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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2017	Feb. 16, 2018	Jun. 30, 2017
Document and Entity Information
Entity Registrant Name	Ingredion Inc
Entity Central Index Key	0001046257
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 8,486,000,000
Entity Common Stock, Shares Outstanding		72,235,558
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY

Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Consolidated Statements of Income
Net sales before shipping and handling costs	$ 6,180	$ 6,022	$ 5,958
Less: shipping and handling costs	348	318	337
Net sales	5,832	5,704	5,621
Cost of sales	4,359	4,302	4,379
Gross profit	1,473	1,402	1,242
Operating expenses	611	579	555
Other income, net	(18)	(4)	(1)
Restructuring/impairment charges	38	19	28
Operating income	842	808	660
Financing costs, net	73	66	61
Income before income taxes	769	742	599
Provision for income taxes	237	246	187
Net income	532	496	412
Less: Net income attributable to non-controlling interests	13	11	10
Net income attributable to Ingredion	$ 519	$ 485	$ 402
Weighted average common shares outstanding:
Basic (in shares)	72.0	72.3	71.6
Diluted (in shares)	73.5	74.1	73.0
Earnings per common share of Ingredion:
Basic (in dollars per share)	$ 7.21	$ 6.70	$ 5.62
Diluted (in dollars per share)	$ 7.06	$ 6.55	$ 5.51

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Consolidated Statements of Comprehensive Income (Loss)
Net income	$ 532	$ 496	$ 412
Other comprehensive income:
Losses on cash-flow hedges, net of income tax effect of $6, $6, and $19, respectively	(10)	(11)	(42)
Losses on cash flow hedges reclassified to earnings, net of income tax effect of $2, $16, and $14, respectively	4	33	32
Actuarial gains (losses) on pension and other postretirement obligations, settlements and plan amendments, net of income tax effect of $2, $4, and $5, respectively	6	(10)	13
(Gains) losses related to pension and other postretirement obligations reclassified to earnings, net of income tax effect of $1, $-, and $-, respectively	(1)	1	1
Unrealized gains on investments, net of income tax effect of $1, $-, and $-, respectively	2	1
Currency translation adjustment	57	7	(324)
Comprehensive income	590	517	92
Less: Comprehensive income attributable to non-controlling interests	13	12	10
Comprehensive income attributable to Ingredion	$ 577	$ 505	$ 82

Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Consolidated Statements of Comprehensive Income (Loss)
Gains / (loss) on cash-flow hedges, net of income tax effect	$ 6	$ 6	$ 19
Amount of losses on cash-flow hedges reclassified to earnings, net of income tax effect of	(2)	(16)	(14)
Actuarial gain (loss) on pension and other postretirement obligations, settlements and plan amendments, net of income tax effect	(2)	$ 4	$ (5)
(Gains) losses related to pension and other postretirement obligations reclassified to earnings, net of income tax effect	1
Unrealized gains on investments, net of income tax effect	$ (1)

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 595	$ 512
Short-term investments	9	4
Accounts receivable, net	961	923
Inventories	823	789
Prepaid expenses	27	24
Total current assets	2,415	2,252
Property, plant and equipment
Land	225	183
Buildings	731	704
Machinery and equipment	4,252	4,055
Property, Plant and Equipment, at cost	5,208	4,942
Less: accumulated depreciation	(2,991)	(2,826)
Property, plant and equipment - net	2,217	2,116
Goodwill	803	784
Other intangible assets, net of accumulated amortization of $139 and $106, respectively	493	502
Deferred income tax assets	9	7
Other assets	143	121
Total assets	6,080	5,782
Current liabilities:
Short-term borrowings	120	106
Accounts payable	493	440
Accrued liabilities	344	432
Total current liabilities	957	978
Non-current liabilities	227	158
Long-term debt	1,744	1,850
Deferred income tax liabilities	199	171
Share-based payments subject to redemption	36	30
Ingredion stockholders’ equity:
Preferred stock — authorized 25,000,000 shares — $0.01 par value, none issued
Common stock — authorized 200,000,000 shares — $0.01 par value, 77,810,875 issued at December 31, 2017 and December 31, 2016, respectively	1	1
Additional paid-in capital	1,138	1,149
Less: Treasury stock (common stock: 5,815,904 and 5,396,526 shares at December 31, 2017 and December 31, 2016, respectively) at cost	(494)	(413)
Accumulated other comprehensive loss	(1,013)	(1,071)
Retained earnings	3,259	2,899
Total Ingredion stockholders’ equity	2,891	2,565
Non-controlling interests	26	30
Total equity	2,917	2,595
Total liabilities and equity	$ 6,080	$ 5,782

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Other intangible assets - accumulated amortization (in dollars)	$ 139	$ 106
Preferred stock, authorized shares	25,000,000	25,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, issued shares	0	0
Common stock, authorized shares	200,000,000	200,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued	77,810,875	77,810,875
Treasury stock, shares	5,815,904	5,396,526
Common Stock Issued
Common stock, shares issued	77,811,000	77,811,000
Treasury Stock
Common stock, shares issued	5,815,000	5,397,000
Common Stock Shares Outstanding
Common stock, shares issued	71,996,000	72,414,000

Condensed Consolidated Statements of Equity - USD ($) $ in Millions	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Other Comprehensive Loss	Retained Earnings	Non-controlling Interests	Total
Balance at Dec. 31, 2014	$ 1	$ 1,164	$ (481)	$ (782)	$ 2,275	$ 30
Increase (Decrease) in Stockholders' Equity
Net income attributable to Ingredion					402		$ 402
Net income attributable to non-controlling interests						10	(10)
Dividends declared					(125)	(4)
Repurchases of common stock			(34)
Share-based compensation, net of issuance		(4)	48				2
Other comprehensive income (loss)				(320)			(320)
Balance at Dec. 31, 2015	1	1,160	(467)	(1,102)	2,552	36
Increase (Decrease) in Stockholders' Equity
Net income attributable to Ingredion					485		485
Net income attributable to non-controlling interests						11	(11)
Dividends declared					(138)	(7)
Share-based compensation, net of issuance		(11)	54				6
Other comprehensive income (loss)				31		(10)	31
Balance at Dec. 31, 2016	1	1,149	(413)	(1,071)	2,899	30	2,595
Increase (Decrease) in Stockholders' Equity
Net income attributable to Ingredion					519		519
Net income attributable to non-controlling interests						13	(13)
Dividends declared					(159)	(15)
Repurchases of common stock			(123)
Share-based compensation, net of issuance		(11)	42				6
Other comprehensive income (loss)				58		(2)	58
Balance at Dec. 31, 2017	$ 1	$ 1,138	$ (494)	$ (1,013)	$ 3,259	$ 26	$ 2,917

Condensed Consolidated Statement of Redeemable Equity $ in Millions	USD ($)
Beginning Balance at Dec. 31, 2014	$ 22
Condensed Consolidated Statements of Equity and Redeemable Equity
Share-based compensation, net of issuance	2
Ending Balance at Dec. 31, 2015	24
Condensed Consolidated Statements of Equity and Redeemable Equity
Share-based compensation, net of issuance	6
Ending Balance at Dec. 31, 2016	30
Condensed Consolidated Statements of Equity and Redeemable Equity
Share-based compensation, net of issuance	6
Ending Balance at Dec. 31, 2017	$ 36

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash provided by operating activities
Net income	$ 532	$ 496	$ 412
Non-cash charges to net income:
Depreciation and amortization	209	196	194
Mechanical stores expense	57	57	57
Deferred income taxes	67	(5)	(6)
Write-off of impaired assets			10
Gain on sale of plant			(10)
Charge for fair value markup of acquired inventory	9		10
Other	39	44	39
Changes in working capital:
Accounts receivable and prepaid expenses	(44)	(131)	(29)
Inventories	(34)	(19)	9
Accounts payable and accrued liabilities	(49)	127	30
Margin accounts	6	15	(34)
Other	(23)	(9)	4
Cash provided by operating activities	769	771	686
Cash used for investing activities
Payments for acquisitions, net of cash acquired of $-, $4, and $16, respectively	(17)	(407)	(434)
Capital expenditures and mechanical stores purchases	(314)	(284)	(280)
Investment in non-consolidated affiliate		(2)
Short-term investments	(3)	1	27
Proceeds from disposal of plants and properties	8	3	38
Cash used for investing activities	(326)	(689)	(649)
Cash used for financing activities
Proceeds from borrowings	1,144	1,000	1,388
Payments on debt	(1,240)	(874)	(1,366)
Debt issuance costs		(6)
Repurchase of common stock	(123)	(8)	(41)
Issuances of common stock for share-based compensation, net of settlements	9	29	21
Dividends paid (including to non-controlling interests)	(165)	(141)	(126)
Excess tax benefit on share-based compensation			8
Cash used for financing activities	(375)		(116)
Effects of foreign exchange rate changes on cash	15	(4)	(67)
Increase (decrease) in cash and cash equivalents	83	78	(146)
Cash and cash equivalents, beginning of period	512	434	580
Cash and cash equivalents, end of period	$ 595	$ 512	$ 434

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Condensed Consolidated Statements of Cash Flows
Cash acquired from acquisition	$ 4	$ 16

Description of the Business	12 Months Ended
Description of the Business	Dec. 31, 2017
Description of the Business
Description of the Business	NOTE 1 – Description of the Business Ingredion Incorporated (“the Company”) was founded in 1906 and became an independent and public company as of December 31, 1997. The Company primarily manufactures and sells sweetener, starches, nutrition ingredients, and biomaterial solutions derived from the wet milling and processing of corn and other starch-based materials to a wide range of industries, both domestically and internationally.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

NOTE 2 – Summary of Significant Accounting Policies

Basis of presentation: The consolidated financial statements consist of the accounts of the Company, including all significant subsidiaries. Intercompany accounts and transactions are eliminated in consolidation.

The preparation of the accompanying consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the value of purchase consideration, valuation of accounts receivable, inventories, goodwill, intangible assets and other long-lived assets, legal contingencies, guarantee obligations, and assumptions used in the calculation of income taxes, and pension and other postretirement benefits, among others. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Management will adjust such estimates and assumptions when facts and circumstances dictate. Foreign currency devaluations, corn price volatility, access to difficult credit markets, and adverse changes in the global economic environment have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates will be reflected in the financial statements in future periods.

Assets and liabilities of foreign subsidiaries, other than those whose functional currency is the U.S. dollar, are translated at current exchange rates with the related translation adjustments reported in equity as a component of accumulated other comprehensive income (loss). The U.S. dollar is the functional currency for the Company’s Mexican subsidiary. Income statement accounts are translated at the average exchange rate during the period. However, significant non-recurring items related to a specific event are recognized at the exchange rate on the date of the significant event. For foreign subsidiaries where the U.S. dollar is the functional currency, monetary assets and liabilities are translated at current exchange rates with the related adjustment included in net income. Non-monetary assets and liabilities are translated at historical exchange rates. Although the Company hedges the predominance of its transactional foreign exchange risk (see Note 6), the Company incurs foreign currency transaction gains and losses relating to assets and liabilities that are denominated in a currency other than the functional currency. For 2017, 2016, and 2015, the Company incurred foreign currency transaction net losses of $5 million, $3 million, and $6 million, respectively. The Company’s accumulated other comprehensive loss included in equity on the Consolidated Balance Sheets includes cumulative translation losses of approximately $1 billion at both December 31, 2017 and 2016.

Cash and cash equivalents: Cash equivalents consist of all instruments purchased with an original maturity of three months or less, and which have virtually no risk of loss in value.

Accounts receivable, net: Accounts receivable, net, consist of trade and other receivables carried at approximate fair value, net of an allowance for doubtful accounts based on specific identification of material amounts at risk and a general reserve based on historical collection experience.

Inventories: Inventories are stated at the lower of cost or net realizable value. Costs are predominantly determined using the weighted average method.

Investments: Investments in the common stock of affiliated companies over which the Company does not exercise significant influence are accounted for under the cost method. In 2016, the Company invested in SweeGen Inc., which it accounts for under the cost method and which had a carrying value of $2 million as of both December 31, 2017 and 2016. Investments that enable the Company to exercise significant influence, but do not represent a controlling interest, are accounted for under the equity method; such investments are carried at cost, adjusted to reflect the Company’s proportionate share of income or loss, less dividends received. The Company did not have any investments accounted for under the equity method at December 31, 2017, or 2016. The Company has equity interests in the CME Group Inc. and CBOE Holdings, Inc., which are classified as available for sale securities. The investments are carried at fair value with unrealized gains and losses recorded to other comprehensive income. The Company would recognize a loss on its investments when there is a loss in value of an investment that is other than temporary. Investments are included in other assets in the Consolidated Balance Sheets and are not significant.

Leases: The Company leases rail cars, certain machinery and equipment, and office space. The Company classifies its leases as either capital or operating based on the terms of the related lease agreement and the criteria contained in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 840, Leases, and related interpretations.

