 $ 1 Interest rate swaps designated as fair value hedges a 4 6 2 Cash flow hedges of foreign exchange risk a 11 4 Net investment hedges a 5 Derivatives not designated as hedging instruments: Foreign exchange derivative contracts a 2 4 2 Total asset derivatives $ 30 $ 17 $ 5 Liability Derivatives: Derivatives designated as hedging instruments: Commodity futures contracts c $ — $ — $ 1 Interest rate swaps designated as fair value hedges d 11 13 5 Cash flow hedges of foreign exchange risk d 12 10 Net investment hedges d 5 Derivatives not designated as hedging instruments: Foreign exchange derivative contracts c 1 1 3 Total liability derivatives $ 29 $ 24 $ 9

Restructuring Accruals

Restructuring Accruals	9 Months Ended
	Sep. 30, 2018
Restructuring Accruals
Restructuring Accruals	5. Restructuring Accruals Selected information related to the restructuring accruals for the three months ended September 30, 2018 and 2017 is as follows: Employee Asset Other Total Costs Impairment Exit Costs Restructuring Balance at July 1, 2018 $ 71 $ $ 16 $ 87 Net cash paid, principally severance and related benefits (8) (1) (9) Other, including foreign exchange translation (1) (2) (3) Balance at September 30, 2018 $ $ — $ $ Employee Asset Other Total Costs Impairment Exit Costs Restructuring Balance at July 1, 2017 $ 94 $ $ 17 $ 111 Net cash paid, principally severance and related benefits (11) (3) (14) Other, including foreign exchange translation 1 1 Balance at September 30, 2017 $ 84 $ — $ 14 $ 98 Selected information related to the restructuring accruals for the nine months ended September 30, 2018 and 2017 is as follows: Employee Asset Other Total Costs Impairment Exit Costs Restructuring Balance at January 1, 2018 $ 67 $ $ 18 $ 85 Charges 15 53 2 70 Write-down of assets to net realizable value (53) (53) Net cash paid, principally severance and related benefits (18) (3) (21) Other, including foreign exchange translation (2) (4) (6) Balance at September 30, 2018 $ 62 $ — $ 13 $ 75 Employee Asset Other Total Costs Impairment Exit Costs Restructuring Balance at January 1, 2017 $ 67 $ $ 18 $ 85 Charges 34 9 5 48 Write-down of assets to net realizable value (9) (9) Net cash paid, principally severance and related benefits (21) (9) (30) Other, including foreign exchange translation 4 4 Balance at September 30, 2017 $ 84 $ — $ 14 $ 98 When a decision is made to take restructuring actions, the Company manages and accounts for them programmatically apart from the on-going operations of the business. Information related to major programs are presented separately while minor initiatives are presented on a combined basis. As of September 30, 2018 and 2017, no major restructuring programs were in effect. For the nine months ended September 30, 2018, the Company implemented several discrete restructuring initiatives and recorded restructuring, asset impairment and other charges of $70 million. These charges consisted of employee costs, write-down of assets, and other exit costs primarily related to a plant closure in the Americas region. These restructuring charges were discrete actions and are expected to approximate the total cumulative costs for those actions as no significant additional costs are expected to be incurred. These restructuring charges primarily relate to capacity curtailments and the Company plans to reallocate the products produced at these facilities to other facilities. These charges were recorded to Cost of goods sold ($5 million) and Other expense, net ($65 million) on the Condensed Consolidated Results of Operations. The Company expects that the majority of the remaining cash expenditures related to the above charges will be paid out by the end of 2019. No restructuring initiatives were implemented in the three months ended September 30, 2018. For the nine months ended September 30, 2017, the Company implemented several discrete restructuring initiatives and recorded restructuring, asset impairment and other charges of $48 million. These charges primarily consisted of employee costs, write-down of assets, and other exit costs in the following regions: Americas ($35 million) and Europe ($13 million). The restructuring charges recorded were discrete actions and are expected to approximate the total cumulative costs for those actions as no significant additional costs are expected to be incurred. The restructuring charges recorded in the Americas and European regions primarily relate to capacity curtailments. The Company plans to reallocate the products produced at these facilities to others in their respective regions. These charges were recorded to Other expense, net on the Condensed Consolidated Results of Operations. The Company expects that the majority of the remaining cash expenditures related to the above charges will be paid out by the end of 2018. No restructuring initiatives were implemented in the three months ended September 30, 2017. The Company’s decisions to curtail selected production capacity have resulted in write downs of certain long-lived assets to the extent their carrying amounts exceeded fair value or fair value less cost to sell. The Company classified the significant assumptions used to determine the fair value of the impaired assets as Level 3 (third party appraisal) in the fair value hierarchy as set forth in the general accounting principles for fair value measurements. For the asset impairments recorded through September 30, 2018 and September 30, 2017, the remaining carrying value of the impaired assets was approximately $3 million and $0, respectively.

Pension Benefit Plans

Pension Benefit Plans	9 Months Ended
	Sep. 30, 2018
Pension Benefit Plans
Pension Benefit Plans	6. Pension Benefit Plans The components of the net periodic pension cost for the three months ended September 30, 2018 and 2017 are as follows: U.S. Non-U.S. 2018 2017 2018 2017 Service cost $ 4 $ 4 $ 4 $ 4 Interest cost 15 20 7 11 Expected asset return (25) (33) (13) (18) Amortization of Actuarial loss 13 14 3 5 Net periodic pension cost $ 7 $ 5 $ 1 $ 2 The components of the net periodic pension cost for the nine months ended September 30, 2018 and 2017 are as follows: U.S. Non-U.S. 2018 2017 2018 2017 Service cost $ 11 $ 11 $ 11 $ 12 Interest cost 45 59 23 33 Expected asset return (74) (98) (40) (54) Amortization of Actuarial loss 39 44 10 15 Net periodic pension cost $ 21 $ 16 $ 4 $ 6

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Taxes
Income Taxes	7 . Income Taxes The Company calculates its interim tax provision using the estimated annual effective tax rate (“EAETR”) methodology in accordance with ASC 740-270. The EAETR is applied to the year-to-date ordinary income, exclusive of discrete items. The tax effect of discrete items are then included to arrive at the total reported interim tax provision. The determination of the EAETR is based upon a number of estimates, including the estimated annual pretax ordinary income or loss in each tax jurisdiction in which the Company operates. The tax effects of discrete items are recognized in the tax provision in the quarter they occur. Depending on various factors such as the item’s significance in relation to total income and the rate of tax applicable in the jurisdiction to which it relates, discrete items in any quarter can materially impact the reported effective tax rate. The Company’s annual effective tax rate may be affected by the mix of earnings in the U.S. and foreign jurisdictions and such factors as changes in tax laws, tax rates or regulations, changes in business, changing interpretation of existing tax laws or regulations, the finalization of tax audits and reviews, as well as other factors. As such, there can be significant volatility in interim tax provisions. The annual effective tax rate differs from the statutory U.S. Federal tax rate of 21% for 2018 and 35% for 2017 primarily because of varying non-U.S. tax rates and valuation allowances in some jurisdictions, respectively. The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. The Act reduces the U.S. federal corporate income tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. The Company is applying the guidance in Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cut and Jobs Act when accounting for the enactment-date effects of the Act. At September 30, 2018, the Company has not completed its accounting for the tax effects of the Act; however, it has made reasonable estimates of the tax effects. During the three and nine months ended September 30, 2018, the Company has not recorded any adjustments to the provisional amounts recorded at December 31, 2017 related to the remeasurement of its deferred balances. During the three months ended September 30, 2018, the Company refined its estimate of the provisional amount of the one-time transition tax. At December 31, 2017, the Company originally recorded a provisional amount for its one-time transition tax of $331 million, which was expected to be substantially offset by available foreign tax credits resulting in a provisional net tax expense of $2 million, primarily attributable to state taxes. Upon further analyses of certain aspects of the Act and refinement of its calculations during the three months ended September 30, 2018, the Company decreased its provisional amount of transition tax by $17 million, to $314 million. This resulted in no change to income tax expense due to the impact of foreign tax credits. Therefore, the provisional net tax expense is approximately $2 million, primarily attributable to state taxes. In all cases, the Company is continuing to make and refine its federal and state calculations as additional analysis is completed. In addition, the Company’s estimates may also be affected as it gains a more thorough understanding of the Act and certain aspects of the Act are clarified by the taxing authorities. The Act subjects a U.S. shareholder to current tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. At December 31, 2017, the Company elected to recognize the resulting tax on GILTI as a period expense in the period the tax is incurred. The Company has made sufficient progress in its calculation to reasonably estimate the tax expense related to GILTI for the year ended December 31, 2018 and included it in the EAETR. The impact of GILTI resulted in no incremental tax expense for the three and nine months ended September 30, 2018 due to net operating loss carryforwards, foreign tax credits and a full valuation allowance on U.S. net deferred tax assets. The Company will continue to refine its calculations, which may result in changes to the expected impact for 2018. The Company maintains its assertion on a provisional basis that it intends to continue to indefinitely reinvest the gross book-tax differences in its foreign consolidated subsidiaries. However, the Company records deferred foreign taxes on gross book-tax basis differences to the extent of foreign distributable reserves for certain foreign subsidiaries. Determining the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings not subject to the transition tax and additional outside basis differences in these entities (i.e., basis difference in excess of that subject to the one-time transition tax) is not practicable. The Company is currently under examination in various tax jurisdictions in which it operates, including Bolivia, Brazil, Canada, China, Colombia, France, Germany, and Indonesia. The years under examination range from 2004 through 2015. The Company has received tax assessments in excess of established reserves for uncertain tax positions. The Company is contesting these tax assessments, and will continue to do so, including pursuing all available remedies such as appeals and litigation, if necessary. The Company believes that adequate provisions for all income tax uncertainties have been made. However, if income tax assessments are settled against the Company at amounts in excess of established reserves, it could have a material impact on the Company’s results of operations, financial position or cash flows.