Property, plant and equipment and depreciation: Property, plant and equipment (“PP&E”) are stated at cost less accumulated depreciation. Depreciation is generally computed on the straight-line method over the estimated useful lives of depreciable assets, which range from 25 to 50 years for buildings and from two to 25 years for all other assets. Where permitted by law, accelerated depreciation methods are used for tax purposes. The Company recognized depreciation expense of $179 million, $171 million, and $172 million for the years ended December 31, 2017, 2016, and 2015, respectively. The Company reviews the recoverability of the net book value of PP&E for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable from estimated future cash flows expected to result from its use and eventual disposition. If this review indicates that the carrying values will not be recovered, the carrying values would be reduced to fair value and an impairment loss would be recognized. As required under accounting principles generally accepted in the U.S., the impairment analysis for long-lived assets occurs before the goodwill impairment assessment described below.

Goodwill and other intangible assets: Goodwill ($803 million and $784 million at December 31, 2017 and 2016, respectively) represents the excess of the cost of an acquired entity over the fair value assigned to identifiable assets acquired and liabilities assumed. The Company also has other intangible assets of $493 million and $502 million at December 31, 2017 and 2016, respectively. The carrying value of goodwill by reportable business segment at December 31, 2017 and 2016 was as follows:


	North			South		Asia
(in millions)	America			America		Pacific		EMEA		Total
Balance at December 31, 2015	$	424		$	22	$	86	$	69	$	601
Acquisitions		186			—		—		—		186
Currency translation		—			4		(1)		(6)		(3)
Balance at December 31, 2016		610			26		85		63		784
Acquisitions		(10)	(a)		—		15		—		5
Currency translation		—			—		7		7		14
Balance at December 31, 2017	$	600		$	26	$	107	$	70	$	803

(a)

Related to TIC Gums Incorporated (“TIC Gums”) purchase price accounting adjustments

The original carrying value of goodwill by reportable business segment and accumulated impairment charges by reportable business segment at December 31, 2017 and 2016 were as follows:


	North		South		Asia
	America		America		Pacific		EMEA		Total
Goodwill before impairment charges	$	611	$	59	$	206	$	63	$	939
Accumulated impairment charges		(1)		(33)		(121)		—		(155)
Balance at December 31, 2016		610		26		85		63		784

Goodwill before impairment charges		601		59		228		70		958
Accumulated impairment charges		(1)		(33)		(121)		—		(155)
Balance at December 31, 2017	$	600	$	26	$	107	$	70	$	803

The following table summarizes the Company’s other intangible assets for the periods presented:


	As of December 31, 2017
(in millions)	Gross		Accumulated Amortization		Net		Weighted Average Useful Life (years)
Trademarks/tradenames (indefinite-lived)	$	178	$	—	$	178	—
Customer relationships		329		(62)		267	20
Technology		103		(68)		35	9
Other		22		(9)		13	16
Total other intangible assets	$	632	$	(139)	$	493	18

	As of December 31, 2016
(in millions)	Gross		Accumulated Amortization		Net		Weighted Average Useful Life (years)
Trademarks/tradenames (indefinite-lived)	$	143	$	—	$	143	—
Customer relationships		227		(42)		185	20
Technology		100		(57)		43	10
TIC Gums intangible assets (preliminary)		117		—		117	Various
Other		21		(7)		14	16
Total other intangible assets	$	608	$	(106)	$	502	17

For definite-lived intangible assets, the Company recognizes the cost of such amortizable assets in operations over their estimated useful lives and evaluates the recoverability of the assets whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Amortization expense related to intangible assets was $30 million in 2017, $25 million in 2016, and $22 million in 2015.

Based on acquisitions completed through December 31, 2017, including the purchase price allocations for Sun Flour Industry Co., Ltd. (“Sun Flour”), intangible asset amortization expense for the next five years is shown below. The amortization is subject to change based on finalization of the purchase accounting for Sun Flour.


(in millions)
Year	Amortization Expense
2018	$	29
2019		29
2020		27
2021		19
2022		18
Balance thereafter		193

The Company assesses goodwill and other indefinite-lived intangible assets for impairment annually (or more frequently if impairment indicators arise). The Company has chosen to perform this annual impairment assessment as of October 1 of each year.

In testing goodwill for impairment, the Company first assesses qualitative factors in determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. After assessing the qualitative factors, if the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount then the Company does not perform the two-step impairment test. If the Company concludes otherwise, then it performs the first step of the two-step impairment test as described in ASC Topic 350. In the first step (“Step One”), the fair value of the reporting unit is compared to its carrying value. If the fair value of the reporting unit exceeds the carrying value of its net assets, goodwill is not considered impaired and no further testing is required. If the carrying value of the net assets exceeds the fair value of the reporting unit, a second step (“Step Two”) of the impairment assessment is performed in order to determine the implied fair value of a reporting unit's goodwill. Determining the implied fair value of goodwill requires a valuation of the reporting unit's tangible and intangible assets and liabilities in a manner similar to the allocation of purchase price in a business combination. If the carrying value of the reporting unit's goodwill exceeds the implied fair value of its goodwill, goodwill is deemed impaired and is written down to the extent of the difference. Based on the results of the annual assessment, the Company concluded that as of October 1, 2017, it was more likely than not that the fair value of our reporting units was greater than their carrying value. We continue to monitor our reporting units in struggling economies and recent acquisitions for challenges in the business that may negatively impact the fair value of these reporting units.

In testing indefinite-lived intangible assets for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is impaired. After assessing the qualitative factors, if the Company determines that it is not more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount, then it would not be required to compute the fair value of the indefinite-lived intangible asset. In the event the qualitative assessment leads the Company to conclude otherwise, then it would be required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test in accordance with ASC subtopic 350-30. In performing the qualitative analysis, the Company considers various factors including net sales derived from these intangibles and certain market and industry conditions. Based on the results of this qualitative assessment, the Company concluded that as of October 1, 2017, it was more likely than not that the fair value of the indefinite-lived intangible assets was greater than their carrying value.

Revenue recognition: The Company recognizes operating revenues at the time title to the goods and all risks of ownership transfer to the customer. This transfer is considered complete when a sales agreement is in place, delivery has occurred, pricing is fixed or determinable and collection is reasonably assured. In the case of consigned inventories, the title passes and the transfer of ownership risk occurs when the goods are used by the customer. Taxes assessed by governmental authorities and collected from customers are accounted for on a net basis and excluded from revenues.

Hedging instruments: The Company uses derivative financial instruments principally to offset exposure to market risks arising from changes in commodity prices, foreign currency exchange rates and interest rates. Derivative financial instruments used by the Company consist of commodity futures and option contracts, forward currency contracts and options, interest rate swap agreements and Treasury lock agreements (“T-Locks”). The Company enters into futures and option contracts, which are designated as hedges of specific volumes of commodities (primarily corn and natural gas) that will be purchased in a future month. These derivative financial instruments are recognized in the Consolidated Balance Sheets at fair value. The Company has also entered into interest rate swap agreements that effectively convert the interest rate on certain fixed rate debt to a variable interest rate and, on certain variable rate debt, to a fixed interest rate. The Company periodically enters into T-Locks to hedge its exposure to interest rate changes. See also Note 6 and Note 7 of the Notes to the Consolidated Financial Statements for additional information.

On the date a derivative contract is entered into, the Company designates the derivative as either a hedge of variable cash flows to be paid related to interest on variable rate debt, as a hedge of market variation in the benchmark rate for a future fixed rate debt issue, as a hedge of foreign currency cash flows associated with certain forecasted commercial transactions or loans, as a hedge of certain forecasted purchases of corn, natural gas or ethanol used in the manufacturing process (“a cash flow hedge”), or as a hedge of the fair value of certain debt obligations (“a fair value hedge”). This process includes linking all derivatives that are designated as fair value or cash flow hedges to specific assets and liabilities on the Consolidated Balance Sheets, or to specific firm commitments or forecasted transactions. For all hedging relationships, the Company documents the hedging relationships and its risk-management objective and strategy for undertaking the hedge transactions, the hedging instrument, the hedged item, the nature of the risk being hedged, how the hedging instrument’s effectiveness in offsetting the hedged risk will be assessed and a description of the method of measuring ineffectiveness. The Company also formally assesses both, at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows or fair values of hedged items. When it is determined that a derivative is not highly effective as a hedge or has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively.

Changes in the fair value of floating-to-fixed interest rate swaps, T-Locks, commodity futures, and option contracts or foreign currency forward contracts, swaps, and options that are highly effective and that are designated and qualify as cash flow hedges are recorded in other comprehensive income, net of applicable income taxes. Realized gains and losses associated with changes in the fair value of interest rate swaps and T-Locks are reclassified from accumulated other comprehensive income (“AOCI”) to the Consolidated Statements of Income over the life of the underlying debt. Gains and losses on hedges of foreign currency cash flows associated with certain forecasted commercial transactions or loans are reclassified from AOCI to the Consolidated Statements of Income when such transactions or obligations are settled. Gains and losses on commodity hedging contracts are reclassified from AOCI to the Consolidated Statement of Income when the finished goods produced using the hedged item are sold. The maximum term over which the Company hedges exposures to the variability of cash flows for commodity price risk is generally 24 months. Changes in the fair value of a fixed-to-floating interest rate swap agreement that is highly effective and that is designated and qualifies as a fair value hedge, along with the loss or gain on the hedged debt obligation, are recorded in earnings. The ineffective portion of the change in fair value of a derivative instrument that qualifies as either a cash flow hedge or a fair value hedge is reported in earnings.

The Company discontinues hedge accounting prospectively when it is determined that the derivative is no longer effective in offsetting changes in the cash flows or fair value of the hedged item, the derivative is de-designated as a hedging instrument because it is unlikely that a forecasted transaction will occur, or management determines that designation of the derivative as a hedging instrument is no longer appropriate. When hedge accounting is discontinued, the Company continues to carry the derivative on the Consolidated Balance Sheets at its fair value, and gains and losses that were included in AOCI are recognized in earnings in the same line item affected by the hedged transaction and in the same period or periods during which the hedged transaction affects earnings, or in the month a hedge is determined to be ineffective.

The Company uses derivative financial instruments such as foreign currency forward contracts, swaps and options to manage the transactional foreign exchange risk that is created when transactions not denominated in the functional currency of the operating unit are revalued. The changes in fair value of these derivative instruments and the offsetting changes in the value of the underlying non-functional currency denominated transactions are recorded in earnings on a monthly basis.

Share-based compensation: The Company has a stock incentive plan that provides for share-based employee compensation, including the granting of stock options, shares of restricted stock, restricted stock units, and performance shares to certain key employees. Compensation expense is recognized in the Consolidated Statements of Income for the Company’s share-based employee compensation plan. The plan is more fully described in Note 12 of the Notes to the Consolidated Financial Statements.

Earnings per common share: Basic earnings per common share (“EPS”) is computed by dividing net income attributable to Ingredion by the weighted average number of shares outstanding, which totaled 72.0 million for 2017, 72.3 million for 2016 and 71.6 million for 2015. Diluted EPS is calculated using the treasury stock method, computed by dividing net income attributable to Ingredion by the weighted average number of shares outstanding, including the dilutive effect of outstanding stock options and other instruments associated with long-term incentive compensation plans. The weighted average number of shares outstanding for diluted EPS calculations was 73.5 million, 74.1 million and 73.0 million for 2017, 2016, and 2015, respectively. Approximately 0.3 million, 0, and 0.3 million share-based awards of common stock were excluded in 2017, 2016, and 2015, respectively, from the calculation of the weighted average number of shares outstanding for diluted EPS because their effects were anti-dilutive.

Risks and uncertainties: The Company operates domestically and internationally. In each country, the business and assets are subject to varying degrees of risk and uncertainty. The Company insures its business and assets in each country against insurable risks in a manner that it deems appropriate. Because of this geographic dispersion, the Company believes that a loss from non-insurable events in any one country would not have a material adverse effect on the Company’s operations as a whole. Additionally, the Company believes there is no significant concentration of risk with any single customer or supplier whose failure or non-performance would materially affect the Company’s results.

New accounting standards: In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) that introduces a new five-step revenue recognition model in which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The FASB has also issued additional ASUs to provide further updates and clarification to this Update, including ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20. This standard is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. We will adopt the standard as of the effective date, January 1, 2018. The standard will allow various transition approaches upon adoption. We plan to use the modified retrospective approach for the transition to the new standard. Based on the analysis performed by the Company to date, our assessment is that the adoption of the guidance in this Update is not expected to have a material impact on the Company’s revenue recognition timing or amounts, as we have not identified any material changes to the recognition of revenue for existing customer contracts.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes Topic 840, Leases. This Update increases the transparency and comparability of organizations by recognizing lease assets and lease liabilities on the balance sheet for leases longer than 12 months and disclosing key information about leasing arrangements. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed. This Update is effective for annual periods beginning after December 15, 2018, with early adoption permitted. We currently plan to adopt the standard as of the effective date. Adoption will require a modified retrospective approach for the transition. We expect the adoption of the guidance in this Update to have a material impact on our Consolidated Balance Sheets, as operating leases will be recognized both as assets and liabilities on the Consolidated Balance Sheets. We are in the process of quantifying the magnitude of these changes and assessing the implementation approach for accounting for these changes.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This Update simplifies the subsequent measurement of Goodwill as the Update eliminates Step 2 from the goodwill impairment test. Instead, under the Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should then recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the loss recognized not to exceed the total amount of goodwill allocated to that reporting unit. This Update is effective for annual periods beginning after December 15, 2019, with early adoption permitted.