Debt

Debt	9 Months Ended
	Sep. 30, 2018
Debt
Debt	8. Debt The following table summarizes the long-term debt of the Company: September 30, December 31, September 30, 2018 2017 2017 Secured Credit Agreement: Revolving Credit Facility: Revolving Loans $ 335 $ — $ — Term Loans: Term Loan A 908 Previous Secured Credit Agreement: Revolving Credit Facility: Revolving Loans 200 Term Loans: Term Loan A 1,148 1,202 Term Loan A (€279 million) 308 Other secured debt 329 Senior Notes: 6.75%, due 2020 (€500 million) 580 594 586 4.875%, due 2021 (€330 million) 382 392 386 5.00%, due 2022 497 496 496 4.00%, due 2023 306 305 5.875%, due 2023 687 685 684 3.125%, due 2024 (€725 million) 828 849 840 6.375%, due 2025 295 295 295 5.375%, due 2025 297 297 297 Senior Debentures: 7.80%, due 2018 22 Capital Leases 48 54 54 Other 16 17 56 Total long-term debt 5,508 5,132 5,426 Less amounts due within one year 21 11 48 Long-term debt $ 5,487 $ 5,121 $ 5,378 On June 27, 2018, certain of the Company’s subsidiaries entered into a new Senior Secured Credit Facility (the “Agreement”), which amended and restated the previous credit agreement (the “Previous Agreement”). The proceeds from the Agreement were used to repay all outstanding amounts under the Previous Agreement. The Company recorded $11 million of additional interest charges for the write-off of unamortized fees in the second quarter of 2018. The Agreement provides for up to $1.910 billion of borrowings pursuant to term loans and revolving credit facilities. The term loans mature, and the revolving credit facilities terminate, in June 2023. At September 30, 2018, the Agreement includes a $300 million revolving credit facility, a $700 million multicurrency revolving credit facility, and a $910 million term loan A facility ($908 million net of debt issuance costs). At September 30, 2018, the Company had unused credit of $653 million available under the Agreement. The weighted average interest rate on borrowings outstanding under the Agreement at September 30, 2018 was 3.40%. The Agreement contains various covenants that restrict, among other things and subject to certain exceptions, the ability of the Company to incur certain indebtedness and liens, make certain investments, become liable under contingent obligations in certain defined instances only, make restricted payments, make certain asset sales within guidelines and limits, engage in certain affiliate transactions, participate in sale and leaseback financing arrangements, alter its fundamental business, and amend certain subordinated debt obligations. The Agreement also contains one financial maintenance covenant, a Total Leverage Ratio (the “Leverage Ratio”), that requires the Company not to exceed a ratio of 4.5x calculated by dividing consolidated total debt, less cash and cash equivalents, by Consolidated EBITDA, as defined in the Agreement. The maximum Leverage Ratio is subject to an increase of 0.5x for (i) any fiscal quarter during which certain qualifying acquisitions (as specified in the Agreement) are consummated and (ii) the following three fiscal quarters. The Leverage Ratio could restrict the ability of the Company to undertake additional financing or acquisitions to the extent that such financing or acquisitions would cause the Leverage Ratio to exceed the specified maximum. Failure to comply with these covenants and other customary restrictions could result in an event of default under the Agreement. In such an event, the Company could not request borrowings under the revolving facilities, and all amounts outstanding under the Agreement, together with accrued interest, could then be declared immediately due and payable. Upon the occurrence and for the duration of a payment event of default, an additional default interest rate equal to 2.0% per annum will apply to all overdue obligations under the Agreement. If an event of default occurs under the Agreement and the lenders cause all of the outstanding debt obligations under the Agreement to become due and payable, this would result in a default under a number of other outstanding debt securities and could lead to an acceleration of obligations related to these debt securities. As of September 30, 2018, the Company was in compliance with all covenants and restrictions in the Agreement. In addition, the Company believes that it will remain in compliance and that its ability to borrow funds under the Agreement will not be adversely affected by the covenants and restrictions. The Leverage Ratio also determines pricing under the Agreement. The interest rate on borrowings under the Agreement is, at the Company’s option, the Base Rate or the Eurocurrency Rate, as defined in the Agreement, plus an applicable margin. The applicable margin is linked to the Leverage Ratio. The margins range from 1.00% to 1.50% for Eurocurrency Loans and from 0.00% to 0.50% for Base Rate Loans. In addition, a commitment fee is payable on the unused revolving credit facility commitments ranging from 0.20% to 0.30% per annum linked to the Leverage Ratio. Obligations under the Agreement are secured by substantially all of the assets, excluding real estate and certain other excluded assets, of certain of the Company’s domestic subsidiaries and certain foreign subsidiaries. Such obligations are also secured by a pledge of intercompany debt and equity investments in certain of the Company’s domestic subsidiaries and, in the case of foreign obligations, of stock of certain foreign subsidiaries. All obligations under the Agreement are guaranteed by certain domestic subsidiaries of the Company, and certain foreign obligations under the Agreement are guaranteed by certain foreign subsidiaries of the Company. In March 2017, the Company expanded its borrowings under the Senior Notes due 2024 by issuing €225 million of additional notes that bear interest at 3.125% and are due November 15, 2024. The notes were issued via a private placement and are guaranteed by certain of the Company‘s domestic subsidiaries. The net proceeds, after deducting debt issuance costs, totaled approximately $237 million and were used to repay a portion of the Company’s revolving credit facility. During March 2017, the Company purchased in a tender offer approximately $228 million aggregate principal amount of its 7.80% Senior Debentures due in 2018. In November 2017, the remaining $22 million of the 7.80% Senior Debentures were repurchased by the Company, the indenture relating thereto was discharged, and all collateral and guarantees thereunder were released. In 2017, the Company recorded $18 million of additional interest charges for note repurchase premiums and the write-off of unamortized finance fees related to these actions. During December 2017, the Company issued senior notes with a face value of $310 million that bear interest at 4.00% and are due March 15, 2023. The notes were issued via a private placement and are guaranteed by certain of the Company‘s domestic subsidiaries. The net proceeds, after deducting debt issuance costs, totaled approximately $305 million and were used to repay a portion of the term loan A facility under the Amended Agreement. In order to maintain a capital structure containing appropriate amounts of fixed and floating-rate debt, the Company has entered into a series of interest rate swap agreements. These interest rate swap agreements were accounted for as either fair value hedges or cash flow hedges (see Note 4). The Company assesses its capital raising and refinancing needs on an ongoing basis and may enter into additional credit facilities and seek to issue equity and/or debt securities in the domestic and international capital markets if market conditions are favorable. Also, depending on market conditions, the Company may elect to repurchase portions of its debt securities in the open market. In the third quarter of 2018, the Company terminated a €185 million European accounts receivable securitization program. The carrying amounts reported for certain long-term debt obligations subject to frequently redetermined interest rates, approximate fair value. Fair values for the Company’s significant fixed rate debt obligations are based on published market quotations, and are classified as Level 1 in the fair value hierarchy. Fair values at September 30, 2018 of the Company’s significant fixed rate debt obligations are as follows: Principal Indicated Amount Market Price Fair Value Senior Notes: 6.75%, due 2020 (€500 million) $ 582 $ 113.10 $ 658 4.875%, due 2021 (€330 million) 384 111.05 426 5.00%, due 2022 500 100.93 505 5.875%, due 2023 700 103.08 722 4.00%, due 2023 310 95.57 296 3.125%, due 2024 (€725 million) 844 103.40 873 6.375%, due 2025 300 103.88 312 5.375%, due 2025 300 98.90 297

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2018
Contingencies
Contingencies	9 . Contingencies Asbestos The Company is a defendant in numerous lawsuits alleging bodily injury and death as a result of exposure to asbestos. From 1948 to 1958, one of the Company's former business units commercially produced and sold approximately $40 million of a high-temperature, calcium-silicate based pipe and block insulation material containing asbestos. The Company sold its insulation business unit at the end of April 1958. The typical asbestos personal injury lawsuit alleges various theories of liability, including negligence, gross negligence and strict liability and seeks compensatory and, in some cases, punitive damages in various amounts (herein referred to as "asbestos claims"). As of September 30, 2018, the Company has determined that it is a named defendant in asbestos lawsuits and claims involving approximately 1,065 plaintiffs and claimants. Based on an analysis of the lawsuits pending as of December 31, 2017, approximately 89% of plaintiffs either do not specify the monetary damages sought, or in the case of court filings, claim an amount sufficient to invoke the jurisdictional minimum of the trial court. Approximately 8% of plaintiffs specifically plead damages above the jurisdictional minimum up to, and including, $15 million or less, and 3% of plaintiffs specifically plead damages greater than $15 million but less than or equal to $100 million. As indicated by the foregoing summary, current pleading practice permits considerable variation in the assertion of monetary damages. The Company’s experience resolving hundreds of thousands of asbestos claims and lawsuits over an extended period demonstrates that the monetary relief alleged in a complaint bears little relevance to a claim’s merits or disposition value. Rather, the amount potentially recoverable is determined by such factors as the type and severity of the plaintiff’s asbestos disease, the plaintiff’s medical history and exposure to other disease-causing agents, the product identification evidence against the Company and other co-defendants, the defenses available to the Company and other co-defendants, the specific jurisdiction in which the claim is made, and the plaintiff’s firm representing the claimant. In addition to the pending claims set forth above, the Company has claims-handling agreements in place with many plaintiffs’ counsel throughout the country. These agreements require evaluation and negotiation regarding whether particular claimants qualify under the criteria established by such agreements. The criteria for such claims include verification of a compensable illness and a reasonable probability of exposure to a product manufactured by the Company's former business unit during its manufacturing period ending in 1958. The Company has also been a defendant in other asbestos-related lawsuits or claims involving maritime workers, medical monitoring claimants, co-defendants and property damage claimants. Based upon its past experience, the Company believes that these categories of lawsuits and claims will not involve any material liability and they are not included in the above description of pending matters or in the following description of disposed matters. Since receiving its first asbestos claim, the Company as of September 30, 2018, has disposed of asbestos claims of approximately 399,800 plaintiffs and claimants at an average indemnity payment per claim of approximately $9,700. The Company’s asbestos indemnity payments have varied on a per claim basis, and are expected to continue to vary considerably over time. Asbestos-related cash payments for 2017, 2016 and 2015 were $110 million, $125 million, and $138 million, respectively. The Company’s cash payments per claim disposed (inclusive of legal costs) were approximately $83,000, $71,000, and $95,000 for the years ended December 31, 2017, 2016 and 2015, respectively. As discussed above, the Company’s objective is to achieve, where possible, resolution of asbestos claims pursuant to claims-handling agreements. Failure of claimants to meet certain medical and product exposure criteria in the Company’s administrative claims handling agreements has generally reduced the number of claims that would otherwise have been received by the Company in the tort system. In addition, certain court orders and legislative acts have reduced or eliminated the number of claims that the Company otherwise would have received by the Company in the tort system. These developments generally have had the effect of increasing the Company’s per-claim average indemnity payment over time. Beginning with the initial liability of $975 million established in 1993, the Company has accrued a total of approximately $4.9 billion through September 30, 2018, before insurance recoveries, for its asbestos-related liability. The Company’s estimates of its liability have been significantly affected by, among other factors, the volatility of asbestos-related litigation in the United States, the significant number of co-defendants that have filed for bankruptcy, the inherent uncertainty of future disease incidence and claiming patterns against the Company, the significant expansion of the defendants that are now sued in this litigation, and the continuing changes in the extent to which these defendants participate in the resolution of cases in which the Company is also a defendant. The Company continues to monitor trends that may affect its ultimate liability and analyze the developments and variables likely to affect the resolution of pending and future asbestos claims against the Company. The material components of the Company’s total accrued liability are determined by the Company in connection with its annual comprehensive legal review and consist of the following estimates, to the extent it is probable that such liabilities have been incurred and can be reasonably estimated: (i) the liability for asbestos claims already asserted against the Company; (ii) the liability for asbestos claims not yet asserted against the Company; and (iii) the legal defense costs estimated to be incurred in connection with the claims already asserted and those claims the Company believes will be asserted. As noted above, the Company conducts a comprehensive legal review of its asbestos-related liabilities and costs annually in connection with finalizing and reporting its annual results of operations, unless significant changes in trends or new developments warrant an earlier review. As part of its annual comprehensive legal review, the Company provides historical claims filing data to a third party with expertise in determining the impact of disease incidence and mortality on future filing trends to develop information to assist the Company in estimating the total number of future claims to be filed. The Company uses this estimate of total future claims, along with an estimation of disposition costs and related legal costs as inputs to develop its best estimate of its total probable liability. If the results of the annual comprehensive legal review indicate that the existing amount of the accrued liability is lower (higher) than its reasonably estimable asbestos-related costs, then the Company will record an appropriate charge (credit) to the Company’s results of operations to increase (decrease) the accrued liability. The significant assumptions underlying the material components of the Company’s accrual are: a) settlements will continue to be limited almost exclusively to claimants who were exposed to the Company’s asbestos‑containing insulation prior to its exit from that business in 1958; b) claims will continue to be resolved primarily under the Company’s administrative claims agreements or on terms comparable to those set forth in those agreements; c) the incidence of serious asbestos‑related disease cases and claiming patterns against the Company for such cases do not change materially; d) the Company is substantially able to defend itself successfully at trial and on appeal; e) the number and timing of additional co‑defendant bankruptcies do not change significantly the assets available to participate in the resolution of cases in which the Company is a defendant; and f) co-defendants with substantial resources and assets continue to participate significantly in the resolution of future asbestos lawsuits and claims. For the years ended December 31, 2017 and 2016, the Company concluded that accruals in the amounts of $582 million and $692 million, respectively, were required. These amounts have not been discounted for the time value of money. The Company’s comprehensive legal reviews resulted in charges of $0 million, $0 million and $16 million for the years ended December 31, 2017, 2016 and 2015, respectively. The Company believes it is reasonably possible that it will incur a loss for its asbestos-related liabilities in excess of the amount currently recognized, which was $582 million as of December 31, 2017. The Company estimated that reasonably possible losses could result in asbestos-related liabilities as high as $725 million. This estimate of additional reasonably possible loss reflects a qualitative legal judgment regarding the nature of contingencies that could impact future claims and legal costs, which include, but are not limited to, successful attempts by plaintiffs to challenge existing legal barriers to liability, enact plaintiff-oriented liability or damage-related legislation, establish new theories of liability, revive long-dormant inventories of non-mesothelioma cases, or leverage changing jurisdictional dynamics and a changing litigation environment to increase the volume of cases or claims presented or per-claim values. However, it is also possible that the ultimate amount of asbestos-related liabilities could be above this estimate. The Company expects a significant majority of the total number of claims to be received in the next ten years. This timeframe appropriately reflects the mortality of current and expected claimants in light of the Company’s sale of its insulation business unit in 1958. As the Company’s potential claimants continues to age, this may introduce increased year-over-year variability into the annual quantity of claims presented to and disposed by the Company. This increased variability, jurisdictional dynamics, a changing litigation environment, the size of the remaining pool of claimants, and the expected increase in mortality over the next ten years may present the Company with the opportunity to accelerate disposition of discrete parts of its claimant pool. These influences may create increased variability in the annual cash payments year-over-year. As noted above, the Company’s asbestos-related liability is based on a projection of new claims that will eventually be filed against the Company and the estimated average disposition cost of these claims and related legal costs. Changes in these projections, and estimates, as well as changes in the significant assumptions noted above, have the potential to significantly impact the estimation of the Company’s asbestos-related liability. Other Matters On July 5, 2016, the Company learned that the Enforcement Division of the Securities and Exchange Commission (“SEC”) was conducting an investigation into certain accounting and control matters pertaining to the Company’s determination of its asbestos-related liabilities. On May 13, 2016, the Company restated its consolidated financial statements for the years ended December 31, 2015, 2014 and 2013 in order to correct an error related to the Company’s method for estimating its future asbestos-related liabilities. On May 11, 2018, the SEC informed the Company that it concluded its investigation, and, based on information it had as of that date, it did not intend to recommend an enforcement action against the Company. Other litigation is pending against the Company, in many cases involving ordinary and routine claims incidental to the business of the Company and in others presenting allegations that are non-routine and involve compensatory, punitive or treble damage claims as well as other types of relief. The Company records a liability for such matters when it is both probable that the liability has been incurred and the amount of the liability can be reasonably estimated. Recorded amounts are reviewed and adjusted to reflect changes in the factors upon which the estimates are based, including additional information, negotiations, settlements and other events.