In March 2017, the FASB issued ASU No. 2017-07, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This Update requires an entity to change the classification of the net periodic benefit cost for pension and postretirement plans within the statement of income by eliminating the ability to net all of the components of the costs together within operating income. The Update will require the service cost component to continue to be presented within operating income, classified within either cost of sales or operating expenses depending on the employees covered within the plan. The remaining components of the net periodic benefit cost, however, must be presented in the statement of income as a non-operating income (loss) below operating income. The Update is effective for annual periods beginning after December 15, 2017, with early adoption permitted only within the first interim period for public entities. We plan to adopt this Update in 2018. When adopted, the new guidance must be applied retrospectively for all income statement periods presented. The Update will reduce the Company’s operating income and will require a new financial statement line item below operating income within the Consolidated Statements of Income for the non-operating income (loss) components. Net income within the Consolidated Statements of Income will not change upon adoption of the Update.

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This Update modifies accounting guidance for hedge accounting by making more hedge strategies eligible for hedge accounting, amending presentation and disclosure requirements, and changing how companies assess ineffectiveness. The intent is to simplify the application of hedge accounting and increase transparency of information about an entity’s risk management activities. The amended guidance is effective for annual periods beginning after December 15, 2018, with early adoption permitted. We are in the process of assessing the effects of these updates including potential changes to existing hedging arrangement, as well as the implementation approach for accounting for these changes.

Acquisitions

12 Months Ended

Dec. 31, 2017

Acquisitions

Acquisitions

NOTE 3 – Acquisitions

On March 9, 2017, the Company completed its acquisition of Sun Flour in Thailand for $18 million. As of December 31, 2017, the Company had paid $16 million in cash and recorded $2 million in accrued liabilities for deferred payments due to the previous owner. The Company funded the acquisition primarily with cash on-hand. The acquisition of Sun Flour adds a fourth manufacturing facility to our operations in Thailand. Sun Flour produces rice-based ingredients used primarily in the food industry. The results of the acquired operation are included in the Company’s consolidated results from the acquisition date forward within the Asia Pacific business segment, and $14 million of goodwill was allocated to that segment.

On December 29, 2016, the Company completed its acquisition of TIC Gums, a privately held, U.S.-based company that provides advanced texture systems to the food and beverage industry, for $396 million, net of cash acquired. The acquisition adds a manufacturing facility in both the U.S. and China. The Company funded the acquisition with proceeds from borrowings under its revolving credit agreement. The results of the acquired operations are included in the Company’s consolidated results from the respective acquisition dates forward within the North America and Asia Pacific business segments, and $175 million and $2 million of goodwill was allocated to those segments, respectively.

On November 29, 2016, the Company completed its acquisition of Shandong Huanong Specialty Corn Development Co., Ltd. (“Shandong Huanong”) in China for $12 million in cash. The Company funded the acquisition primarily with cash on-hand. The acquisition of Shandong Huanong, located in Shandong Province, adds second manufacturing facility to our operations in China. It produces starch raw material for our plant in Shanghai, which makes value-added ingredients for the food industry. The results of the acquired operation are included in the Company’s consolidated results from the acquisition date forward within the Asia Pacific business segment.

On August 3, 2015, the Company completed its acquisition of Kerr Concentrates, Inc. (“Kerr”), a privately held producer of natural fruit and vegetable concentrates for $102 million in cash. Kerr serves major food and beverage companies, flavor houses and ingredient producers from its manufacturing locations in Oregon and California. The acquisition of Kerr provided the Company with the opportunity to expand its product portfolio. The Company finalized the purchase price allocation during the first quarter of 2016, which did not have a significant impact on previously estimated amounts. As a result of the acquisition, $27 million of goodwill was allocated to the North America segment.

On March 11, 2015, the Company completed its acquisition of Penford Corporation (“Penford”), a manufacturer of specialty starches that was headquartered in Centennial, Colorado. Total purchase consideration for Penford was $332 million, which included the extinguishment of $93 million in debt in conjunction with the acquisition. Purchase accounting for Penford was completed in 2015. The acquisition of Penford provides the Company with, among other things, an expanded specialty ingredient product portfolio consisting of potato starch-based offerings. Penford operates six manufacturing facilities in the U.S., all of which manufacture specialty starches. As a result of the acquisition, $121 million of goodwill was allocated to the North America segment.

A preliminary allocation of the purchase price to the assets acquired and liabilities assumed was made based on available information and incorporating management’s best estimates. The assets acquired and liabilities assumed for each acquisition in the transactions are generally recorded at their estimated acquisition date fair values, while transaction costs associated with the acquisitions were expensed as incurred. Goodwill and intangible assets are open to be finalized for purchase accounting for Sun Flour as of December 31, 2017.

Goodwill represents the amount by which the purchase price exceeds the estimated fair value of the net assets acquired. The goodwill of $177 million and $27 million for TIC Gums and Kerr, respectively, result from synergies and other operational benefits expected to be derived from the acquisitions. The goodwill related to TIC Gums, Shandong, and Kerr acquisitions is tax deductible due to the structure of the acquisitions. The goodwill related to Sun Flour is not tax deductible.

The following table summarizes the finalized purchase price allocations for the acquisitions of TIC Gums and Kerr as of December 29, 2016, and August 3, 2015, respectively:




(in millions)		TIC Gums		Kerr
Working capital (excluding cash)	$	49	$	37
Property, plant and equipment		37		8
Other assets		—		1
Identifiable intangible assets		133		29
Goodwill		177		27
Total purchase price, net of cash	$	396	$	102

The identifiable intangible assets for the acquisition of TIC Gums and Kerr included items such as customer relationships, trade names, proprietary technology, and non-competition agreements. The fair values of these intangible assets were determined to be Level 3 under the fair value hierarchy. Level 3 inputs are unobservable inputs for an asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for fair value estimates to be made in situations in which there is little, if any, market activity for an asset or liability at the measurement date. For more information on the fair value hierarchy, see Note 6.

The following table presents the fair values, valuation techniques, and estimated remaining useful life at the acquisition date for these Level 3 measurements (dollars in millions):


				Estimated
TIC Gums	Fair Value		Valuation Technique	Useful Life
Customer relationships	$	94	Multi-period excess earnings method	20 years
Trade names		35	Relief-from-royalty method	Indefinite
Proprietary technology		4	Relief-from-royalty method	8 years


				Estimated
Kerr	Fair Value		Valuation Technique	Useful Life
Customer relationships	$	24	Multi-period excess earnings method	15 years
Trade names		4	Relief-from-royalty method	11 years
Non-competition agreements		1	Income approach method	3 years

The fair value of customer relationships, trade names, proprietary technology, and non-competition agreements were determined through the valuation techniques described above using various judgmental assumptions such as discount rates, royalty rates, and customer attrition rates, as applicable. The fair values of property, plant and equipment associated with the acquisitions were determined to be Level 3 under the fair value hierarchy. Property, plant and equipment values were estimated using either the cost or market approach.

The acquisitions of Sun Flour and Shandong Huanong added $21 million to goodwill and identifiable intangible assets and $9 million to net tangible assets as of their respective acquisition dates.

Included in the results of the acquired businesses for the years ended December 31, 2017 and 2015 was an increase in pre-tax cost of sales of $9 million and $10 million, respectively, relating to the sale of inventory that was adjusted to fair value at the acquisition dates for each acquired business in accordance with business combination accounting rules. The fair value adjustments for the year ended December 31, 2016, were not material.

Pro-forma results of operations for the acquisitions made in 2017, 2016, and 2015 have not been presented as the effect of each acquisition individually and in aggregate would not be material to the Company’s results of operations for any periods presented.

The Company incurred $4 million, $3 million, and $10 million of pre-tax acquisition and integration costs in 2017, 2016, and 2015, respectively, associated with its acquisitions.

Sale of Canadian Plant	12 Months Ended
Sale of Canadian Plant	Dec. 31, 2017
Discontinued Operations and Disposal Groups [Abstract]
Sale of Canadian Plant	NOTE 4 – Sale of Canadian Plant On December 15, 2015, the Company sold its manufacturing assets in Port Colborne, Ontario, Canada for $35 million in cash. The Company recorded a pre-tax gain of $10 million on the sale, net of the write-off of goodwill of $2 million associated with the business. The Company also recorded pre-tax restructuring charges of $4 million in 2015 associated with the sale of the plant as described below. Additionally, in 2016 the Company recorded pre-tax restructuring charges of $2 million related to the Port Colborne plant sale.

Impairment and Restructuring Charges

12 Months Ended

Dec. 31, 2017

Impairment and Restructuring Charges

Impairment and Restructuring Charges

NOTE 5 – Impairment and Restructuring Charges

In 2017, the Company recorded $38 million of pre-tax restructuring charges. During the first quarter of 2017, the Company implemented an organizational restructuring effort in Argentina in order to achieve a more competitive cost position. The Company notified the local labor union of a planned reduction in workforce, which resulted in a strike by the labor union and an interruption of manufacturing activities during the second quarter of 2017. The Company finalized a new labor agreement with the labor union in the second quarter, ending the strike on June 1, 2017. For the year ended December 31, 2017, the Company recorded total pre-tax restructuring-related charges in Argentina of $17 million for employee-related severance and other costs.

During the second quarter of 2017, the Company announced a Finance Transformation initiative in North America for the U.S. and Canada businesses to strengthen organizational capabilities and drive efficiencies to support the growth strategy of the Company. For the year ended December 31, 2017, the Company recorded pre-tax restructuring charges of $6 million ($3 million of severance costs and $3 million of other costs) related to this initiative. The Company expects to incur between $1 million and $2 million of additional employee-related severance and other costs in 2018.

During the fourth quarter of 2017, the Company recorded $13 million of pre-tax restructuring charges related to its leaf extraction process in Brazil. The charges consisted of $6 million of abandonment of certain assets, $6 million of inventory write downs and $1 million related to other costs, including employee-related severance costs. The Company expects to incur $1 million of additional other costs in 2018.

Additionally for the year ended December 31, 2017, the Company recorded $2 million of other pre-tax restructuring charges including other employee-related severance costs in North America and a refinement of estimates for prior year restructuring activities.

In 2016, the Company recorded $19 million of restructuring charges consisting of $11 million of employee-related severance and other costs due to the execution of global information technology outsourcing contracts, $6 million of employee-related severance costs associated with the Company’s optimization initiatives in North America and South America, and $2 million of costs attributable to the 2015 Port Colborne plant sale.

A summary of the Company’s severance accrual at December 31, 2017, is as follows (in millions):


Balance in severance accrual as of December 31, 2016	$	7
Restructuring charge for employee-related severance costs:
Argentina		15
North America Finance Transformation		3
Other		3
Prior year restructuring activities		(2)
Payments made to terminated employees		(15)
Balance in severance accrual as of December 31, 2017	$	11

Of the $11 million severance accrual at December 31, 2017, $10 million is expected to be paid within the next 12 months.

The Company assesses goodwill and other indefinite-lived intangible assets for impairment annually (or more frequently if impairment indicators arise) as of October 1 of each year. No goodwill impairment was recognized in the fourth quarters of 2017, 2016, or 2015 related to the Company’s annual impairment testing.

Financial Instruments, Derivatives and Hedging Activities

12 Months Ended

Dec. 31, 2017

Financial Instruments, Derivatives and Hedging Activities

Financial Instruments, Derivatives and Hedging Activities

NOTE 6 – Financial Instruments, Derivatives and Hedging Activities

The Company is exposed to market risk stemming from changes in commodity prices (primarily corn and natural gas), foreign currency exchange rates and interest rates. In the normal course of business, the Company actively manages its exposure to these market risks by entering into various hedging transactions, authorized under established policies that place clear controls on these activities. These transactions utilize exchange-traded derivatives or over-the-counter derivatives with investment grade counterparties. Derivative financial instruments currently used by the Company consist of commodity-related futures, options and swap contracts, foreign currency-related forward contracts, interest rate swaps and T-Locks.

Commodity price hedging: The Company’s principal use of derivative financial instruments is to manage commodity price risk in North America relating to anticipated purchases of corn and natural gas to be used in the manufacturing process, generally over the next 12 to 24 months. The Company maintains a commodity-price risk management strategy that uses derivative instruments to minimize significant, unanticipated earnings fluctuations caused by commodity-price volatility. For example, the manufacturing of the Company’s products requires a significant volume of corn and natural gas. Price fluctuations in corn and natural gas cause the actual purchase price of corn and natural gas to differ from anticipated prices.

To manage price risk related to corn purchases in North America, the Company uses corn futures and options contracts that trade on regulated commodity exchanges to lock-in its corn costs associated with firm-priced customer sales contracts. The Company uses over-the-counter natural gas swaps to hedge a portion of its natural gas usage in North America. These derivative financial instruments limit the impact that volatility resulting from fluctuations in market prices will have on corn and natural gas purchases and have been designated as cash flow hedges. The Company also enters into futures contracts to hedge price risk associated with fluctuations in the market price of ethanol. Unrealized gains and losses associated with marking the commodity hedging contracts to market (fair value) are recorded as a component of other comprehensive income (“OCI”) and included in the equity section of the Consolidated Balance Sheets as part of AOCI. These amounts are subsequently reclassified into earnings in the same line item affected by the hedged transaction and in the same period or periods during which the hedged transaction affects earnings, or in the month a hedge is determined to be ineffective. The Company assesses the effectiveness of a commodity hedge contract based on changes in the contract’s fair value. The changes in the market value of such contracts have historically been, and are expected to continue to be, highly effective at offsetting changes in the price of the hedged items. The amounts representing the ineffectiveness of these cash flow hedges are not significant.