Share Owners' Equity

Share Owners' Equity	9 Months Ended
	Sep. 30, 2018
Share Owners' Equity
Share Owners' Equity	10. Share Owners’ Equity The activity in share owners’ equity for the three months ended September 30, 2018 and 2017 is as follows: Share Owners’ Equity of the Company Accumulated Capital in Other Non- Total Share Common Excess of Treasury Retained Comprehensive controlling Owners' Stock Par Value Stock Earnings Loss Interests Equity Balance on July 1, 2018 $ 2 $ 3,115 $ (642) $ 232 $ (1,929) $ 120 $ 898 Issuance of common stock (0.01 million shares) — Reissuance of common stock (0.1 million shares) 3 3 Treasury shares purchased (0.7 million shares) (12) (12) Stock compensation (0.05 million shares) 5 5 Net earnings 120 7 127 Other comprehensive income (loss) 54 (8) 46 Balance on September 30, 2018 $ 2 $ 3,120 $ (651) $ 352 $ (1,875) $ 119 $ 1,067 Share Owners’ Equity of the Company Accumulated Capital in Other Non- Total Share Common Excess of Treasury Retained Comprehensive controlling Owners' Stock Par Value Stock Earnings Loss Interests Equity Balance on July 1, 2017 $ 2 $ 3,088 $ (555) $ 92 $ (1,957) $ 109 $ 779 Issuance of common stock (0.03 million shares) — Reissuance of common stock (0.1 million shares) 2 2 Stock compensation (0.1 million shares) 5 5 Net earnings 126 7 133 Other comprehensive income 19 1 20 Balance on September 30, 2017 $ 2 $ 3,093 $ (553) $ 218 $ (1,938) $ 117 $ 939 The activity in share owners’ equity for the nine months ended September 30, 2018 and 2017 is as follows: Share Owners’ Equity of the Company Accumulated Capital in Other Non- Total Share Common Excess of Treasury Retained Comprehensive controlling Owners' Stock Par Value Stock Earnings Loss Interests Equity Balance on January 1, 2018 $ 2 $ 3,099 $ (551) 85 $ (1,827) $ 119 $ 927 Issuance of common stock (0.03 million shares) — Reissuance of common stock (0.3 million shares) 7 7 Treasury shares purchased (5.4 million shares) (107) (107) Stock compensation (0.7 million shares) 21 21 Net earnings 267 18 285 Other comprehensive loss (48) (18) (66) Balance on September 30, 2018 $ 2 $ 3,120 $ (651) $ 352 $ (1,875) $ 119 $ 1,067 Share Owners’ Equity of the Company Accumulated Capital in Other Non- Total Share Common Excess of Treasury Retained Comprehensive controlling Owners' Stock Par Value Stock Earnings Loss Interests Equity Balance on January 1, 2017 $ 2 $ 3,080 $ (560) (96) $ (2,172) $ 109 $ 363 Issuance of common stock (0.05 million shares) — Reissuance of common stock (0.3 million shares) 7 7 Stock compensation (0.3 million shares) 13 13 Net earnings 314 15 329 Other comprehensive income (loss) 234 (7) 227 Balance on September 30, 2017 $ 2 $ 3,093 $ (553) $ 218 $ (1,938) $ 117 $ 939 During the three and nine months ended September 30, 2018, the Company purchased 682,028 and 5,358,150 shares, respectively, of its common stock for approximately $12 million and $107 million, respectively, pursuant to the authorization by its Board of Directors in January 2018 to purchase up to $400 million of the Company’s common stock. The Company has 250,000,000 shares of common stock authorized with a par value of $.01 per share. Shares outstanding are as follows: Shares Outstanding (in thousands) September 30, December 31, September 30, 2018 2017 2017 Shares of common stock issued (including treasury shares) 186,440 185,728 185,722 Treasury shares 27,741 22,649 22,731

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2018
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss	11. Accumulated Other Comprehensive Loss The activity in accumulated other comprehensive loss for the three months ended September 30, 2018 and 2017 is as follows: Total Accumulated Net Effect of Change in Certain Other Exchange Rate Derivative Employee Comprehensive Fluctuations Instruments Benefit Plans Loss Balance on July 1, 2018 $ (856) $ (18) $ (1,055) $ (1,929) Change before reclassifications 40 (11) (1) 28 Amounts reclassified from accumulated other comprehensive income 9 (a) 16 (b) 25 Translation effect 1 1 Tax effect — Other comprehensive income (loss) attributable to the Company 40 (1) 15 54 Balance on September 30, 2018 $ (816) $ (19) $ (1,040) $ (1,875) Total Accumulated Net Effect of Change in Certain Other Exchange Rate Derivative Employee Comprehensive Fluctuations Instruments Benefit Plans Loss Balance on July 1, 2017 $ (578) $ (14) $ (1,365) $ (1,957) Change before reclassifications 9 (2) 7 Amounts reclassified from accumulated other comprehensive income (a) 19 (b) 19 Translation effect (7) (7) Tax effect — Other comprehensive income attributable to the Company 9 — 10 19 Balance on September 30, 2017 $ (569) $ (14) $ (1,355) $ (1,938) (a) Amount is included in Cost of goods sold and Other expense, net on the Condensed Consolidated Results of Operations (see Note 4 for additional information). (b) Amount is included in the computation of net periodic pension cost (see Note 6 for additional information) and net postretirement benefit cost. The activity in accumulated other comprehensive loss for the nine months ended September 30, 2018 and 2017 is as follows: Total Accumulated Net Effect of Change in Certain Other Exchange Rate Derivative Employee Comprehensive Fluctuations Instruments Benefit Plans Loss Balance on January 1, 2018 $ (724) $ (12) $ (1,091) $ (1,827) Change before reclassifications (92) (7) (8) (107) Amounts reclassified from accumulated other comprehensive income (a) 49 (b) 49 Translation effect 10 10 Tax effect — Other comprehensive income (loss) attributable to the Company (92) (7) 51 (48) Balance on September 30, 2018 $ (816) $ (19) $ (1,040) $ (1,875) Total Accumulated Net Effect of Change in Certain Other Exchange Rate Derivative Employee Comprehensive Fluctuations Instruments Benefit Plans Loss Balance on January 1, 2017 $ (788) $ (4) $ (1,380) $ (2,172) Change before reclassifications 219 (12) 207 Amounts reclassified from accumulated other comprehensive income (10) (a) 58 (b) 48 Translation effect (21) (21) Tax effect — Other comprehensive income (loss) attributable to the Company 219 (10) 25 234 Balance on September 30, 2017 $ (569) $ (14) $ (1,355) $ (1,938) (a) Amount is included in Cost of goods sold and Other expense, net on the Condensed Consolidated Results of Operations (see Note 4 for additional information). (b) Amount is included in the computation of net periodic pension cost (see Note 6 for additional information) and net postretirement benefit cost.