As of December 31, 2017, AOCI included $12 million of losses (net of tax of $7 million) pertaining to commodities-related derivative instruments designated as cash flow hedges. As of December 31, 2016, AOCI included an insignificant amount pertaining to commodities-related derivative instruments designated as cash flow hedges.

Interest rate hedging: The Company assesses its exposure to variability in interest rates by identifying and monitoring changes in interest rates that may adversely impact future cash flows and the fair value of existing debt instruments, and by evaluating hedging opportunities. The Company maintains risk management control systems to monitor interest rate risk attributable to both the Company’s outstanding and forecasted debt obligations as well as the Company’s offsetting hedge positions. The risk management control systems involve the use of analytical techniques, including sensitivity analysis, to estimate the expected impact of changes in interest rates on future cash flows and the fair value of the Company’s outstanding and forecasted debt instruments.

Derivative financial instruments that have been used by the Company to manage its interest rate risk consist of interest rate swaps and T-Locks. The Company periodically enters into T-Locks to hedge its exposure to interest rate changes. The T-Locks are designated as hedges of the variability in cash flows associated with future interest payments caused by market fluctuations in the benchmark interest rate until the fixed interest rate is established, and are accounted for as cash flow hedges. Accordingly, changes in the fair value of the T-Locks are recorded to AOCI until the consummation of the underlying debt offering, at which time any realized gain (loss) is amortized to earnings over the life of the debt. The Company also has interest rate swap agreements that effectively convert the interest rates on $200 million of its $400 million of 4.625 percent senior notes, due November 1, 2020, to variable rates. These swap agreements call for the Company to receive interest at the fixed coupon rate of the respective notes and to pay interest at a variable rate based on the six-month U.S. LIBOR rate plus a spread. The Company has designated these interest rate swap agreements as hedges of the changes in fair value of the underlying debt obligations attributable to changes in interest rates and accounts for them as fair value hedges. Changes in the fair value of interest rate swaps designated as hedging instruments that effectively offset the variability in the fair value of outstanding debt obligations are reported in earnings. These amounts offset the gain or loss (the change in fair value) of the hedged debt instrument that is attributable to changes in interest rates (the hedged risk), which is also recognized in earnings. The fair value of these interest rate swap agreements as of December 31, 2017 and 2016 was $1 million and $3 million, respectively, and is reflected in the Consolidated Balance Sheets within other assets, with an offsetting amount recorded in long-term debt to adjust the carrying amount of hedged debt obligations. The Company did not have any T-Locks outstanding as of December 31, 2017, or 2016. As of December 31, 2017 and 2016, AOCI included $2 million of losses (net of income taxes of $1 million) and $4 million of losses (net of income taxes of $2 million), respectively, related to settled T-Locks. These deferred losses are being amortized to financing costs over the terms of the senior notes with which they are associated.

Foreign currency hedging: Due to the Company’s global operations, including operations in many emerging markets, it is exposed to fluctuations in foreign currency exchange rates. As a result, the Company has exposure to translational foreign exchange risk when the results of its foreign operations are translated to U.S. dollars and to transactional foreign exchange risk when transactions not denominated in the functional currency are revalued. The Company primarily uses derivative financial instruments such as foreign currency forward contracts, swaps and options to manage its transactional foreign exchange risk. As of December 31, 2017, the Company had foreign currency forward sales contracts that are designated as fair value hedges with an aggregate notional amount of $447 million and foreign currency forward purchase contracts with an aggregate notional amount of $121 million that hedged transactional exposures. As of December 31, 2016, the Company had foreign currency forward sales contracts with an aggregate notional amount of $432 million and foreign currency forward purchase contracts with an aggregate notional amount of $227 million that hedged transactional exposures. The fair values of these derivative instruments were assets of $11 million and $5 million at December 31, 2017 and 2016, respectively.

The Company also has foreign currency derivative instruments that hedge certain foreign currency transactional exposures and are designated as cash flow hedges. As of December 31, 2017, AOCI included $1 million of gains (net of income taxes of $1 million) related to foreign currency derivative instruments. As of December 31, 2016, the amounts included in AOCI related to these hedges were not significant.

By using derivative financial instruments to hedge exposures, the Company exposes itself to credit risk and market risk. Credit risk is the risk that the counterparty will fail to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk for the Company. When the fair value of a derivative contract is negative, the Company owes the counterparty and, therefore, it does not possess credit risk. The Company minimizes the credit risk in derivative instruments by entering into over-the-counter transactions only with investment grade counterparties or by utilizing exchange-traded derivatives. Market risk is the adverse effect on the value of a financial instrument that results from a change in commodity prices, interest rates or foreign exchange rates. The market risk associated with commodity-price, interest rate or foreign exchange contracts is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken.

The fair value and balance sheet location of the Company’s derivative instruments, presented gross in the Consolidated Balance Sheets, are reflected below:


	Fair Value of Derivative Instruments as of December 31, 2017
Derivatives Designated as Hedging Instruments (in millions):	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity and foreign currency	Accounts receivable, net	$	11	Accounts payable and accrued liabilities	$	23
Commodity, foreign currency, and interest rate contracts	Other assets		3	Non-current liabilities		8
Total		$	14		$	31


	Fair Value of Derivative Instruments as of December 31, 2016
Derivatives Designated as Hedging Instruments (in millions):	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity and foreign currency	Accounts receivable, net	$	31	Accounts payable and accrued liabilities	$	25
Commodity, foreign currency, and interest rate contracts	Other assets		8	Non-current liabilities		2
		$	39		$	27

As of December 31, 2017, the Company had outstanding futures and option contracts that hedged the forecasted purchase of approximately 92 million bushels of corn and 16 million pounds of soybean oil. The Company is unable to directly hedge price risk related to co-product sales; however, it occasionally enters into hedges of soybean oil (a competing product to corn oil) in order to mitigate the price risk of corn oil sales. The Company also had outstanding swap and option contracts that hedged the forecasted purchase of approximately 35 million mmbtu’s of natural gas at December 31, 2017. Additionally at December 31, 2017, the Company had outstanding ethanol futures contracts that hedged the forecasted sale of approximately 4 million gallons of ethanol.

Additional information relating to the Company’s derivative instruments is presented below (in millions, pre-tax):


	Year ended December 31, 2017
Derivatives in Cash Flow Hedging Relationships	Amount of Gains (Losses) Recognized in OCI on Derivatives		Location of Gains (Losses) Reclassified from AOCI into Income	Amount of Gains (Losses) Reclassified from AOCI into Income
Commodity contracts	$	(22)	Cost of sales	$	(5)
Foreign currency contracts		6	Net sales/Cost of sales		1
Interest rate contracts		—	Financing costs, net		(2)
Total	$	(16)		$	(6)


	Year ended December 31, 2016
Derivatives in Cash Flow Hedging Relationships	Amount of Gains (Losses) Recognized in OCI on Derivatives		Location of Gains (Losses) Reclassified from AOCI into Income	Amount of Gains (Losses) Reclassified from AOCI into Income
Commodity contracts	$	(15)	Cost of sales	$	(45)
Foreign currency contracts		(2)	Net sales/Cost of sales		(2)
Interest rate contracts		—	Financing costs, net		(2)
Total	$	(17)		$	(49)


	Year ended December 31, 2015
Derivatives in Cash Flow Hedging Relationships	Amount of Gains (Losses) Recognized in OCI on Derivatives		Location of Gains (Losses) Reclassified from AOCI into Income	Amount of Gains (Losses) Reclassified from AOCI into Income
Commodity contracts	$	(61)	Cost of sales	$	(43)
Foreign currency contracts		—	Net sales/Cost of sales		—
Interest rate contracts		—	Financing costs, net		(3)
Total	$	(61)		$	(46)

As of December 31, 2017, AOCI included approximately $9 million of losses (net of income taxes of $5 million), on commodities-related derivative instruments designated as cash flow hedges that are expected to be reclassified into earnings during the next 12 months. Transactions and events expected to occur over the next twelve months that will necessitate reclassifying these derivative losses to earnings include the sale of finished goods inventory that includes previously hedged purchases of corn, natural gas and ethanol. The Company expects the losses to be offset by changes in the underlying commodities costs. Additionally at December 31, 2017, AOCI included $1 million of losses (net of income taxes of $1 million) on settled T-Locks and $1 million of gains (net of income taxes of $1 million) related to foreign currency hedges which are expected to be reclassified into earnings during the next 12 months. Cash flow hedges discontinued during 2017 or 2016 were not significant.

Presented below are the fair values of the Company’s financial instruments and derivatives for the periods presented:


	As of December 31, 2017								As of December 31, 2016
(in millions)	Total		Level 1 (a)		Level 2 (b)		Level 3 (c)		Total		Level 1 (a)		Level 2 (b)		Level 3 (c)
Available for sale securities	$	10	$	10	$	—	$	—	$	7	$	7	$	—	$	—
Derivative assets		14		3		11		—		39		6		33		—
Derivative liabilities		31		11		20		—		27		11		16		—
Long-term debt		1,845		—		1,845		—		1,929		—		1,929		—

(a)

Level 1 inputs consist of quoted prices (unadjusted) in active markets for identical assets or liabilities.

(b)

Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly for substantially the full term of the financial instrument. Level 2 inputs are based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability or can be derived principally from or corroborated by observable market data.

(c)

Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for fair value estimates to be made in situations in which there is little, if any, market activity for the asset or liability at the measurement date.

The carrying values of cash equivalents, short-term investments, accounts receivable, accounts payable, and short-term borrowings approximate fair values. Commodity futures, options, and swap contracts are recognized at fair value. Foreign currency forward contracts, swaps, and options are also recognized at fair value. The fair value of the Company’s long-term debt is estimated based on quotations of major securities dealers who are market makers in the securities. Presented below are the carrying amounts and the fair values of the Company’s long-term debt at December 31, 2017 and 2016.


	December 31, 2017				December 31, 2016
	Carrying		Fair		Carrying		Fair
(in millions)	Amount		Value		Amount		Value
3.2% senior notes due October 1, 2026	$	496	$	492	$	496	$	482
4.625% senior notes due November 1, 2020		398		421		398		428
6.625% senior notes due April 15, 2037		254		325		254		299
5.62% senior notes due March 25, 2020		200		212		200		217
1.8% senior notes due September 25, 2017		—		—		299		301
6.0% senior notes due April 15, 2017		—		—		200		202
Term loan credit agreement due April 25, 2019		395		395		—		—
Revolving credit facility		—		—		—		—
Fair value adjustment related to hedged fixed rate debt instrument		1		—		3		—
Total long-term debt	$	1,744	$	1,845	$	1,850	$	1,929

Financing Arrangements

12 Months Ended

Dec. 31, 2017

Debt

Financing Arrangements

NOTE 7 – Financing Arrangements

The Company had total debt outstanding of $1.9 billion and $2.0 billion at December 31, 2017 and 2016, respectively. Short-term borrowings at December 31, 2017 and 2016 consist primarily of amounts outstanding under various unsecured local country operating lines of credit.

The $200 million of 6.0 percent senior notes due April 15, 2017, were refinanced with borrowings under the revolving credit facility in April 2017.

On August 18, 2017, the Company entered into a new Term Loan Credit Agreement (“Term Loan”) to establish a senior unsecured term loan credit facility. Under the Term Loan, the Company is allowed three borrowings in an amount of up to $500 million total. The Term Loan matures 18 months from the date of the final borrowing. As of October 25, 2017, the Company had initiated all three borrowings under the Term Loan totaling $420 million, due April 25, 2019. The proceeds were used to refinance $300 million of 1.8 percent senior notes due September 25, 2017, and pay down borrowings outstanding on the revolving credit facility.

All borrowings under the Term Loan facility will bear interest at a variable annual rate based on the LIBOR or base rate, at the Company’s election, subject to the terms and conditions thereof, plus, in each case, an applicable margin. The Term Loan Credit Agreement contains customary representations, warranties, covenants, events of default, terms and conditions, including limitations on liens, incurrence of debt, mergers and significant asset dispositions. The Company must also comply with a leverage ratio and interest coverage ratio. The occurrence of an event of default under the Term Loan Credit Agreement could result in all loans and other obligations being declared due and payable and the term loan credit facility being terminated.

In December 2017, the Company paid down $25 million of the Term Loan. On January 16, 2018, the Company paid an additional $185 million towards the Term Loan. Both payments were made with cash on-hand.

On September 22, 2016, the Company issued 3.2 percent Senior Notes due October 1, 2026, in an aggregate principal amount of $500 million. These notes are unsecured obligations of the Company and rank equally with all of the Company’s other existing and future unsecured, senior indebtedness. Interest on the notes is required to be paid semi-annually in arrears on April 1 and October 1 of each year, commencing April 1, 2017. The Company may redeem these notes at its option, at any time in whole or from time to time in part, at the redemption prices set forth in the supplemental indenture pursuant to which these notes were issued. The net proceeds from the sale of the notes of approximately $497 million were used to repay the $350 million due under the Company’s Term Loan Credit Agreement, plus accrued interest, to repay $52 million of borrowings under the Company’s previously existing $1 billion revolving credit facility and for general corporate purposes.