Other Expense (Income), net

Other Expense (Income), net	9 Months Ended
	Sep. 30, 2018
Other Expense (Income), net
Other Expense (Income), net	12. Other Expense (Income), net Other expense (income), net for the three and nine months ended September 30, 2018 and 2017 included the following: Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Restructuring, asset impairment and other charges $ — $ — $ 68 $ 49 Foreign currency exchange loss 4 3 6 3 Intangible amortization expense 10 11 30 31 Royalty income (3) (4) (9) (11) Non-income tax gain (13) (13) Other income (including gains on asset sales), net (18) (5) (33) (11) $ (20) $ 5 $ 49 $ 61

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2018
Earnings Per Share
Earnings Per Share	13. Earnings Per Share The following tables set forth the computation of basic and diluted earnings per share: Three months ended September 30, 2018 2017 Numerator: Net earnings attributable to the Company $ 120 $ 126 Denominator (in thousands): Denominator for basic earnings per share-weighted average shares outstanding 159,032 162,866 Effect of dilutive securities: Stock options and other 2,003 2,127 Denominator for diluted earnings per share-adjusted weighted average shares outstanding 161,035 164,993 Basic earnings per share: Earnings from continuing operations $ 0.75 $ 0.78 Loss from discontinued operations — (0.01) Net earnings $ 0.75 $ 0.77 Diluted earnings per share: Earnings from continuing operations $ 0.75 $ 0.77 Loss from discontinued operations — (0.01) Net earnings $ 0.75 $ 0.76 Options to purchase 1,794,634 and 1,168,671 weighted average shares of common stock which were outstanding during the three months ended September 30, 2018 and 2017, respectively, were not included in the computation of diluted earnings per share because the options exercise price was greater than the average market price of the common shares. Nine months ended September 30, 2018 2017 Numerator: Net earnings attributable to the Company $ 267 $ 314 Denominator (in thousands): Denominator for basic earnings per share-weighted average shares outstanding 160,936 162,658 Effect of dilutive securities: Stock options and other 2,041 1,782 Denominator for diluted earnings per share-adjusted weighted average shares outstanding 162,977 164,440 Basic earnings per share: Earnings from continuing operations $ 1.67 $ 1.94 Loss from discontinued operations (0.01) (0.01) Net earnings $ 1.66 $ 1.93 Diluted earnings per share: Earnings from continuing operations $ 1.65 $ 1.92 Loss from discontinued operations (0.01) (0.01) Net earnings $ 1.64 $ 1.91 Options to purchase 1,854,809 and 1,664,845 weighted average shares of common stock which were outstanding during the nine months ended September 30, 2018 and 2017, respectively, were not included in the computation of diluted earnings per share because the options exercise price was greater than the average market price of the common shares.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	9 Months Ended
	Sep. 30, 2018
Supplemental Cash Flow Information
Supplemental Cash Flow Information	14. Supplemental Cash Flow Information Income taxes paid in cash were as follows: Nine months ended September 30, 2018 2017 U.S. $ 9 $ 7 Non-U.S. 87 113 Total income taxes paid in cash 96 120 Interest paid in cash for the nine months ended September 30, 2018 and 2017 was $188 million and $209 million, respectively. Cash interest for the nine months ended September 30, 2017 included $16 million for note repurchase premiums related to debt that was repaid prior to its maturity. The Company uses various factoring programs to sell certain receivables to financial institutions as part of managing its cash flows. At September 30, 2018 and September 30, 2017, the amount of receivables sold by the Company was $289 million and $145 million, respectively. Any continuing involvement with the sold receivables is immaterial.

Discontinued Operations

Discontinued Operations	9 Months Ended
	Sep. 30, 2018
Discontinued Operations
Discontinued Operations	15. Discontinued Operations On April 4, 2016, the annulment committee formed by the World Bank’s International Centre for Settlement of Investment Disputes (“ICSID”) ruled that OI European Group B.V. (“OIEG”), a subsidiary of the Company, is free to pursue the enforcement of a prior arbitration award (the “Award”) against Venezuela. As of September 30, 2018, that Award amounts to more than $500 million, including reimbursement of expenses and accrued interest. Venezuela’s application to annul the Award was heard by an ad hoc committee of the ICSID in September 2017, but no decision has been rendered yet. On July 31, 2017, OIEG sold its right, title and interest in amounts due under the Award to an Ireland-domiciled investment fund. Under the terms of the sale, OIEG received a payment, in cash, at closing equal to $115 million (the “Cash Payment”). OIEG may also receive additional payments in the future (“Deferred Amounts”) calculated based on the total compensation that is received from Venezuela as a result of collection efforts or as settlement of the Award with Venezuela. In the event that the Award is partially or completely annulled by the ICSID ad hoc annulment committee, OIEG may be required to repay to the purchaser up to the entire amount of the Cash Payment based on a formula tied to the amount of the Award (if any) that is annulled. In addition, OIEG’s right to receive any Deferred Amounts is subject to the limitations described below. OIEG’s interest in any amounts received in the future from Venezuela in respect of the Award is limited to a percentage of such recovery after taking into account reimbursement of the Cash Payment to the purchaser and reimbursement of legal fees and expenses incurred by the Company and the purchaser. OIEG’s percentage of such recovery will also be reduced over time. Because the Award has yet to be satisfied, the annulment proceeding is pending, and the ability to successfully enforce the Award in countries that are party to the ICSID Convention is subject to significant challenges, the Company is unable to reasonably predict the amount of recoveries from the Award, if any, to which the Company may be entitled in the future. Any future amounts that the Company may receive from the Award are highly speculative and the timing of any such future payments, if any, is highly uncertain. As such, there can be no assurance that the Company will receive any future payments under the Award beyond the Cash Payment. Except as noted above in connection with the annulment proceeding that is pending before the ICSID ad hoc committee, the Cash Payment is not subject to any forfeiture or future adjustment. A separate arbitration involving other subsidiaries of the Company was initiated in 2012 to obtain compensation primarily for third-party minority shareholders’ lost interests in the two expropriated plants. However, on November 13, 2017, ICSID issued an award that dismissed this arbitration on jurisdiction grounds. In March 2018, the two subsidiaries of the Company submitted to ICSID an application to annul the November 13, 2017 award; they have since submitted a pleading seeking annulment. As of September 30, 2018, the Company deferred the gain contingency on the sale of its rights in amounts due under the Award pending the ad hoc committee of the ICSID rendering its decision regarding Venezuela’s application to annul the Award. The loss from discontinued operations was less than $1 million and $1 million for the three and nine months ended September 30, 2018, respectively, and $2 million and $2 million for the three and nine months ended September 30, 2017, respectively, related to ongoing costs of the Venezuelan expropriation.

New Accounting Pronouncement

New Accounting Pronouncement	9 Months Ended
	Sep. 30, 2018
New Accounting Pronouncement
New Accounting Pronouncement	16. New Accounting Pronouncement Revenue from Contracts with Customers - In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers," which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. On January 1, 2018, the Company adopted this accounting standard. See Note 2, Revenue, for additional information. Leases - In February 2016, the FASB issued ASU No. 2016-02, “Leases” Under this guidance, lessees will be required to recognize on the balance sheet a lease liability and a right-of-use asset for all leases, with the exception of short-term leases. The lease liability represents the lessee's obligation to make lease payments arising from a lease, and will be measured as the present value of the lease payments. The right-of-use asset represents the lessee’s right to use a specified asset for the lease term, and will be measured at the lease liability amount, adjusted for lease prepayment, lease incentives received and the lessee’s initial direct costs. The standard also requires a lessee to recognize a single lease cost allocated over the lease term, generally on a straight-line basis. The new guidance is effective for the Company on January 1, 2019. ASU No. 2016-02 and is required to be applied using the modified retrospective approach for all leases existing as of the effective date. The Company expects to adopt this guidance using the additional, optional transition method, the package of transitional practical expedients relating to the identification, classification and initial direct costs of leases commencing before the effective date of ASU No. 2016-02, and the transitional practical expedient for the treatment of existing land easements; however, the Company does not expect to elect the hindsight transitional practical expedient. The Company anticipates the new guidance will significantly impact its consolidated financial statements as the Company has a significant number of leases. As of December 31, 2017, the Company had minimum lease commitments under non-cancellable operating leases totaling $258 million. The Company formed an implementation team, commenced identification of its lease population and has begun the implementation of new software to manage its leases in accordance with this new accounting standard. Credit Losses - In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This guidance requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. This guidance also requires enhanced disclosures regarding significant estimates and judgments used in estimating credit losses. The new guidance is effective for the Company on January 1, 2020. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. Statement of Cash Flows - In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments” which was intended to reduce diversity in practice on how certain transactions are classified in the statement of cash flows. Application of the standard is required for annual periods beginning after December 15, 2017. The Company adopted this standard in the first quarter of 2018. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. Compensation - Retirement Benefits - In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” which requires the service cost component to be presented with other employee compensation costs in operating income within the income statement while the other components will be reported separately outside of operations. Application of the standard is required for annual periods beginning after December 15, 2017. The Company adopted this standard in the first quarter of 2018. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements, except for in the Consolidated Results of Operations for the prior periods in which there were pension settlement charges. These prior period pension settlement charges were reclassed from the Cost of goods sold and Selling and administrative expense lines into the Other income (expense), net line. Derivatives and Hedging - In August 2017, the FASB issued ASU No. 2017-12, “Targeted Improvements to Accounting for Hedging Activities” which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. Application of the standard is required for annual periods beginning after December 15, 2018. The Company adopted this standard in the first quarter of 2018. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. Income Taxes - In January 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which gives entities the option to reclassify to retained earnings the tax effects resulting from the Act related to items in AOCI that the FASB refers to as having been stranded in AOCI. The new guidance may be applied retrospectively to each period in which the effect of the Act is recognized in the period of adoption. The Company must adopt this guidance for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted for periods for which financial statements have not yet been issued or made available for issuance, including the period the Act was enacted. The guidance, when adopted, will require new disclosures regarding a company’s accounting policy for releasing the tax effects in AOCI and permit a company the option to reclassify to retained earnings the tax effects resulting from the Act that are stranded in AOCI. The Company is currently evaluating how to apply the new guidance and has not determined whether it will elect to reclassify stranded amounts, if any. The adoption of ASU 2018-02 is not expected to have a material effect on the Company’s consolidated financial statements. Disclosure Requirements for Fair Value Measurement - In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” which modifies the fair value disclosure requirements. Application of the standard is required for annual periods beginning after December 15, 2019. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. Disclosure Requirements for Defined Benefit Plans - In August 2018, the FASB issued ASU No. 2018-14, “Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans” which modifies the defined benefit plan disclosure requirements. Application of the standard is required for annual periods beginning after December 15, 2020. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements.

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2018
Segment Information
Net sales for the Company's reportable segments	Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Net sales: Americas $ 939 $ 963 $ 2,777 $ 2,774 Europe 613 624 1,930 1,813 Asia Pacific 165 188 491 516 Reportable segment totals 1,717 1,775 5,198 5,103 Other 17 16 44 54 Net sales $ 1,734 $ 1,791 $ 5,242 $ 5,157
Segment operating profit (loss) for the Company's reportable segments	Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Segment operating profit: Americas $ 158 $ 159 $ 458 $ 459 Europe 87 81 260 220 Asia Pacific 10 20 16 51 Reportable segment totals 255 260 734 730 Items excluded from segment operating profit: Retained corporate costs and other (24) (25) (81) (81) Restructuring, asset impairment and other (73) (49) Interest expense, net (63) (63) (199) (204) Earnings from continuing operations before income taxes $ 168 $ 172 $ 381 $ 396
Total assets for the Company's reportable segments	September 30, December 31, September 30, 2018 2017 2017 Total assets: Americas $ 5,455 $ 5,411 $ 5,598 Europe 3,220 3,133 3,140 Asia Pacific 999 1,001 1,046 Reportable segment totals 9,674 9,545 9,784 Other 266 211 215 Consolidated totals $ 9,940 $ 9,756 $ 9,999

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2018
Revenue
Schedule of disaggregation of revenue by customer end use	The following table for three months ended September 30, 2018 disaggregates the Company’s revenue by customer end use: Three months ended September 30, 2018 Americas Europe Asia Pacific Total Alcoholic beverages (beer, wine, spirits) $ 582 $ 419 $ 121 $ 1,122 Food and other 209 127 24 360 Non-alcoholic beverages 148 67 20 235 Reportable segment totals $ 939 $ 613 $ 165 $ 1,717 Other 17 Net sales $ 1,734 The following table for nine months ended September 30, 2018 disaggregates the Company’s revenue by customer end use: Nine months ended September 30, 2018 Americas Europe Asia Pacific Total Alcoholic beverages (beer, wine, spirits) $ 1,743 $ 1,383 $ 361 $ 3,487 Food and other 594 351 72 1,017 Non-alcoholic beverages 440 196 58 694 Reportable segment totals $ 2,777 $ 1,930 $ 491 $ 5,198 Other 44 Net sales $ 5,242