On October 11, 2016, the Company entered into a new five-year, senior, unsecured $1 billion revolving credit agreement (the “Revolving Credit Agreement”) that replaced our previously existing $1 billion senior unsecured revolving credit facility that would have matured on October 22, 2017.

Subject to certain terms and conditions, the Company may increase the amount of the revolving facility under the Revolving Credit Agreement by up to $500 million in the aggregate. The Company may also obtain up to two one-year extensions of the maturity date of the Revolving Credit Agreement at its requests and subject to the agreement of the lenders. All committed pro rata borrowings under the revolving facility will bear interest at a variable annual rate based on the LIBOR or base rate, at the Company’s election, subject to the terms and conditions thereof, plus, in each case, an applicable margin based on the Company’s leverage ratio (as reported in the financial statements delivered pursuant to the Revolving Credit Agreement) or the Company’s credit rating. Subject to specified conditions, the Company may designate one or more of its subsidiaries as additional borrowers under the Revolving Credit Agreement provided that the Company guarantees all borrowings and other obligations of any such subsidiaries thereunder.

The Revolving Credit Agreement contains customary representations, warranties, covenants, events of default, terms and conditions, including limitations on liens, incurrence of subsidiary debt and mergers. The Company must also comply with a leverage ratio covenant and an interest coverage ratio covenant. The occurrence of an event of default under the Revolving Credit Agreement could result in all loans and other obligations under the agreement being declared due and payable and the revolving credit facility being terminated.

As of December 31, 2017, there were no borrowings outstanding under the Revolving Credit Agreement. In addition to borrowing availability under its Revolving Credit Agreement, the Company has approximately $488 million of unused operating lines of credit in the various foreign countries in which it operates.

Long-term debt, net of related discounts, premiums and debt issuance costs consists of the following at December 31:



(in millions)		2017		2016
3.2% senior notes due October 1, 2026	$	496	$	496
4.625% senior notes due November 1, 2020		398		398
6.625% senior notes due April 15, 2037		254		254
5.62% senior notes due March 25, 2020		200		200
1.8% senior notes due September 25, 2017		—		299
6.0% senior notes due April 15, 2017		—		200
Term loan credit agreement due April 25, 2019		395		—
Revolving credit facility		—		—
Fair value adjustment related to hedged fixed rate debt instruments		1		3
Long-term debt		1,744		1,850
Short-term borrowings		120		106
Total debt	$	1,864	$	1,956

The Company’s long-term debt matures as follows: $600 million in 2020, $500 million in 2026, and $250 million in 2037.

The Company’s term loan of $395 million matures in 2019.

The Company guarantees certain obligations of its consolidated subsidiaries. The amount of the obligations guaranteed aggregated $56 million and $121 million at December 31, 2017 and 2016, respectively.

Leases

12 Months Ended

Dec. 31, 2017

Leases

Leases

NOTE 8 – Leases

The Company leases rail cars, certain machinery and equipment, and office space under various operating leases. Rental expense under operating leases was $51 million, $53 million and $52 million in 2017, 2016, and 2015, respectively. Minimum lease payments due on non-cancellable leases existing at December 31, 2017, are shown below:


Year (in millions)	Minimum Lease Payments
2018	$	45
2019		40
2020		31
2021		25
2022		20
Balance thereafter		36

Income Taxes

12 Months Ended

Dec. 31, 2017

Income Taxes

Income Taxes

NOTE 9 – Income Taxes

The components of income before income taxes and the provision for income taxes are shown below:


(in millions)	2017		2016		2015
Income before income taxes:
U.S.	$	226	$	176	$	109
Foreign		543		566		490
Total income before income taxes		769		742		599
Provision for income taxes:
Current tax (benefit) expense:
U.S. federal		(13)		95		26
State and local		4		8		3
Foreign		179		148		164
Total current tax expense		170		251		193
Deferred tax expense (benefit):
U.S. federal		77		13		(8)
State and local		4		1		(1)
Foreign		(14)		(19)		3
Total deferred tax expense (benefit)		67		(5)		(6)
Total provision for income taxes	$	237	$	246	$	187

Deferred income taxes are provided for the tax effects of temporary differences between the financial reporting basis and tax basis of assets and liabilities. Significant temporary differences as of December 31, 2017 and 2016 are summarized as follows:


(in millions)	2017		2016
Deferred tax assets attributable to:
Employee benefit accruals	$	20	$	39
Pensions and postretirement plans		20		30
Derivative contracts		5		3
Net operating loss carryforwards		32		18
Foreign tax credit carryforwards		—		4
Other		—		24
Gross deferred tax assets		77		118
Valuation allowances		(34)		(21)
Net deferred tax assets		43		97
Deferred tax liabilities attributable to:
Property, plant and equipment		185		206
Identified intangibles		37		55
Other		11		—
Gross deferred tax liabilities		233		261
Net deferred tax liabilities	$	190	$	164

Of the $32 million of tax-effected net operating loss carryforwards as of December 31, 2017, approximately $9 million are for state loss carryforwards and approximately $23 million are for foreign loss carryforwards. Of the $18 million of tax-effected net operating loss carryforwards as of December 31, 2016, approximately $8 million are for state loss carryforwards. Income tax accounting requires that a valuation allowance be established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. In making this assessment, management considers the level of historical taxable income, scheduled reversal of deferred tax liabilities, tax planning strategies, tax carryovers, and projected future taxable income. As of December 31, 2017, the Company maintains valuation allowances of $9 million for state loss carryforwards, $2 million for state credits, and $21 million for foreign loss carryforwards that management has determined will more likely than not expire prior to realization. As of December 31, 2016, the Company maintains valuation allowances of $8 million for state loss carryforwards, $2 million for state credits and $9 million for foreign loss carryforwards that management has determined will more likely than not expire prior to realization. In addition, the Company maintains valuation allowances on foreign subsidiaries’ net deferred tax assets of $2 million for both the years ended December 31, 2017 and 2016.

A reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate follows:


	2017		2016		2015
Provision for tax at U.S. statutory rate	35.0	%	35.0	%	35.0	%
Tax rate difference on foreign income	(5.6)		(5.5)		(5.8)
State and local taxes, net	0.7		0.3		0.3
Tax impact of fluctuations in Mexican peso to U.S. dollar	(0.5)		2.4		2.9
Net impact of U.S. foreign tax credits	0.3		(2.3)		0.9
Net impact of U.S.-Canada tax settlement	(1.3)		3.2		—
Net impact of valuation allowance in Argentina	2.0		1.0		—
Net impact of transition tax	2.7		—		—
Net impact of U.S. deferred tax remeasurement	(4.9)		—		—
Net impact of provision for taxes on unremitted earnings	4.3		0.5		—
Other items, net	(1.9)		(1.5)		(2.1)
Provision at effective tax rate	30.8	%	33.1	%	31.2	%

The Company has significant operations in Canada, Mexico, and Pakistan where the statutory tax rates are 25 percent, 30 percent and 30 percent in 2017, respectively. In addition, the Company's subsidiary in Brazil has a statutory tax rate of 34 percent before local incentives that vary each year.

The Tax Cuts and Jobs Act (“TCJA”) was enacted on December 22, 2017. The TCJA introduced numerous changes in the U.S. federal tax laws. Changes that have a significant impact on our effective tax rate are a reduction in the U.S. corporate tax rate from 35 percent to 21 percent and the imposition of a U.S. tax on our global intangible low-taxed income (“GILTI”). The TCJA also provides for a one-time transition tax on the deemed repatriation of cumulative foreign earnings as of December 31, 2017, and eliminates the tax on dividends from our foreign subsidiaries by allowing a 100 percent dividends received deduction.

On December 22, 2017, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to provide guidance on the application of GAAP to situations in which the registrant does not have all the necessary information available, prepared or analyzed (including computations) in sufficient detail to complete the accounting for the income tax effects of the TCJA.

The Company has calculated what it believes is a reasonable estimate of the impact of the TCJA in accordance with SAB 118 and its understanding of the TCJA, including published guidance as of the date of this filing, and has recorded $23 million of provisional income tax expense in the fourth quarter of 2017, the period in which the TCJA was enacted. The provisional amount of $23 million is composed of the following four items:


(in millions)
One-time transition tax	$	21
Remeasurement of deferred tax assets and liabilities		(38)
Net impact of provision for taxes on unremitted earnings		33
Other items, net		7
Net impact of the TCJA on our 2017 income tax expense	$	23

The Company may update its estimate in 2018 as additional information, including guidance from federal and state regulatory agencies, becomes available and it finalizes its computations, which are complex and subject to interpretation. Any adjustment to these provisional tax amounts will be recorded in the quarter of 2018 in which the analysis is completed.

Under a provision in the TCJA, all of the undistributed earnings of our foreign subsidiaries were deemed to be repatriated at December 31, 2017, and were subjected to a transition tax. As a result, a provisional transition tax liability of $21 million, or 2.7 percentage points on effective tax rate, was recorded in income from continuing operations in the fourth quarter of 2017. Although these earnings that were deemed to be repatriated are not subject to additional U.S. federal income tax upon distribution, these earnings could be subject to foreign withholding and state income tax upon distribution. In addition, distributions of these previously-taxed earnings could give rise to taxable exchange gain or loss in the U.S.

As a result of the reduction in the U.S. corporate tax rate, the Company recorded a provisional tax benefit of $38 million, or 4.9 percentage points on the effective tax rate, due to the remeasurement of its U.S. net deferred tax liabilities.

Due to a change in the U.S. tax treatment of dividends received from foreign subsidiaries, the Company has recorded a provisional tax liability of $33 million, or 4.3 percentage points on the effective tax rate, for foreign dividend withholding and state income taxes payable upon the distribution of unremitted earnings from certain foreign subsidiaries from which it expects to receive cash distributions in 2018 and beyond.

The net impact of the TCJA on its 2017 tax expense includes a provisional tax liability of $7 million, or 0.9 percentage points on the effective tax rate (included in other items, net), for the difference in its 2017 tax expense as calculated with and without the changes triggered by the TCJA.

Because of the complexity of the new GILTI rules, the Company is continuing to evaluate this provision of the TCJA for the application of ASC 740. Under GAAP, the Company is allowed to make an accounting policy choice of either treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or factoring such amounts into our measurement of our deferred taxes (the “deferred method”). The Company has not made any adjustments related to potential GILTI tax in its financial statements, as it has not made a policy decision regarding whether to record deferred taxes on GILTI.

The Company had been pursuing relief from double taxation under the U.S.-Canada tax treaty for the years 2004 through 2013. During the fourth quarter of 2016, a tentative settlement was reached between the U.S. and Canada and, consequently, the Company established a net reserve of $24 million, including interest thereon, recorded as a $70 million cost and a $46 million benefit, or 3.2 percentage points, on the effective tax rate. In addition, as a result of the settlement, for the years 2014 through 2016, the Company had established a net reserve of $7 million, or 1.0 percentage points, on the effective tax rate in 2016. In the third quarter of 2017, the two countries finalized the agreement, which eliminated the double taxation, and the Company paid $63 million to the U.S. Internal Revenue Service to settle the liability. As a result of that agreement, the Company is entitled to a net tax benefit of $10 million primarily due to a foreign exchange loss deduction on its 2017 U.S. federal income tax return, or 1.3 percentage points, on the effective tax rate.

The Company uses the U.S. dollar as the functional currency for its subsidiaries in Mexico. Because of the increase in the value of the Mexican peso versus the U.S. dollar in 2017, the Mexican tax provision includes decreased tax expense of approximately $4 million, or 0.5 percentage points, on the effective tax rate. In 2016 and 2015, a decline in value of the Mexican peso versus the U.S. dollar increased tax expense by $18 million and $17 million, or 2.4 percentage points and 2.9 percentage points on the effective tax rate, respectively. These impacts are largely associated with foreign currency translation gains and losses for local tax purposes on net U.S. dollar monetary assets held in Mexico for which there is no corresponding gain or loss in pre-tax income.

During 2017, the Company increased the valuation allowance on the net deferred tax assets in Argentina. As a result, the Company recorded a valuation allowance in the amount of $16 million, or 2.0 percentage points on the effective tax rate, compared to $7 million and or 1.0 percentage points on the effective tax rate in 2016.

During 2015, an audit was settled at a National Starch subsidiary related to a pre-acquisition period for which we are indemnified by Akzo Nobel N.V. (“Akzo”). In the third quarter of 2014, the Company recognized increased tax expense to reserve approximately $7 million ($5 million of tax and $2 million of interest) or 1.3 percentage points in the effective tax rate for the audit. In the third quarter of 2015 the reserve was reduced by approximately $4 million ($3 million of tax and $1 million of interest) which resulted in a decrease of 0.7 percentage points in the 2015 effective tax rate. These impacts are included in the rate reconciliation as “Other items, net.” The $7 million of tax expense and $4 million of reduced tax expense were recorded in the tax provision of the subsidiary, while the reimbursement from Akzo under the indemnity is recorded as other income, which results in no impact in net income for all periods.

As of December 31, 2017, for U.S. tax purposes all of the undistributed earnings and profits of our foreign subsidiaries were deemed to be repatriated and subjected to a transition tax. In addition, during 2017 we recorded a provisional liability of $33 million for foreign withholding and state income taxes on certain unremitted earnings from foreign subsidiaries. However, we have not provided for foreign withholding taxes, state income taxes and federal and state taxes on foreign currency gains/losses on distributions of approximately $2.7 billion of unremitted earnings of our foreign subsidiaries; as such amounts are considered permanently reinvested. It is not practicable to estimate the additional income taxes, including applicable foreign withholding taxes that would be due upon the repatriation of these earnings.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, for 2017 and 2016 is as follows:


(in millions)	2017		2016
Balance at January 1	$	86	$	12
Additions for tax positions related to prior years		—		72
Reductions for tax positions related to prior years		—		(9)
Additions based on tax positions related to the current year		12		12
Settlements		(58)		—
Reductions related to a lapse in the statute of limitations		(1)		(1)
Balance at December 31	$	39	$	86

Of the $39 million of unrecognized tax benefits as of December 31, 2017, $15 million represents the amount that, if recognized, could affect the effective tax rate in future periods. The remaining $24 million includes an offset of $23 million for an income tax receivable and $1 million of federal benefit created as part of the U.S.-Canada tax settlement described previously.

The Company accounts for interest and penalties related to income tax matters within the provision for income taxes. The Company has accrued $2 million of interest expense related to the unrecognized tax benefits as of December 31, 2017. The accrued interest expense was $9 million as of December 31, 2016.

The Company is subject to U.S. federal income tax as well as income tax in multiple states and non-U.S. jurisdictions. The U.S. federal tax returns are subject to audit for the years 2014 to 2017. In general, the Company’s foreign subsidiaries remain subject to audit for years 2011 and later.

It is also reasonably possible that the total amount of unrecognized tax benefits including interest and penalties will increase or decrease within 12 months of December 31, 2017. The Company has classified none of the unrecognized tax benefits as current because they are not expected to be resolved within the next 12 months.

Benefit Plans

12 Months Ended

Dec. 31, 2017

Net Periodic Pension and Postretirement Benefit Costs

Benefit plans

NOTE 10 – Benefit Plans

The Company and its subsidiaries sponsor noncontributory defined benefit pension plans (qualified and non-qualified) covering a substantial portion of employees in the U.S. and Canada, and certain employees in other foreign countries. Plans for most salaried employees provide pay-related benefits based on years of service. Plans for hourly employees generally provide benefits based on flat dollar amounts and years of service. The Company’s general funding policy is to make contributions to the plans in amounts that comply with minimum funding requirements and are within the limits of deductibility under current tax regulations. Certain foreign countries allow income tax deductions without regard to contribution levels, and the Company’s policy in those countries is to make contributions required by the terms of the applicable plan.

Included in the Company’s pension obligation are nonqualified supplemental retirement plans for certain key employees. Benefits provided under these plans are only partially funded, and payments to plan participants are made by the Company.

The Company also provides healthcare and/or life insurance benefits for retired employees in the U.S., Canada, and Brazil. Healthcare benefits for retirees outside of the U.S., Canada, and Brazil are generally covered through local government plans.

On December 31, 2016, the Company merged its existing U.S. qualified pension plans into the Ingredion Incorporated Cash Balance Plan for Salaried Employees. The Ingredion Incorporated Cash Balance Plan for Salaried Employees was renamed the Ingredion Pension Plan (“Combined Plan”). Certain U.S. salaried employees are covered by a component of the Combined Plan which provides benefits based on service credits to the participating employees’ accounts of between 3 percent and 10 percent of base salary, bonus, and overtime. On January 1, 2017, the Company amended this component of the Combined Plan to eliminate the service credit percentage increases and freeze them at the January 1, 2017, rate for eligible salaried employees. The amendment also impacted the nonqualified supplemental retirement plans. The plan amendment resulted in a reduction of the benefit obligation of $5 million as of December 31, 2016. The benefit will be recognized over the remaining life of the plan as a prior service cost benefit.

In April 2016, the Company performed a pension remeasurement for one of its pension plans in Canada as a result of lump sum settlement payments made related to the Port Colborne plant sale. This plan settlement resulted in a reduction in the funded status of the Plan by $5 million. The Company recorded a pension charge of $1 million as a result of the settlement.

Pension Obligation and Funded Status: The changes in pension benefit obligations and plan assets during 2017 and 2016, as well as the funded status and the amounts recognized in the Company’s Consolidated Balance Sheets related to the Company’s pension plans at December 31, 2017 and 2016, were as follows:


	U.S. Plans				Non-U.S. Plans
(in millions)	2017		2016		2017		2016
Benefit obligation
At January 1	$	367	$	359	$	223	$	219
Service cost		6		6		3		3
Interest cost		13		14		11		10
Benefits paid		(23)		(16)		(12)		(15)
Actuarial (gain) loss		30		10		7		6
Curtailment/settlement/amendments		—		(6)		—		(5)
Foreign currency translation		—		—		16		5
Benefit obligation at December 31	$	393	$	367	$	248	$	223

Fair value of plan assets
At January 1	$	368	$	354	$	211	$	206
Actual return on plan assets		59		20		17		11
Employer contributions		—		10		5		7
Benefits paid		(23)		(16)		(12)		(15)
Plan settlements		—		—		—		(5)
Foreign currency translation		—		—		14		7
Fair value of plan assets at December 31	$	404	$	368	$	235	$	211

Funded status	$	11	$	1	$	(13)	$	(12)

Amounts recognized in the Consolidated Balance Sheets as of December 31, 2017 and 2016 were as follows:


	U.S. Plans				Non-U.S. Plans
(in millions)	2017		2016		2017		2016
Non-current asset	$	23	$	12	$	37	$	29
Current liabilities		(2)		(1)		(1)		(1)
Non-current liabilities		(10)		(10)		(49)		(40)
Net asset (liability) recognized	$	11	$	1	$	(13)	$	(12)

Amounts recognized in accumulated other comprehensive loss, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost at December 31, 2017 and 2016 were as follows:


	U.S. Plans				Non-U.S. Plans
(in millions)	2017		2016		2017		2016
Net actuarial loss	$	21	$	28	$	55	$	52
Transition obligation		—		—		1		1
Prior service credit		(6)		(6)		(1)		(1)
Net amount recognized	$	15	$	22	$	55	$	52

The decrease in the net amount recognized in accumulated comprehensive loss at December 31, 2017, for the U.S. plans as compared to December 31, 2016, is mainly due to the actual return on assets being greater than the expected return on assets. This is partially offset by the effect of the decrease in discount rates used to measure the Company’s obligations under its U.S. pension plans.

The increase in the net amount recognized in accumulated comprehensive loss at December 31, 2017, for the Non-U.S. plans, as compared to December 31, 2016, is largely due to the effect of the decrease in discount rates used to measure the Company’s obligations under its Non-U.S. pension plans.

The accumulated benefit obligation for all defined benefit pension plans was $603 million and $555 million at December 31, 2017 and 2016, respectively.

Information about plan obligations and assets for plans with an accumulated benefit obligation in excess of plan assets is as follows:


	U.S. Plans				Non-U.S. Plans
(in millions)	2017		2016		2017		2016
Projected benefit obligation	$	12	$	11	$	51	$	43
Accumulated benefit obligation		11		10		41		36
Fair value of plan assets		—		—		2		2

Components of net periodic benefit cost consist of the following for the years ended December 31, 2017, 2016, and 2015:


	Year Ended December 31,
	U.S. Plans						Non-U.S. Plans
(in millions)	2017		2016		2015		2017		2016		2015
Service cost	$	6	$	6	$	8	$	3	$	3	$	4
Interest cost		13		14		14		11		10		12
Expected return on plan assets		(21)		(20)		(24)		(10)		(10)		(13)
Amortization of actuarial loss		—		1		1		2		2		3
Amortization of prior service credit		(1)		—		—		—		—		—
Settlement loss		—		—		(1)		—		1		—
Net periodic benefit cost	$	(3)	$	1	$	(2)	$	6	$	6	$	6

For the U.S. plans, the Company estimates that net periodic benefit cost for 2018 will include approximately $1 million relating to the amortization of the prior service credit included in accumulated other comprehensive loss as of December 31, 2017.

For the non-U.S. plans, the Company estimates that net periodic benefit cost for 2018 will include approximately $2 million relating to the amortization of its accumulated actuarial loss.

Actuarial gains and losses in excess of 10 percent of the greater of the projected benefit obligation or the market-related value of plan assets are recognized as a component of net periodic benefit cost over the average remaining service period of a plan’s active employees for active defined benefit pension plans and over the average remaining life of a plan’s active employees for frozen defined benefit pension plans.

Total amounts recorded in other comprehensive income and net periodic benefit cost was as follows:


(in millions, pre-tax)	U.S. Plans						Non-U.S. Plans
	2017		2016		2015		2017		2016		2015
Net actuarial (gain) loss	$	(7)	$	10	$	—	$	(3)	$	6	$	(18)
Prior service credit		—		(6)		—		—		(1)		—
Amortization of actuarial loss		—		(1)		(1)		(2)		(2)		(3)
Amortization of prior service credit		1		—		—		—		—		—
Settlement gain		—		—		1		—		—		—
Total recorded in other comprehensive income		(6)		3		—		(5)		3		(21)
Net periodic benefit cost		(3)		1		(2)		6		6		6
Total recorded in other comprehensive income and net periodic benefit cost	$	(9)	$	4	$	(2)	$	1	$	9	$	(15)

The following weighted average assumptions were used to determine the Company’s obligations under the pension plans:


	U.S. Plans				Non-U.S. Plans
	2017		2016		2017		2016
Discount rate	3.70	%	4.30	%	4.02	%	4.34	%
Rate of compensation increase	4.42		4.54		3.58		3.62

The following weighted average assumptions were used to determine the Company’s net periodic benefit cost for the pension plans:


	U.S. Plans						Non-U.S. Plans
	2017		2016		2015		2017		2016		2015
Discount rate	4.30	%	4.30	%	4.00	%	4.34	%	4.57	%	4.47	%
Expected long-term return on plan assets	5.75		5.75		7.00		5.29		5.41		6.48
Rate of compensation increase	4.54		4.71		4.31		3.62		3.73		3.76

For 2018 and 2017, the Company has assumed an expected long-term rate of return on assets of 5.30 percent and 5.75 percent for U.S. plans, respectively, and approximately 3.86 percent and 4.76 percent for Canadian plans, respectively. In developing the expected long-term rate of return assumption on plan assets, which consist mainly of U.S. and Canadian equity and debt securities, management evaluated historical rates of return achieved on plan assets and the asset allocation of the plans, input from the Company’s independent actuaries and investment consultants, and historical trends in long-term inflation rates. Projected return estimates made by such consultants are based upon broad equity and bond indices. The decrease in expected Non-U.S. plan long-term rates of return on assets compared to 2015 is due to the change in our investment approach and related asset allocation in the U.S. and Canada that occurred during 2016 to a liability-driven investment approach. As a result, a higher proportion of investments are in interest-sensitive investments (fixed income) as compared to the prior investment strategy for the U.S. and Canada pension plans.

The discount rate reflects a rate of return on high-quality fixed income investments that match the duration of the expected benefit payments. The Company has typically used returns on long-term, high-quality corporate AA bonds as a benchmark in establishing this assumption. In 2016, the Company changed the method used to estimate the service and interest cost components of net periodic benefit cost for certain of our defined benefit pension and postretirement benefit plans. Historically, the Company estimated the service and interest cost components using a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. Beginning in 2016, the Company has elected to use a full yield curve approach in the estimation of these components of benefit cost by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows.

Plan Assets: The Company’s investment policy for its pension plans is to balance risk and return through diversified portfolios of fixed income securities, equity instruments, and short-term investments. Maturities for fixed income securities are managed such that sufficient liquidity exists to meet near-term benefit payment obligations. In 2016, the Company changed its investment approach for the U.S. and Canada plans due to the funded nature of the plans to a liability-driven investment approach. As a result, a higher proportion of investments are in interest rate-sensitive investments (fixed income) as compared to the prior investment strategy. For U.S. pension plans, the weighted average target range allocation of assets was 20-40 percent in equities, 57-79 percent in fixed income and 1-3 percent in cash and other short-term investments. The asset allocation is reviewed regularly and portfolio investments are rebalanced to the targeted allocation when considered appropriate.