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2018
Inventories
Major classes of inventory	September 30, December 31, September 30, 2018 2017 2017 Finished goods $ 808 $ 873 $ 875 Raw materials 119 122 129 Operating supplies 46 41 42 $ 973 $ 1,036 $ 1,046

Derivative Instruments (Tables)

Derivative Instruments (Tables)	9 Months Ended
	Sep. 30, 2018
Derivatives and Hedges
Effect of the foreign exchange contracts not designated as hedging instruments on the results of operations	The effect of the foreign exchange derivative contracts on the results of operations for the three months ended September 30, 2018 and September 30, 2017 is as follows: Amount of Gain (Loss) Location of Gain (Loss) Recognized in Income on Recognized in Income on Foreign Exchange Contracts Foreign Exchange Contracts 2018 2017 Other expense, net $ — $ (2) The effect of the foreign exchange derivative contracts on the results of operations for the nine months ended September 30, 2018 and September 30, 2017 is as follows: Amount of Gain (Loss) Location of Gain (Loss) Recognized in Income on Recognized in Income on Foreign Exchange Contracts Foreign Exchange Contracts 2018 2017 Other expense, net $ (1) $ 4
Schedule of selected information relating to fair value swaps	Amount Hedged Receive Rate Average Spread Senior Notes due 2024 € 725 3.125 % 2.6 %
Balance Sheet Classification of derivative instruments	Fair Value Current Balance September 30, December 31, September 30, Sheet Location 2018 2017 2017 Asset Derivatives: Derivatives designated as hedging instruments: Commodity futures contracts b $ 8 $ 3 $ 1 Interest rate swaps designated as fair value hedges a 4 6 2 Cash flow hedges of foreign exchange risk a 11 4 Net investment hedges a 5 Derivatives not designated as hedging instruments: Foreign exchange derivative contracts a 2 4 2 Total asset derivatives $ 30 $ 17 $ 5 Liability Derivatives: Derivatives designated as hedging instruments: Commodity futures contracts c $ — $ — $ 1 Interest rate swaps designated as fair value hedges d 11 13 5 Cash flow hedges of foreign exchange risk d 12 10 Net investment hedges d 5 Derivatives not designated as hedging instruments: Foreign exchange derivative contracts c 1 1 3 Total liability derivatives $ 29 $ 24 $ 9
Commodity forwards contracts
Derivatives and Hedges
Effect of derivative on the results of operations	The effect of the commodity forward contracts on the results of operations for the three months ended September 30, 2018 and September 30, 2017 is as follows: Amount of Gain (Loss) Reclassified from Amount of Gain (Loss) Recognized in OCI on Accumulated OCI into Income Commodity Forward Contracts (reported in cost of goods sold) (Effective Portion) (Effective Portion) 2018 2017 2018 2017 $ 1 $ (1) $ — $ — The effect of the commodity forward contracts on the results of operations for the nine months ended September 30, 2018 and September 30, 2017 is as follows: Amount of Gain (Loss) Reclassified from Amount of Gain Recognized in OCI on Accumulated OCI into Income Commodity Forward Contracts (reported in cost of goods sold) (Effective Portion) (Effective Portion) 2018 2017 2018 2017 $ 6 $ 3 $ (1) $ —
Foreign exchange contracts
Derivatives and Hedges
Effect of derivative on the results of operations	The effect of the cash flow hedges of foreign exchange risk on the results of operations for the three months ended September 30, 2018 is as follows: Amount of Gain (Loss) Reclassified from Amount of Gain (Loss) Recognized in OCI on Accumulated OCI into Income Cash Hedges of Foreign Exchange Risk (reported in Other expense, net) (Effective Portion) (Effective Portion) $ 7 $ (9) The effect of the cash flow hedges of foreign exchange risk on the results of operations for the nine months ended September 30, 2018 is as follows: Amount of Gain (Loss) Reclassified from Amount of Gain (Loss) Recognized in OCI on Accumulated OCI into Income Cash Hedges of Foreign Exchange Risk (reported in Other expense, net) (Effective Portion) (Effective Portion) $ 8 $ 1

Restructuring Accruals (Tables)

Restructuring Accruals (Tables)	9 Months Ended
	Sep. 30, 2018
Restructuring Accruals
Selected information related to the restructuring accruals	Selected information related to the restructuring accruals for the three months ended September 30, 2018 and 2017 is as follows: Employee Asset Other Total Costs Impairment Exit Costs Restructuring Balance at July 1, 2018 $ 71 $ $ 16 $ 87 Net cash paid, principally severance and related benefits (8) (1) (9) Other, including foreign exchange translation (1) (2) (3) Balance at September 30, 2018 $ $ — $ $ Employee Asset Other Total Costs Impairment Exit Costs Restructuring Balance at July 1, 2017 $ 94 $ $ 17 $ 111 Net cash paid, principally severance and related benefits (11) (3) (14) Other, including foreign exchange translation 1 1 Balance at September 30, 2017 $ 84 $ — $ 14 $ 98 Selected information related to the restructuring accruals for the nine months ended September 30, 2018 and 2017 is as follows: Employee Asset Other Total Costs Impairment Exit Costs Restructuring Balance at January 1, 2018 $ 67 $ $ 18 $ 85 Charges 15 53 2 70 Write-down of assets to net realizable value (53) (53) Net cash paid, principally severance and related benefits (18) (3) (21) Other, including foreign exchange translation (2) (4) (6) Balance at September 30, 2018 $ 62 $ — $ 13 $ 75 Employee Asset Other Total Costs Impairment Exit Costs Restructuring Balance at January 1, 2017 $ 67 $ $ 18 $ 85 Charges 34 9 5 48 Write-down of assets to net realizable value (9) (9) Net cash paid, principally severance and related benefits (21) (9) (30) Other, including foreign exchange translation 4 4 Balance at September 30, 2017 $ 84 $ — $ 14 $ 98

Pension Benefit Plans (Tables)

Pension Benefit Plans (Tables)	9 Months Ended
	Sep. 30, 2018
Pension Benefit Plans
Defined Benefit Plans and Other Postretirement Benefit Plans
Components of net periodic pension cost	The components of the net periodic pension cost for the three months ended September 30, 2018 and 2017 are as follows: U.S. Non-U.S. 2018 2017 2018 2017 Service cost $ 4 $ 4 $ 4 $ 4 Interest cost 15 20 7 11 Expected asset return (25) (33) (13) (18) Amortization of Actuarial loss 13 14 3 5 Net periodic pension cost $ 7 $ 5 $ 1 $ 2 The components of the net periodic pension cost for the nine months ended September 30, 2018 and 2017 are as follows: U.S. Non-U.S. 2018 2017 2018 2017 Service cost $ 11 $ 11 $ 11 $ 12 Interest cost 45 59 23 33 Expected asset return (74) (98) (40) (54) Amortization of Actuarial loss 39 44 10 15 Net periodic pension cost $ 21 $ 16 $ 4 $ 6

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2018
Debt
Long-term Debt	September 30, December 31, September 30, 2018 2017 2017 Secured Credit Agreement: Revolving Credit Facility: Revolving Loans $ 335 $ — $ — Term Loans: Term Loan A 908 Previous Secured Credit Agreement: Revolving Credit Facility: Revolving Loans 200 Term Loans: Term Loan A 1,148 1,202 Term Loan A (€279 million) 308 Other secured debt 329 Senior Notes: 6.75%, due 2020 (€500 million) 580 594 586 4.875%, due 2021 (€330 million) 382 392 386 5.00%, due 2022 497 496 496 4.00%, due 2023 306 305 5.875%, due 2023 687 685 684 3.125%, due 2024 (€725 million) 828 849 840 6.375%, due 2025 295 295 295 5.375%, due 2025 297 297 297 Senior Debentures: 7.80%, due 2018 22 Capital Leases 48 54 54 Other 16 17 56 Total long-term debt 5,508 5,132 5,426 Less amounts due within one year 21 11 48 Long-term debt $ 5,487 $ 5,121 $ 5,378
Fair values of the Company's significant fixed rate debt obligations	Fair values at September 30, 2018 of the Company’s significant fixed rate debt obligations are as follows: Principal Indicated Amount Market Price Fair Value Senior Notes: 6.75%, due 2020 (€500 million) $ 582 $ 113.10 $ 658 4.875%, due 2021 (€330 million) 384 111.05 426 5.00%, due 2022 500 100.93 505 5.875%, due 2023 700 103.08 722 4.00%, due 2023 310 95.57 296 3.125%, due 2024 (€725 million) 844 103.40 873 6.375%, due 2025 300 103.88 312 5.375%, due 2025 300 98.90 297

Share Owners' Equity (Tables)

Share Owners' Equity (Tables)	9 Months Ended
	Sep. 30, 2018
Share Owners' Equity
Activity in share owner's equity	The activity in share owners’ equity for the three months ended September 30, 2018 and 2017 is as follows: Share Owners’ Equity of the Company Accumulated Capital in Other Non- Total Share Common Excess of Treasury Retained Comprehensive controlling Owners' Stock Par Value Stock Earnings Loss Interests Equity Balance on July 1, 2018 $ 2 $ 3,115 $ (642) $ 232 $ (1,929) $ 120 $ 898 Issuance of common stock (0.01 million shares) — Reissuance of common stock (0.1 million shares) 3 3 Treasury shares purchased (0.7 million shares) (12) (12) Stock compensation (0.05 million shares) 5 5 Net earnings 120 7 127 Other comprehensive income (loss) 54 (8) 46 Balance on September 30, 2018 $ 2 $ 3,120 $ (651) $ 352 $ (1,875) $ 119 $ 1,067 Share Owners’ Equity of the Company Accumulated Capital in Other Non- Total Share Common Excess of Treasury Retained Comprehensive controlling Owners' Stock Par Value Stock Earnings Loss Interests Equity Balance on July 1, 2017 $ 2 $ 3,088 $ (555) $ 92 $ (1,957) $ 109 $ 779 Issuance of common stock (0.03 million shares) — Reissuance of common stock (0.1 million shares) 2 2 Stock compensation (0.1 million shares) 5 5 Net earnings 126 7 133 Other comprehensive income 19 1 20 Balance on September 30, 2017 $ 2 $ 3,093 $ (553) $ 218 $ (1,938) $ 117 $ 939 The activity in share owners’ equity for the nine months ended September 30, 2018 and 2017 is as follows: Share Owners’ Equity of the Company Accumulated Capital in Other Non- Total Share Common Excess of Treasury Retained Comprehensive controlling Owners' Stock Par Value Stock Earnings Loss Interests Equity Balance on January 1, 2018 $ 2 $ 3,099 $ (551) 85 $ (1,827) $ 119 $ 927 Issuance of common stock (0.03 million shares) — Reissuance of common stock (0.3 million shares) 7 7 Treasury shares purchased (5.4 million shares) (107) (107) Stock compensation (0.7 million shares) 21 21 Net earnings 267 18 285 Other comprehensive loss (48) (18) (66) Balance on September 30, 2018 $ 2 $ 3,120 $ (651) $ 352 $ (1,875) $ 119 $ 1,067 Share Owners’ Equity of the Company Accumulated Capital in Other Non- Total Share Common Excess of Treasury Retained Comprehensive controlling Owners' Stock Par Value Stock Earnings Loss Interests Equity Balance on January 1, 2017 $ 2 $ 3,080 $ (560) (96) $ (2,172) $ 109 $ 363 Issuance of common stock (0.05 million shares) — Reissuance of common stock (0.3 million shares) 7 7 Stock compensation (0.3 million shares) 13 13 Net earnings 314 15 329 Other comprehensive income (loss) 234 (7) 227 Balance on September 30, 2017 $ 2 $ 3,093 $ (553) $ 218 $ (1,938) $ 117 $ 939
Schedule of shares outstanding	Shares Outstanding (in thousands) September 30, December 31, September 30, 2018 2017 2017 Shares of common stock issued (including treasury shares) 186,440 185,728 185,722 Treasury shares 27,741 22,649 22,731