The Company’s weighted average asset allocation as of December 31, 2017 and 2016 for U.S. and non-U.S. pension plan assets is as follows:


	U.S. Plans				Non-U.S. Plans
Asset Category	2017		2016		2017		2016
Equity securities	26	%	38	%	39	%	41	%
Debt securities	73		61		46		44
Cash and other	1		1		15		15
Total	100	%	100	%	100	%	100	%

The fair values of the Company’s plan assets by asset category and level in the fair value hierarchy are as follows:


	Fair Value Measurements at December 31, 2017
(in millions)	Level 1		Level 2		Level 3		Total
U.S. Plans:
Equity index:
U.S. (a)	$	—	$	51	$	—	$	51
International (b)		—		55		—		55
Fixed income index:
Long bond (c)		—		273		—		273
Long government bond (d)		—		21		—		21
Cash (e)		—		4		—		4
Total U.S. Plans	$	—	$	404	$	—	$	404
Non-U.S. Plans:
Equity index:
U.S. (a)	$	—	$	12	$	—	$	12
Canada (f)		—		22		—		22
International (b)		—		52		—		52
Real estate (g)		—		5		—		5
Fixed income index:
Intermediate bond (h)		—		25		—		25
Long bond (i)		—		84		—		84
Other (j)		—		24		—		24
Cash (e)		2		9		—		11
Total Non-U.S. Plans	$	2	$	233	$	—	$	235


	Fair Value Measurements at December 31, 2016
(in millions)	Level 1		Level 2		Level 3		Total
U.S. Plans:
Equity index:
U.S. (a)	$	—	$	70	$	—	$	70
International (b)		—		68		—		68
Fixed income index:
Long bond (c)		—		227		—		227
Cash (e)		—		3		—		3
Total U.S. Plans	$	—	$	368	$	—	$	368
Non-U.S. Plans:
Equity index:
U.S. (a)	$	—	$	11	$	—	$	11
Canada (f)		—		21		—		21
International (b)		—		49		—		49
Real estate (g)		—		5		—		5
Fixed income index:
Intermediate bond (h)		—		21		—		21
Long bond (i)		—		72		—		72
Other (j)		—		23		—		23
Cash (e)		1		8		—		9
Total Non-U.S. Plans	$	1	$	210	$	—	$	211

(a)

This category consists of both passively and actively managed equity index funds that track the return of large capitalization U.S. equities.

(b)

This category consists of both passively and actively managed equity index funds that track an index of returns on international developed market equities as well as infrastructure assets.

(c)

This category consists of an actively managed fixed income index fund that invests in a diversified portfolio of fixed-income corporate securities with maturities generally exceeding 10 years.

(d)

This category consists of an actively managed fixed income index fund that invests in a diversified portfolio of fixed-income U.S. treasury securities with maturities generally exceeding 10 years.

(e)

This category represents cash or cash equivalents.

(f)

This category consists of an actively managed equity index fund that tracks against an index of large capitalization Canadian equities.

(g)

This category consists of an actively managed equity index fund that tracks against real estate investment trusts and real estate operating companies.

(h)

This category consists of both passively and actively managed fixed income index funds that track the return of intermediate duration government and investment grade corporate bonds.

(i)

This category consists of both passively and actively managed fixed income index funds that track the return of Canada government bonds, investment grade corporate bonds and hedge funds.

(j)

This category mainly consists of investment products provided by an insurance company that offers returns that are subject to a minimum guarantee and mutual funds.

All significant pension plan assets are held in collective trusts by the Company’s U.S. and non-U.S. plans. The fair values of shares of collective trusts are based upon the net asset values of the funds reported by the fund managers based on quoted market prices of the underlying securities as of the balance sheet date and are considered to be Level 2 fair value measurements. This may produce a fair value measurement that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with those of other market participants, the use of different methodologies could result in different fair value measurements at the reporting date.

In 2017, the Company made cash contributions of $5 million to its non-U.S. pension plans. The Company anticipates that in 2018 it will make cash contributions of $2 million and $3 million to its U.S. and non-U.S. pension plans, respectively. Cash contributions in subsequent years will depend on a number of factors including the performance of plan assets.

The following benefit payments, which reflect anticipated future service, as appropriate, are expected to be made:


(in millions)	U.S. Plans		Non-U.S. Plans
2018	$	21	$	11
2019		20		12
2020		21		12
2021		22		12
2022		23		12
Years 2023 - 2027		124		70

The Company and certain subsidiaries also maintain defined contribution plans. The Company makes matching contributions to these plans that are subject to certain vesting requirements and are based on a percentage of employee contributions. Amounts charged to expense for defined contribution plans totaled $22 million, $20 million, and $17 million in 2017, 2016, and 2015, respectively.

Postretirement Benefit Plans: The Company’s postretirement benefit plans currently are not funded. The information presented below includes plans in the U.S., Brazil, and Canada. The changes in the benefit obligations of the plans during 2017 and 2016, and the amounts recognized in the Company’s Consolidated Balance Sheets at December 31, 2017 and 2016, are as follows:


(in millions)	2017		2016
Accumulated postretirement benefit obligation
At January 1	$	67	$	64
Service cost		1		1
Interest cost		3		2
Employee contributions		1		—
Actuarial loss		2		2
Benefits paid		(4)		(4)
Foreign currency translation		—		2
At December 31		70		67
Fair value of plan assets		—		—
Funded status	$	(70)	$	(67)

Amounts recognized in the Consolidated Balance Sheets consist of:


(in millions)	2017		2016
Current liabilities	$	(4)	$	(4)
Non-current liabilities		(66)		(63)
Net liability recognized	$	(70)	$	(67)

Amounts recognized in accumulated other comprehensive loss (income), excluding tax effects, that have not yet been recognized as components of net periodic benefit cost at December 31, 2017 and 2016 were as follows:


(in millions)	2017		2016
Net actuarial loss	$	11	$	7
Prior service credit		(6)		(8)
Net amount recognized	$	5	$	(1)

Components of net periodic benefit cost consisted of the following for the years ended December 31, 2017, 2016, and 2015:


	Year Ended December 31,
(in millions)	2017		2016		2015
Service cost	$	1	$	1	$	1
Interest cost		3		2		3
Amortization of prior service credit		(3)		(2)		(2)
Net periodic benefit cost	$	1	$	1	$	2

The Company estimates that postretirement benefit expense for these plans for 2018 will include approximately $2 million relating to the amortization of the prior service credit included in accumulated other comprehensive income as of December 31, 2017.

Total amounts recorded in other comprehensive income and net periodic benefit cost was as follows:


(in millions, pre-tax)	2017		2016		2015
Net actuarial loss (gain)	$	2	$	2	$	(2)
Amortization of prior service credit		3		2		2
New prior service credit		—		—		2
Total recorded in other comprehensive income		5		4		2
Net periodic benefit cost		1		1		2
Total recorded in other comprehensive income and net periodic benefit cost	$	6	$	5	$	4

The following weighted average assumptions were used to determine the Company’s obligations under the postretirement plans:


	2017		2016
Discount rate	4.92	%	5.42	%

The following weighted average assumptions were used to determine the Company’s net postretirement benefit cost:


	2017		2016		2015
Discount rate	5.46	%	5.30	%	5.70	%

The discount rate reflects a rate of return on high-quality fixed-income investments that match the duration of expected benefit payments. The Company has typically used returns on long-term, high-quality corporate AA bonds as a benchmark in establishing this assumption.

The healthcare cost trend rates used in valuing the Company’s postretirement benefit obligations are established based upon actual healthcare trends and consultation with actuaries and benefit providers. The following assumptions were used as of December 31, 2017:


	U.S.		Canada		Brazil
2017 increase in per capita cost	6.50	%	5.54	%	8.41	%
Ultimate trend	4.50	%	4.50	%	8.41	%
Year ultimate trend reached	2037		2031		2017

The sensitivities of service cost and interest cost and year-end benefit obligations to changes in healthcare cost trend rates for the postretirement benefit plans as of December 31, 2017, are as follows:


(in millions)	2017
One-percentage point increase in trend rates:
- Increase in service cost and interest cost components	$	1
- Increase in year-end benefit obligations		7

One-percentage point decrease in trend rates:
- Decrease in service cost and interest cost components		1
- Decrease in year-end benefit obligations		6

The following benefit payments, which reflect anticipated future service, as appropriate, are expected to be made under the Company’s postretirement benefit plans:


(in millions)
2018	$	4
2019		4
2020		4
2021		4
2022		5
Years 2023 - 2027		24

Multi-employer Plans: The Company participates in and contributes to one multi-employer benefit plan under the terms of collective bargaining agreements that cover certain union-represented employees and retirees in the U.S. The plan covers medical and dental benefits for active hourly employees and retirees represented by the U.S. Steel Workers Union for certain U.S. locations.

The risks of participating in this multi-employer plan are different from single-employer plans. This plan receives contributions from two or more unrelated employers pursuant to one or more collective bargaining agreements and the assets contributed by one employer may be used to fund the benefits of all employees covered within the plan.

The Company is required to make contributions to this plan as determined by the terms and conditions of the collective bargaining agreements and plan terms. For the years ended December 31, 2017, 2016, and 2015, the Company made regular contributions of $13 million, $14 million, and $12 million, respectively, to this multi-employer plan. The Company cannot currently estimate the amount of multi-employer plan contributions that will be required in 2018 and future years, but these contributions could increase due to healthcare cost trends. The collective bargaining agreements associated with this plan expire during 2018 - 2021.

Supplementary Information

12 Months Ended

Dec. 31, 2017

Supplementary Information

Supplementary Information

NOTE 11 – Supplementary Information

Consolidated Balance Sheets


(in millions)	2017		2016
Accounts receivable, net:
Accounts receivable — trade	$	760	$	751
Accounts receivable — other		209		178
Allowance for doubtful accounts		(8)		(6)
Total accounts receivable, net		961		923
Inventories:
Finished and in process		495		478
Raw materials		278		260
Manufacturing supplies		50		51
Total inventories		823		789
Accrued liabilities:
Compensation-related costs		101		107
Income taxes payable		22		40
Unrecognized tax benefits		—		72
Dividends payable		44		36
Accrued interest		15		19
Taxes payable other than income taxes		37		36
Other		125		122
Total accrued liabilities		344		432
Non-current liabilities:
Employees’ pension, indemnity, and postretirement		121		109
Other		106		49
Total non-current liabilities	$	227	$	158

Consolidated Statements of Income


(in millions)	2017		2016		2015
Other income, net:
Insurance settlement	$	9	$	—	$	—
Value-added tax recovery		6		5		4
Gain from sale of plant		—		—		10
Legal settlement		—		—		(7)
Income tax indemnification expense (a)		—		—		(4)
Other		3		(1)		(2)
Other income, net	$	18	$	4	$	1

(a)

Amount fully offset by $4 million of benefit recorded in the income tax provision for 2015.


(in millions)	2017		2016		2015
Financing costs, net:
Interest expense, net of amounts capitalized (a)	$	79	$	73	$	69
Interest income		(11)		(10)		(14)
Foreign currency transaction losses		5		3		6
Financing costs, net	$	73	$	66	$	61

(a)

Interest capitalized amounted to $4 million, $4 million, and $2 million in 2017, 2016 and 2015, respectively.

Consolidated Statements of Cash Flow


(in millions)	2017		2016		2015
Other non-cash charges to net income:
Share-based compensation expense	$	26	$	28	$	21
Other		13		16		18
Total other non-cash charges to net income	$	39	$	44	$	39


(in millions)	2017		2016		2015
Interest paid	$	77	$	59	$	52
Income taxes paid		289		254		158

Equity

12 Months Ended

Dec. 31, 2017

Equity

Equity

NOTE 12 – Equity

Preferred stock: The Company has authorized 25 million shares of $0.01 par value preferred stock, none of which were issued or outstanding at December 31, 2017 and 2016.

Treasury stock: On December 12, 2014, the Board of Directors authorized a new stock repurchase program permitting the Company to purchase up to 5 million of its outstanding common shares from January 1, 2015, through December 12, 2019. The Company’s previously authorized stock repurchase program permitting the purchase of up to 4 million shares has been fully utilized. The parameters of the Company’s stock repurchase program are not established solely with reference to the dilutive impact of shares issued under the Company’s stock incentive plan. However, the Company expects that, over time, share repurchases will offset the dilutive impact of shares issued under the stock incentive plan.

In 2017, the Company repurchased 1 million common shares in open market transactions at a cost of $123 million. In 2016, the Company had no repurchases of common shares in open market transactions.

Set forth below is a reconciliation of common stock share activity for the years ended December 31, 2017, 2016, and 2015:


(Shares of common stock, in thousands)	Issued	Held in Treasury	Outstanding
Balance at December 31, 2014	77,811	6,489	71,322
Issuance of restricted stock units as compensation	—	(102)	102
Performance shares and other share-based awards	—	(75)	75
Stock options exercised	—	(556)	556
Purchase/acquisition of treasury stock	—	439	(439)
Balance at December 31, 2015	77,811	6,195	71,616
Issuance of restricted stock units as compensation	—	(94)	94
Performance shares and other share-based awards	—	(70)	70
Stock options exercised	—	(636)	636
Purchase/acquisition of treasury stock	—	2	(2)
Balance at December 31, 2016	77,811	5,397	72,414
Issuance of restricted stock units as compensation	—	(103)	103
Performance shares and other share-based awards	—	(75)	75
Stock options exercised	—	(443)	443
Purchase/acquisition of treasury stock	—	1,039	(1,039)
Balance at December 31, 2017	77,811	5,815	71,996

Share-based payments: The following table summarizes the components of the Company’s share-based compensation expense for the last three years:


(in millions)	2017		2016		2015
Stock options:
Pre-tax compensation expense	$	7	$	9	$	7
Income tax benefit		(2)		(3)		(3)
Stock option expense, net of income taxes		5		6		4

RSUs:
Pre-tax compensation expense		13		12		9
Income tax benefit		(4)		(5)		(3)
RSUs, net of income taxes		9		7		6

Performance shares and other share-based awards:
Pre-tax compensation expense		6		7		5
Income tax benefit		(2)		(3)		(2)
Performance shares and other share-based compensation expense, net of income taxes		4		4		3

Total share-based compensation:
Pre-tax compensation expense		26		28		21
Income tax benefit		(8)		(11)		(8)
Total share-based compensation expense, net of income taxes	$	18	$	17	$	13

The Company has a stock incentive plan (“SIP”) administered by the compensation committee of its Board of Directors that provides for the granting of stock options, restricted stock, restricted stock units, and other share-based awards to certain key employees. A maximum of 8 million shares were originally authorized for awards under the SIP. As of December 31, 2017, 3.7 million shares were available for future grants under the SIP. Shares covered by awards that expire, terminate or lapse will again be available for the grant of awards under the SIP.