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 30, 2018
Accumulated Other Comprehensive Loss
Component of accumulated other comprehensive loss	The activity in accumulated other comprehensive loss for the three months ended September 30, 2018 and 2017 is as follows: Total Accumulated Net Effect of Change in Certain Other Exchange Rate Derivative Employee Comprehensive Fluctuations Instruments Benefit Plans Loss Balance on July 1, 2018 $ (856) $ (18) $ (1,055) $ (1,929) Change before reclassifications 40 (11) (1) 28 Amounts reclassified from accumulated other comprehensive income 9 (a) 16 (b) 25 Translation effect 1 1 Tax effect — Other comprehensive income (loss) attributable to the Company 40 (1) 15 54 Balance on September 30, 2018 $ (816) $ (19) $ (1,040) $ (1,875) Total Accumulated Net Effect of Change in Certain Other Exchange Rate Derivative Employee Comprehensive Fluctuations Instruments Benefit Plans Loss Balance on July 1, 2017 $ (578) $ (14) $ (1,365) $ (1,957) Change before reclassifications 9 (2) 7 Amounts reclassified from accumulated other comprehensive income (a) 19 (b) 19 Translation effect (7) (7) Tax effect — Other comprehensive income attributable to the Company 9 — 10 19 Balance on September 30, 2017 $ (569) $ (14) $ (1,355) $ (1,938) (a) Amount is included in Cost of goods sold and Other expense, net on the Condensed Consolidated Results of Operations (see Note 4 for additional information). (b) Amount is included in the computation of net periodic pension cost (see Note 6 for additional information) and net postretirement benefit cost. The activity in accumulated other comprehensive loss for the nine months ended September 30, 2018 and 2017 is as follows: Total Accumulated Net Effect of Change in Certain Other Exchange Rate Derivative Employee Comprehensive Fluctuations Instruments Benefit Plans Loss Balance on January 1, 2018 $ (724) $ (12) $ (1,091) $ (1,827) Change before reclassifications (92) (7) (8) (107) Amounts reclassified from accumulated other comprehensive income (a) 49 (b) 49 Translation effect 10 10 Tax effect — Other comprehensive income (loss) attributable to the Company (92) (7) 51 (48) Balance on September 30, 2018 $ (816) $ (19) $ (1,040) $ (1,875) Total Accumulated Net Effect of Change in Certain Other Exchange Rate Derivative Employee Comprehensive Fluctuations Instruments Benefit Plans Loss Balance on January 1, 2017 $ (788) $ (4) $ (1,380) $ (2,172) Change before reclassifications 219 (12) 207 Amounts reclassified from accumulated other comprehensive income (10) (a) 58 (b) 48 Translation effect (21) (21) Tax effect — Other comprehensive income (loss) attributable to the Company 219 (10) 25 234 Balance on September 30, 2017 $ (569) $ (14) $ (1,355) $ (1,938) (a) Amount is included in Cost of goods sold and Other expense, net on the Condensed Consolidated Results of Operations (see Note 4 for additional information). Amount is included in the computation of net periodic pension cost (see Note 6 for additional information) and net postretirement benefit cost.

Other Expense (Income), net (Ta

Other Expense (Income), net (Tables)	9 Months Ended
	Sep. 30, 2018
Other Expense (Income), net
Schedule of other expense (income), net	Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Restructuring, asset impairment and other charges $ — $ — $ 68 $ 49 Foreign currency exchange loss 4 3 6 3 Intangible amortization expense 10 11 30 31 Royalty income (3) (4) (9) (11) Non-income tax gain (13) (13) Other income (including gains on asset sales), net (18) (5) (33) (11) $ (20) $ 5 $ 49 $ 61

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share
Computation of basic and diluted earnings per share	The following tables set forth the computation of basic and diluted earnings per share: Three months ended September 30, 2018 2017 Numerator: Net earnings attributable to the Company $ 120 $ 126 Denominator (in thousands): Denominator for basic earnings per share-weighted average shares outstanding 159,032 162,866 Effect of dilutive securities: Stock options and other 2,003 2,127 Denominator for diluted earnings per share-adjusted weighted average shares outstanding 161,035 164,993 Basic earnings per share: Earnings from continuing operations $ 0.75 $ 0.78 Loss from discontinued operations — (0.01) Net earnings $ 0.75 $ 0.77 Diluted earnings per share: Earnings from continuing operations $ 0.75 $ 0.77 Loss from discontinued operations — (0.01) Net earnings $ 0.75 $ 0.76 Nine months ended September 30, 2018 2017 Numerator: Net earnings attributable to the Company $ 267 $ 314 Denominator (in thousands): Denominator for basic earnings per share-weighted average shares outstanding 160,936 162,658 Effect of dilutive securities: Stock options and other 2,041 1,782 Denominator for diluted earnings per share-adjusted weighted average shares outstanding 162,977 164,440 Basic earnings per share: Earnings from continuing operations $ 1.67 $ 1.94 Loss from discontinued operations (0.01) (0.01) Net earnings $ 1.66 $ 1.93 Diluted earnings per share: Earnings from continuing operations $ 1.65 $ 1.92 Loss from discontinued operations (0.01) (0.01) Net earnings $ 1.64 $ 1.91

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	9 Months Ended
	Sep. 30, 2018
Supplemental Cash Flow Information
Supplemental cash flow information	Nine months ended September 30, 2018 2017 U.S. $ 9 $ 7 Non-U.S. 87 113 Total income taxes paid in cash 96 120

Segment Information - Reportabl

Segment Information - Reportable Segments (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)positionsegmentitem	Sep. 30, 2017USD ($)
Segment Reporting Information
Number of reportable segments | segment			3
Number of operating segments | segment			3
Number of combined segments as a result of consolidating the former North America and Latin America segments | segment			1
Number of leadership roles as a result of consolidating the former North America and Latin America segments | position			1
Number of shared service centers as a result of consolidating the former North America and Latin America segments | item			1
Net sales:
Net sales	$ 1,734	$ 1,791	$ 5,242	$ 5,157
Segment operating profit:
Segment operating profit	255	260	734	730
Items excluded from Segment Operating Profit:
Retained corporate costs and other	(24)	(25)	(81)	(81)
Restructuring, asset impairment and other			(73)	(49)
Interest expense, net
Interest expense, net	(63)	(63)	(199)	(204)
Earnings from continuing operations before income taxes
Earnings from continuing operations before income taxes	168	172	381	396
Reportable Segment Totals
Net sales:
Net sales	1,717	1,775	5,198	5,103
Americas
Net sales:
Net sales	939	963	2,777	2,774
Segment operating profit:
Segment operating profit	158	159	458	459
Europe
Net sales:
Net sales	613	624	1,930	1,813
Segment operating profit:
Segment operating profit	87	81	260	220
Asia Pacific
Net sales:
Net sales	165	188	491	516
Segment operating profit:
Segment operating profit	10	20	16	51
Other
Net sales:
Net sales	$ 17	$ 16	$ 44	$ 54

Segment Information - Total Ass

Segment Information - Total Assets (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Assets
Total assets:	$ 9,940	$ 9,756	$ 9,999
Reportable Segment Totals
Assets
Total assets:	9,674	9,545	9,784
Americas
Assets
Total assets:	5,455	5,411	5,598
Europe
Assets
Total assets:	3,220	3,133	3,140
Asia Pacific
Assets
Total assets:	999	1,001	1,046
Other
Assets
Total assets:	$ 266	$ 211	$ 215

Revenue (Details)

Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue
Net sales	$ 1,734	$ 1,791	$ 5,242	$ 5,157
Reportable Segment Totals
Disaggregation of Revenue
Net sales	1,717	1,775	5,198	5,103
Americas
Disaggregation of Revenue
Net sales	939	963	2,777	2,774
Europe
Disaggregation of Revenue
Net sales	613	624	1,930	1,813
Asia Pacific
Disaggregation of Revenue
Net sales	165	188	491	516
Other
Disaggregation of Revenue
Net sales	17	$ 16	44	$ 54
Alcoholic beverages (beer, wine, spirits)
Disaggregation of Revenue
Net sales	1,122		3,487
Alcoholic beverages (beer, wine, spirits) | Americas
Disaggregation of Revenue
Net sales	582		1,743
Alcoholic beverages (beer, wine, spirits) | Europe
Disaggregation of Revenue
Net sales	419		1,383
Alcoholic beverages (beer, wine, spirits) | Asia Pacific
Disaggregation of Revenue
Net sales	121		361
Food and other
Disaggregation of Revenue
Net sales	360		1,017
Food and other | Americas
Disaggregation of Revenue
Net sales	209		594
Food and other | Europe
Disaggregation of Revenue
Net sales	127		351
Food and other | Asia Pacific
Disaggregation of Revenue
Net sales	24		72
Non-alcoholic beverages
Disaggregation of Revenue
Net sales	235		694
Non-alcoholic beverages | Americas
Disaggregation of Revenue
Net sales	148		440
Non-alcoholic beverages | Europe
Disaggregation of Revenue
Net sales	67		196
Non-alcoholic beverages | Asia Pacific
Disaggregation of Revenue
Net sales	$ 20		$ 58

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Inventories
Finished goods	$ 808	$ 873	$ 875
Raw materials	119	122	129
Operating supplies	46	41	42
Inventories	$ 973	$ 1,036	$ 1,046

Derivative Instruments - Deriva

Derivative Instruments - Derivatives and Hedges (Details) € in Millions, $ in Millions, $ in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)MMBTU	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)MMBTU	Sep. 30, 2018AUD ($)MMBTU	Sep. 30, 2018NZD ($)MMBTU	Sep. 30, 2018EUR (€)MMBTU	Sep. 30, 2018USD ($)MMBTU	Dec. 31, 2017EUR (€)MMBTU	Dec. 31, 2017USD ($)MMBTU
Derivatives and Hedges
Commodity forward contracts | MMBTU		9,300,000		9,300,000	7,600,000	7,600,000	7,600,000	7,600,000	8,800,000	8,800,000
Commodity forwards contracts | Cash Flow Hedges | Derivatives designated as hedging instruments
Derivatives and Hedges
Unrecognized (loss) gain included in Accumulated OCI		$ (1)		$ (1)				$ (8)		$ 3
Amount of Gain (Loss) Recognized in OCI	$ 1	(1)	$ 6	3
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income			(1)
Foreign exchange contracts | Derivatives not designated as hedging instruments
Derivatives and Hedges
Notional amount		320		320				410		460
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other expense, net
Derivatives and Hedges
Foreign Exchange Contracts Gain (Loss) Recognized in Income		$ (2)	(1)	$ 4
Foreign exchange contracts | Cash Flow Hedges
Derivatives and Hedges
Amount of Gain (Loss) Recognized in OCI	7		8
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income	(9)		1
Cross-currency interest rate swap
Derivatives and Hedges
Notional amount							€ 154	180
Cross-currency interest rate swap | Maximum
Derivatives and Hedges
Unrecognized (loss) gain included in Accumulated OCI								1
Cross-currency interest rate swap | Cash Flow Hedges | Euro-functional subsidiaries
Derivatives and Hedges
Unrecognized (loss) gain included in Accumulated OCI								(9)
Notional amount									€ 263	310
Cross-currency interest rate swap | Cash Flow Hedges | AUD and NZD functional subsidiaries combined
Derivatives and Hedges
Unrecognized (loss) gain included in Accumulated OCI								(3)
Cross-currency interest rate swap | Cash Flow Hedges | AUD functional subsidiary
Derivatives and Hedges
Notional amount					$ 231			170
Cross-currency interest rate swap | Cash Flow Hedges | NZD functional subsidiary
Derivatives and Hedges
Notional amount						$ 161		110
Cross-currency interest rate swap | Cash Flow Hedges | Maximum | Euro-functional subsidiaries
Derivatives and Hedges
Unrecognized (loss) gain included in Accumulated OCI										$ (1)
Interest Rate Swaps | Derivatives designated as hedging instruments
Derivatives and Hedges
Notional amount | €									€ 725
Interest Rate Swaps | Cash Flow Hedges
Derivatives and Hedges
Notional amount								$ 180
Margin spread of variable rate derivative					1.25%	1.25%	1.25%	1.25%
Interest Rate Swaps | Cash Flow Hedges | Maximum
Derivatives and Hedges
Unrecognized (loss) gain included in Accumulated OCI								$ (1)
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income	$ 1		$ 1

Derivative Instruments - Balanc

Derivative Instruments - Balance Sheet Classification (Details) € in Millions, $ in Millions	Sep. 30, 2018EUR (€)	Sep. 30, 2018USD ($)	Dec. 31, 2017EUR (€)	Dec. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Mar. 31, 2017
Derivatives, Fair Value
Total asset derivatives		$ 30		$ 17	$ 5
Total liability derivatives		$ 29		$ 24	9
Senior Notes 3.125%, due 2024 (725 million EUR)
Derivatives, Fair Value
Amount Hedged | €	€ 725		€ 725
Receive Rate	3.125%	3.125%	3.125%	3.125%		3.125%
Average Spread	2.60%	2.60%	2.60%	2.60%
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other assets (current)
Derivatives, Fair Value
Total asset derivatives		$ 2		$ 4	2
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other liabilities (current)
Derivatives, Fair Value
Total liability derivatives		1		1	3
Derivatives designated as hedging instruments | Commodity futures contracts | Other assets (noncurrent)
Derivatives, Fair Value
Total asset derivatives		8		3	1
Derivatives designated as hedging instruments | Commodity futures contracts | Other liabilities (current)
Derivatives, Fair Value
Total liability derivatives					1
Derivatives designated as hedging instruments | Interest Rate Swaps | Other assets (current)
Derivatives, Fair Value
Total asset derivatives		4		6	2
Derivatives designated as hedging instruments | Interest Rate Swaps | Other liabilities (noncurrent)
Derivatives, Fair Value
Total liability derivatives		11		13	$ 5
Derivatives designated as hedging instruments | Cash flow hedges of foreign exchange risk | Other assets (current)
Derivatives, Fair Value
Total asset derivatives		11		4
Derivatives designated as hedging instruments | Cash flow hedges of foreign exchange risk | Other liabilities (noncurrent)
Derivatives, Fair Value
Total liability derivatives		12		$ 10
Derivatives designated as hedging instruments | Net investment hedges | Other assets (current)
Derivatives, Fair Value
Total asset derivatives		5
Derivatives designated as hedging instruments | Net investment hedges | Other liabilities (noncurrent)
Derivatives, Fair Value
Total liability derivatives		$ 5

Restructuring Accruals (Details

Restructuring Accruals (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Restructuring accrual
Beginning balance, restructuring reserve	$ 87	$ 111	$ 85	$ 85
Charges			70	48
Write-down of assets to net realizable value			(53)	(9)
Net cash paid, principally severance and related benefits	(9)	(14)	(21)	(30)
Other, including foreign exchange translation	(3)	1	(6)	4
Ending balance, restructuring reserve	75	98	75	98
Restructuring, Additional Information
Carrying value of impaired assets	3	0	3	0
Cost of goods sold
Restructuring accrual
Charges			5
Other expense, net
Restructuring accrual
Charges			65
Americas
Restructuring, Additional Information
Employee costs, asset impairments and other exit costs				35
Europe
Restructuring, Additional Information
Employee costs, asset impairments and other exit costs				13
Employee Costs
Restructuring accrual
Beginning balance, restructuring reserve	71	94	67	67
Charges			15	34
Net cash paid, principally severance and related benefits	(8)	(11)	(18)	(21)
Other, including foreign exchange translation	(1)	1	(2)	4
Ending balance, restructuring reserve	62	84	62	84
Asset Impairment
Restructuring accrual
Charges			53	9
Write-down of assets to net realizable value			(53)	(9)
Other Exit Costs
Restructuring accrual
Beginning balance, restructuring reserve	16	17	18	18
Charges			2	5
Net cash paid, principally severance and related benefits	(1)	(3)	(3)	(9)
Other, including foreign exchange translation	(2)		(4)
Ending balance, restructuring reserve	$ 13	$ 14	$ 13	$ 14

Pension Benefit Plans (Details)

Pension Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
U.S.
Components of net periodic pension cost
Service cost	$ 4	$ 4	$ 11	$ 11
Interest cost	15	20	45	59
Expected asset return	(25)	(33)	(74)	(98)
Amortization:
Amortization of Actuarial loss	13	14	39	44
Net periodic pension cost	7	5	21	16
Non-U.S.
Components of net periodic pension cost
Service cost	4	4	11	12
Interest cost	7	11	23	33
Expected asset return	(13)	(18)	(40)	(54)
Amortization:
Amortization of Actuarial loss	3	5	10	15
Net periodic pension cost	$ 1	$ 2	$ 4	$ 6

Income Taxes (Details)

Income Taxes (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Income Taxes
Statutory U.S. Federal tax rate (as a percent)	21.00%	35.00%

Income Taxes - Tax Cuts and Job

Income Taxes - Tax Cuts and Jobs Act ("Act") (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Dec. 31, 2017
Income Taxes
Statutory U.S. Federal tax rate (as a percent)		21.00%	35.00%
Provisional amount expected to be offset by available foreign tax credits	$ 314		$ 331
Provisional amount expected to be offset by available foreign tax credits primarily attributable to state taxes	2		$ 2
Change to income tax expense due to impact of foreign tax credits	0
Adjustment of provisional amount of transition tax	17
All adjustments of provisional amount of transition tax	$ 0	$ 0

Debt (Details)

Debt (Details) $ / shares in Units, € in Millions, $ in Millions	1 Months Ended		3 Months Ended	9 Months Ended		12 Months Ended
	Dec. 31, 2017USD ($)	Mar. 31, 2017USD ($)	Jun. 30, 2018USD ($)	Sep. 30, 2018EUR (€)itemagreement	Sep. 30, 2018USD ($)itemagreement	Dec. 31, 2017USD ($)	Sep. 30, 2018USD ($)item$ / shares	Dec. 31, 2017EUR (€)	Dec. 31, 2017USD ($)	Nov. 30, 2017USD ($)	Sep. 30, 2017EUR (€)	Sep. 30, 2017USD ($)	Mar. 31, 2017EUR (€)	Mar. 31, 2017USD ($)
Debt Instrument
Total long-term debt							$ 5,508		$ 5,132			$ 5,426
Less amounts due within one year							21		11			48
Long-term debt							5,487		5,121			5,378
Unused Credit							$ 653
Number financial maintenance covenants | agreement				1	1
Leverage Ratio | item				4.5			4.5
Accounts receivable securitization
Short-term loans and long-term debt due within one year							$ 152		162			243
Weighted average interest rate, short-term debt (as a percent)				3.40%			3.40%
Maximum
Debt Instrument
Maximum Leverage Ratio may increase | item				0.5	0.5
Maximum Borrowing Capacity							$ 1,910
Prior Agreement
Debt Instrument
Interest charges for write-off of finance fees			$ 11
Secured Credit Agreement | Minimum
Debt Instrument
Interest rate margin, Eurocurrency Rate loans (as a percent)				1.00%			1.00%
Interest rate margin, Base Rate loans (as a percent)				0.00%	0.00%
Secured Credit Agreement | Maximum
Debt Instrument
Interest rate margin, Eurocurrency Rate loans (as a percent)				1.50%			1.50%
Interest rate margin, Base Rate loans (as a percent)				0.50%	0.50%
Revolving Loans
Debt Instrument
Total long-term debt							$ 335
Revolving Loans | Prior Agreement
Debt Instrument
Total long-term debt												200
Term Loan A
Debt Instrument
Total long-term debt							908
Face Value							910
Net proceeds, after deducting debt issuance costs					$ 908
Term Loan A | Prior Agreement
Debt Instrument
Total long-term debt									1,148			1,202
Term Loan A (279 million EUR) | Prior Agreement
Debt Instrument
Total long-term debt											€ 279	308
Other secured debt
Debt Instrument
Total long-term debt							329
Senior Notes 6.75%, due 2020 (500 million EUR)
Debt Instrument
Total long-term debt				€ 500			$ 580	€ 500	594		500	586
Interest rate, stated percentage				6.75%			6.75%
Fair values of fixed rate debt obligations
Principal Amount							$ 582
Indicated Market Price (in dollars per share) | $ / shares							$ 113.10
Fair Value							$ 658
Senior Notes 4.875%, due 2021 (330 million EUR)
Debt Instrument
Total long-term debt				€ 330			$ 382	€ 330	392		330	386
Interest rate, stated percentage				4.875%			4.875%
Fair values of fixed rate debt obligations
Principal Amount							$ 384
Indicated Market Price (in dollars per share) | $ / shares							$ 111.05
Fair Value							$ 426
Senior Notes 5.00%, due 2022
Debt Instrument
Total long-term debt							$ 497		496			496
Interest rate, stated percentage				5.00%			5.00%
Fair values of fixed rate debt obligations
Principal Amount							$ 500
Indicated Market Price (in dollars per share) | $ / shares							$ 100.93
Fair Value							$ 505
Senior Notes 4.00%, due 2023
Debt Instrument
Total long-term debt							$ 306		$ 305
Interest rate, stated percentage				4.00%			4.00%	4.00%	4.00%
Face Value									$ 310
Net proceeds, after deducting debt issuance costs	$ 305
Fair values of fixed rate debt obligations
Principal Amount							$ 310
Indicated Market Price (in dollars per share) | $ / shares							$ 95.57
Fair Value							$ 296
Senior Notes 5.875%, due 2023
Debt Instrument
Total long-term debt							$ 687		685			684
Interest rate, stated percentage				5.875%			5.875%
Fair values of fixed rate debt obligations
Principal Amount							$ 700
Indicated Market Price (in dollars per share) | $ / shares							$ 103.08
Fair Value							$ 722
Senior Notes 3.125%, due 2024 (725 million EUR)
Debt Instrument
Total long-term debt				€ 725			$ 828	€ 725	$ 849		€ 725	840
Interest rate, stated percentage				3.125%			3.125%	3.125%	3.125%				3.125%	3.125%
Face Value | €													€ 225
Net proceeds, after deducting debt issuance costs		$ 237
Fair values of fixed rate debt obligations
Principal Amount							$ 844
Indicated Market Price (in dollars per share) | $ / shares							$ 103.40
Fair Value							$ 873
Senior Notes 6.375%, due 2025
Debt Instrument
Total long-term debt							$ 295		$ 295			295
Interest rate, stated percentage				6.375%			6.375%
Fair values of fixed rate debt obligations
Principal Amount							$ 300
Indicated Market Price (in dollars per share) | $ / shares							$ 103.88
Fair Value							$ 312
Senior Notes, 5.375% due 2025
Debt Instrument
Total long-term debt							$ 297		297			297
Interest rate, stated percentage				5.375%			5.375%
Fair values of fixed rate debt obligations
Principal Amount							$ 300
Indicated Market Price (in dollars per share) | $ / shares							$ 98.90
Fair Value							$ 297
Senior Debentures 7.80%, due 2018
Debt Instrument
Total long-term debt										$ 22		22
Interest rate, stated percentage				7.80%			7.80%			7.80%
Face Value														$ 228
Interest charges for write-off of finance fees						$ 18
Capital leases
Debt Instrument
Total long-term debt							$ 48		54			54
Other
Debt Instrument
Total long-term debt							16		$ 17			$ 56
Revolving Credit Facility
Debt Instrument
Total long-term debt							300
Additional default interest rate per annum applied to all obligations owed under the Agreement				2.00%	2.00%
Revolving Credit Facility | Minimum
Debt Instrument
Facility fee payable (as a percent)				0.20%	0.20%
Revolving Credit Facility | Maximum
Debt Instrument
Facility fee payable (as a percent)				0.30%	0.30%
Multicurrency Revolving Credit Facility
Debt Instrument
Total long-term debt							$ 700
European Accounts Receivable Securitization Program
Debt Instrument
Termination of accounts receivable securitization | €				€ 185

Contingencies - Asbestos (Detai

Contingencies - Asbestos (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2018USD ($)item	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 1993USD ($)
Asbestos
Sale of goods containing asbestos from 1948 to 1958	$ 40,000,000
Number of pending plaintiffs and claimants | item	1,065
Period in which significant majority of claims to be received	10 years
Approximate number of claims disposed of to date | item	399,800
Average indemnity payment per claim	$ 9,700
Asbestos-related cash payments		$ 110,000,000	$ 125,000,000	$ 138,000,000
Cash payments per claim disposed including legal costs		83,000	71,000	95,000
Asbestos-related liability, total amount accrued beginning in 1993 through 2018 before insurance recoveries	$ 4,900,000,000				$ 975,000,000
Accrual of asbestos related liability		582,000,000	692,000,000
Asbestos related charges		0	$ 0	$ 16,000,000
Maximum
Asbestos
Loss contingency, plaintiffs damages		$ 725,000,000
Damages unspecified or sufficient to invoke jurisdictional minimum
Asbestos
Percentage of asbestos plaintiffs, approximate percentage		89.00%
Damages of $15 million or less
Asbestos
Percentage of asbestos plaintiffs, approximate percentage		8.00%
Damages of $15 million or less | Maximum
Asbestos
Loss contingency, plaintiffs damages		$ 15,000,000
Damages greater than $15 million but less than $100 million
Asbestos
Percentage of asbestos plaintiffs, approximate percentage		3.00%
Damages greater than $15 million but less than $100 million | Minimum
Asbestos
Loss contingency, plaintiffs damages		$ 15,000,000
Damages greater than $15 million but less than $100 million | Maximum
Asbestos
Loss contingency, plaintiffs damages		$ 100,000,000

Share Owners' Equity (Details)

Share Owners' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jan. 31, 2018	Dec. 31, 2017
Increase (Decrease) in Share Owners' Equity
Balance	$ 898	$ 779	$ 927	$ 363
Issuance of common stock (in shares)	10,000	30,000	30,000	50,000
Reissuance of common stock	$ 3	$ 2	$ 7	$ 7
Reissuance of common stock (in shares)	100,000	100,000	300,000	300,000
Treasury shares purchased	$ (12)		$ (107)
Treasury shares purchased (in shares)	682,028		5,358,150
Stock compensation	$ 5	$ 5	$ 21	$ 13
Stock compensation (in shares)	50,000	100,000	700,000	300,000
Net earnings	$ 127	$ 133	$ 285	$ 329
Other comprehensive income (loss)	46	20	(66)	227
Balance	$ 1,067	$ 939	$ 1,067	$ 939
Repurchase of common stock					$ 400
Authorization of common stock
Common stock, shares authorized	250,000,000		250,000,000
Common stock, par value (in dollars per share)	$ 0.01		$ 0.01
Shares of common stock issued (including treasury shares)	186,440,000	185,722,000	186,440,000	185,722,000		185,728,000
Treasury stock, shares	27,741,000	22,731,000	27,741,000	22,731,000		22,649,000
Common Stock
Increase (Decrease) in Share Owners' Equity
Balance	$ 2	$ 2	$ 2	$ 2
Balance	2	2	2	2
Capital in Excess of Par Value
Increase (Decrease) in Share Owners' Equity
Balance	3,115	3,088	3,099	3,080
Stock compensation	5	5	21	13
Balance	3,120	3,093	3,120	3,093
Treasury Stock
Increase (Decrease) in Share Owners' Equity
Balance	(642)	(555)	(551)	(560)
Reissuance of common stock	3	2	7	7
Treasury shares purchased	(12)		(107)
Balance	(651)	(553)	(651)	(553)
Retained Earnings
Increase (Decrease) in Share Owners' Equity
Balance	232	92	85	(96)
Net earnings	120	126	267	314
Balance	352	218	352	218
Accumulated Other Comprehensive Loss.
Increase (Decrease) in Share Owners' Equity
Balance	(1,929)	(1,957)	(1,827)	(2,172)
Other comprehensive income (loss)	54	19	(48)	234
Balance	(1,875)	(1,938)	(1,875)	(1,938)
Non-Controlling Interests
Increase (Decrease) in Share Owners' Equity
Balance	120	109	119	109
Net earnings	7	7	18	15
Other comprehensive income (loss)	(8)	1	(18)	(7)
Balance	$ 119	$ 117	$ 119	$ 117

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Increase (Decrease) Accumulated Other Comprehensive Loss, Net of Tax
Other comprehensive income (loss)	$ 46	$ 20	$ (66)	$ 227
Net Effect of Exchange Rate Fluctuations
Increase (Decrease) Accumulated Other Comprehensive Loss, Net of Tax
Balance at beginning of the period	(856)	(578)	(724)	(788)
Change before reclassifications	40	9	(92)	219
Other comprehensive income (loss)	40	9	(92)	219
Balance at end of the period	(816)	(569)	(816)	(569)
Change in Certain Derivative Instruments
Increase (Decrease) Accumulated Other Comprehensive Loss, Net of Tax
Balance at beginning of the period	(18)	(14)	(12)	(4)
Change before reclassifications	(11)		(7)
Amounts reclassified from accumulated other comprehensive income	9			(10)
Translation effect	1
Other comprehensive income (loss)	(1)		(7)	(10)
Balance at end of the period	(19)	(14)	(19)	(14)
Employee Benefit Plans
Increase (Decrease) Accumulated Other Comprehensive Loss, Net of Tax
Balance at beginning of the period	(1,055)	(1,365)	(1,091)	(1,380)
Change before reclassifications	(1)	(2)	(8)	(12)
Amounts reclassified from accumulated other comprehensive income	16	19	49	58
Translation effect		(7)	10	(21)
Other comprehensive income (loss)	15	10	51	25
Balance at end of the period	(1,040)	(1,355)	(1,040)	(1,355)
Accumulated Other Comprehensive Loss.
Increase (Decrease) Accumulated Other Comprehensive Loss, Net of Tax
Balance at beginning of the period	(1,929)	(1,957)	(1,827)	(2,172)
Change before reclassifications	28	7	(107)	207
Amounts reclassified from accumulated other comprehensive income	25	19	49	48
Translation effect	1	(7)	10	(21)
Other comprehensive income (loss)	54	19	(48)	234
Balance at end of the period	$ (1,875)	$ (1,938)	$ (1,875)	$ (1,938)

Other Expense (Income), net (De

Other Expense (Income), net (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Other Expense (Income), net
Restructuring, asset impairment and other charges			$ 68	$ 49
Foreign currency exchange gain	$ 4	$ 3	6	3
Intangible amortization expense	10	11	30	31
Royalty income	(3)	(4)	(9)	(11)
Non-income tax gain	(13)		(13)
Other income (including gains on asset sales), net	(18)	(5)	(33)	(11)
Other Expense (Income), net	$ (20)	$ 5	$ 49	$ 61

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Numerator:
Net earnings attributable to the Company	$ 120	$ 126	$ 267	$ 314
Denominator (in thousands):
Denominator for basic earnings per share - weighted average shares outstanding (in shares)	159,032,000	162,866,000	160,936,000	162,658,000
Effect of dilutive securities:
Stock options and other (in shares)	2,003,000	2,127,000	2,041,000	1,782,000
Denominator for diluted earnings per share - adjusted weighted average shares outstanding (in shares)	161,035,000	164,993,000	162,977,000	164,440,000
Basic earnings per share:
Earnings from continuing operations (in dollars per share)	$ 0.75	$ 0.78	$ 1.67	$ 1.94
Loss from discontinued operations (in dollars per share)		(0.01)	(0.01)	(0.01)
Net earnings (in dollars per share)	0.75	0.77	1.66	1.93
Diluted earnings per share:
Earnings from continuing operations (in dollars per share)	0.75	0.77	1.65	1.92
Loss from discontinued operations (in dollars per share)		(0.01)	(0.01)	(0.01)
Net earnings (in dollars per share)	$ 0.75	$ 0.76	$ 1.64	$ 1.91
Weighted average shares of common stock attributable to options not included in diluted earnings per share (in shares)	1,794,634	1,168,671	1,854,809	1,664,845

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Supplemental Cash Flow Information
Interest paid in cash	$ 188	$ 209
Income taxes paid in cash	96	120
Interest paid for note repurchase premiums related to debt repaid prior to maturity		16
Amount of receivables sold	289	145
U.S.
Supplemental Cash Flow Information
Income taxes paid in cash	9	7
Non-U.S.
Supplemental Cash Flow Information
Income taxes paid in cash	$ 87	$ 113

Discontinued Operations (Detail

Discontinued Operations (Details) $ in Millions	Jul. 31, 2017USD ($)	Apr. 04, 2016Plant	Mar. 31, 2018subsidiary	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)
Subsidiaries
Loss from discontinued operations					$ (2)	$ (1)	$ (2)
Minimum
Subsidiaries
Litigation settlement amount						500
Discontinued Operations, Disposed of by Sale | OI European Group B.V. (“OIEG”)
Subsidiaries
Litigation settlement amount	$ 115
Disposed Venezuelan subsidiaries
Subsidiaries
Expropriated plants | Plant		2
Number of subsidiaries seeking an annulment | subsidiary			2
Loss from discontinued operations					$ (2)	$ (1)	$ (2)
Disposed Venezuelan subsidiaries | Maximum
Subsidiaries
Loss from discontinued operations				$ (1)

New Accounting Pronouncement (D

New Accounting Pronouncement (Details) $ in Millions	Dec. 31, 2017USD ($)
New Accounting Pronouncement
Minimum lease commitments under non-cancellable operating leases	$ 258