Stock Options: Under the Company’s SIP, stock options are granted at exercise prices that equal the market value of the underlying common stock on the date of grant. The options have a 10-year term and are exercisable upon vesting, which occurs over a three-year period at the anniversary dates of the date of grant. Compensation expense is generally recognized on a straight-line basis for all awards over the employee’s vesting period or over a one-year required service period for certain retirement eligible executive level employees. The Company estimates a forfeiture rate at the time of grant and updates the estimate throughout the vesting of the stock options within the amount of compensation costs recognized in each period.

The Company granted non-qualified options to purchase 278 thousand shares and 329 thousand shares for the years ended December 31, 2017 and 2016, respectively. The fair value of each option grant was estimated using the Black-Scholes option-pricing model with the following assumptions:



	For the Year Ended December 31,
	2017		2016		2015
Expected life (in years)	5.5		5.5		5.5
Risk-free interest rate	1.9	%	1.4	%	1.4	%
Expected volatility	22.5	%	23.4	%	25.2	%
Expected dividend yield	1.7	%	1.8	%	2.0	%

The expected life of options represents the weighted average period of time that options granted are expected to be outstanding giving consideration to vesting schedules and the Company’s historical exercise patterns. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the grant date for the period corresponding to the expected life of the options. Expected volatility is based on historical volatilities of the Company’s common stock. Dividend yields are based on current dividend payments.

A summary of stock option transactions for the year follows:


		Weighted
		Average		Average	Aggregate
	Number of	Exercise		Remaining	Intrinsic
	Options	Price per		Contractual	Value
	(in thousands)	Share		Term (Years)	(in millions)
Outstanding as of December 31, 2016	2,281	$	61.39	5.93	$	145
Granted	278		117.65
Exercised	(443)		46.16
Cancelled	(21)		87.50
Outstanding as of December 31, 2017	2,095	$	71.81	5.87	$	142
Exercisable as of December 31, 2017	1,527	$	59.14	5.24	$	123

For the years ended December 31, 2017, 2016, and 2015, cash received from the exercise of stock options was $20 million, $29 million, and $21 million, respectively. As of December 31, 2017, the unrecognized compensation cost related to non-vested stock options totaled $3 million, which is expected to be amortized over the weighted-average period of approximately 1.5 years.

Additional information pertaining to stock option activity is as follows:



	Year Ended December 31,
(dollars in millions, except per share)	2017		2016		2015
Weighted average grant date fair value of stock options granted (per share)	$	23.90	$	18.73	$	16.04
Total intrinsic value of stock options exercised		35		46		27

Restricted Stock Units: The Company has granted restricted stock units (“RSUs”) to certain key employees. The RSUs are subject to cliff vesting, generally after three years provided the employee remains in the service of the Company. Compensation expense is generally recognized on a straight-line basis for all awards over the employee’s vesting period or over a one-year required service period for certain retirement eligible executive level employees. The Company estimates a forfeiture rate at the time of grant and updates the estimate throughout the vesting of the RSUs within the amount of compensation costs recognized in each period. The fair value of the RSUs is determined based upon the number of shares granted and the quoted market price of the Company’s common stock at the date of the grant.

The following table summarizes RSU activity for the year:


		Weighted
	Number of	Average
	Restricted	Fair Value
(shares in thousands)	Shares	per Share
Non-vested at December 31, 2016	429	$	81.04
Granted	125		119.54
Vested	(148)		65.03
Cancelled	(19)		95.17
Non-vested at December 31, 2017	387	$	100.13

The total fair value of RSUs that vested in 2017, 2016, and 2015 was $18 million, $15 million, and $13 million, respectively.

At December 31, 2017, the total remaining unrecognized compensation cost related to RSUs was $13 million which will be amortized on a weighted-average basis over approximately 1.7 years. Recognized compensation cost related to unvested RSUs is included in share-based payments subject to redemption in the Consolidated Balance Sheets and totaled $25 million and $21 million at December 31, 2017 and 2016, respectively.

Performance Shares: The Company has a long-term incentive plan for senior management in the form of performance shares. The ultimate payments for performance shares awarded and vested will be based solely on the Company’s stock performance as compared to the stock performance of its peer group. The number of shares that ultimately vest can range from zero to 200 percent of the awarded grant depending on the Company’s stock performance as compared to the stock performance of the peer group. The share award vesting will be calculated at the end of the three-year period and are subject to approval by management and the Compensation Committee. Compensation expense is based on the fair value of the performance shares at the grant date, established using a Monte Carlo simulation model. The total compensation expense for these awards is amortized over a three-year graded vesting schedule.

The Company awarded 38 thousand, 44 thousand, and 47 thousand performance shares in 2017, 2016, and 2015, respectively. The weighted average fair value of the shares granted during 2017, 2016, and 2015 was $114.08, $131.34, and $77.54, respectively.

The 2014 performance share award vested in February 2017, achieving a 200 percent pay out of the grant, or 115 thousand total vested shares. As of December 31, 2017, the performance awards granted in 2017, 2016, and 2015 are estimated to pay out at 127 percent, 175 percent, and 200 percent, respectively. There were three thousand shares cancelled during the year ended December 31, 2017.

As of December 31, 2017, the unrecognized compensation cost relating to these plans was $3 million, which will be amortized over the remaining requisite service periods of 1.7 years. Recognized compensation cost related to these unvested awards is included in share-based payments subject to redemption in the Consolidated Balance Sheets and totaled $11 million and $9 million at December 31, 2017 and 2016, respectively.

Other share-based awards under the SIP: Under the compensation agreement with the Board of Directors, $110,000 of a director’s annual retainer and 50 percent of the additional retainers paid to the Lead Director and the Chairmen of committees of the Board of Directors are awarded in shares of common stock or restricted units based on each director’s elections to receive his or her compensation or a portion thereof in the form of restricted units. These restricted units vest immediately, and the director is allowed to either receive these shares immediately or defer them. Deferred shares cannot be transferred until a date not less than six months after the director’s termination of service from the board at which time the restricted units will be settled by delivering shares of common stock. The compensation expense relating to this plan included in the Consolidated Statements of Income was approximately $1 million in 2017, 2016, and 2015. At December 31, 2017, there were approximately 182 thousand restricted units outstanding under this plan at a carrying value of approximately $11 million.

Accumulated Other Comprehensive Loss: A summary of accumulated other comprehensive income (loss) for the years ended December 31, 2015, 2016 and 2017 is presented below:


			Deferred				Unrealized		Accumulated
	Cumulative		(Loss) Gain		Pension and		(Loss)		Other
	Translation		on Hedging		Postretirement		Gain on		Comprehensive
(in millions)	Adjustment		Activities		Adjustment		Investment		(Loss) Gain
Balance, December 31, 2014	$	(701)	$	(19)	$	(61)	$	(1)	$	(782)
Other comprehensive (loss) income before reclassification adjustments		(324)		(61)		18		—		(367)
Amount reclassified from accumulated OCI		—		46		1		—		47
Tax benefit (provision)		—		5		(5)		—		—
Net other comprehensive (loss) income		(324)		(10)		14		—		(320)
Balance, December 31, 2015		(1,025)		(29)		(47)		(1)		(1,102)
Other comprehensive income (loss) before reclassification adjustments		17		(17)		(14)		1		(13)
Amount reclassified from accumulated OCI		—		49		1		—		50
Tax (provision) benefit		—		(10)		4		—		(6)
Net other comprehensive income (loss)		17		22		(9)		1		31
Balance, December 31, 2016		(1,008)		(7)		(56)		—		(1,071)
Other comprehensive income (loss) before reclassification adjustments		57		(16)		8		3		52
Amount reclassified from accumulated OCI		—		6		(2)		—		4
Tax benefit (provision)		—		4		(1)		(1)		2
Net other comprehensive income (loss)		57		(6)		5		2		58
Balance, December 31, 2017	$	(951)	$	(13)	$	(51)	$	2	$	(1,013)

The following table provides detail pertaining to reclassifications from AOCI into net income for the periods presented:


							Affected Line Item in
	Amount Reclassified from AOCI						Consolidated
(in millions)	2017		2016		2015		Statements of Income
Gains (losses) on cash flow hedges:
Commodity contracts	$	(5)	$	(45)	$	(43)	Cost of sales
Foreign currency contracts		1		(2)		—	Net sales/Cost of sales
Interest rate contracts		(2)		(2)		(3)	Financing costs, net
Gains (losses) related to pension and other postretirement obligations		2		(1)		(1)	(a)
Total before-tax reclassifications		(4)		(50)		(47)
Tax benefit		1		16		14
Total after-tax reclassifications	$	(3)	$	(34)	$	(33)

(a)

This component is included in the computation of net periodic benefit cost and affects both cost of sales and operating expenses on the Consolidated Statements of Income.

The following table provides the computation of basic and diluted earnings per common share (“EPS”) for the periods presented.


	Year ended December 31,
	2017			2016			2015
	Net Income	Weighted	Per	Net Income	Weighted	Per	Net Income	Weighted	Per
	Available	Average	Share	Available	Average	Share	Available	Average	Share
(in millions, except per share amounts)	to Ingredion	Shares	Amount	to Ingredion	Shares	Amount	to Ingredion	Shares	Amount

Basic EPS	$ 519	72.0	$ 7.21	$ 485	72.3	$ 6.70	$ 402	71.6	$ 5.62

Effect of Dilutive Securities:
Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards		1.5			1.8			1.4

Diluted EPS	$ 519	73.5	$ 7.06	$ 485	74.1	$ 6.55	$ 402	73.0	$ 5.51

Segment Information

12 Months Ended

Dec. 31, 2017

Segment Information

Segment Information

NOTE 13 – Segment Information

The Company is principally engaged in the production and sale of starches and sweeteners for a wide range of industries, and is managed geographically on a regional basis. The Company’s operations are classified into four reportable business segments: North America, South America, Asia Pacific, and Europe, Middle East, and Africa (“EMEA”). Its North America segment includes businesses in the U.S., Canada, and Mexico. The Company’s South America segment includes businesses in Brazil, Colombia, Ecuador, and the Southern Cone of South America, which includes Argentina, Chile, Peru, and Uruguay. Its Asia Pacific segment includes businesses in South Korea, Thailand, Malaysia, China, Japan, Indonesia, the Philippines, Singapore, India, Australia, and New Zealand. The Company’s EMEA segment includes businesses in the United Kingdom, Germany, South Africa, Pakistan, and Kenya. The Company does not aggregate its operating segments when determining its reportable segments. Net sales by product are not presented because to do so would be impracticable.


(in millions)	2017		2016		2015
Net sales to unaffiliated customers:
North America	$	3,529	$	3,447	$	3,345
South America		1,007		1,010		1,013
Asia Pacific		740		709		733
EMEA		556		538		530
Total	$	5,832	$	5,704	$	5,621

Operating income:
North America	$	661	$	610	$	479
South America		80		89		101
Asia Pacific		112		111		107
EMEA		113		106		93
Corporate (a)		(82)		(86)		(75)
Subtotal		884		830		705
Restructuring/impairment charges (b)		(38)		(19)		(28)
Acquisition/integration costs		(4)		(3)		(10)
Charge for fair value markup of acquired inventory		(9)		—		(10)
Insurance settlement		9		—		—
Litigation settlement		—		—		(7)
Gain from land sale		—		—		10
Total operating income		842		808		660
Financing costs, net		73		66		61
Income before income taxes	$	769	$	742	$	599

(a)

For 2015, includes $4 million of expense relating to a tax indemnification agreement with offsetting income of $4 million recorded in the provision for income taxes (see Note 9).

(b)

For 2017, includes $17 million of employee-related severance and other costs associated with the restructuring in Argentina, $13 million of restructuring of related to our leaf extraction process in Brazil, $6 million of employee-related severance and other costs associated with the Finance Transformation initiative, and $2 million of other restructuring charges including employee-related severance costs in North America and a refinement of estimates for prior year restructuring activities. For 2016, includes $11 million of employee-related severance and other costs associated with the execution of IT outsourcing contracts, $6 million of employee-related severance costs associated with our optimization initiative in North America and South America, and $2 million of costs attributable to the Port Colborne plant sale. For 2015, includes $12 million of charges for impaired assets and restructuring costs in Brazil, $12 million of restructuring costs associated with the Penford acquisition, and $4 million of restructuring costs in Canada.


	As of December 31,
(in millions)	2017		2016
Total assets:
North America (a)	$	3,967	$	3,796
South America		812		809
Asia Pacific		774		697
EMEA		527		480
Total	$	6,080	$	5,782

(a)

For purposes of presentation, North America includes Corporate assets.


(in millions)	2017		2016		2015
Depreciation and amortization:
North America (a)	$	140	$	130	$	123
South America		27		26		30
Asia Pacific		25		23		23
EMEA		17		17		18
Total	$	209	$	196	$	194
Mechanical stores expense (b):
North America (a)	$	37	$	37	$	36
South America		12		12		13
Asia Pacific		5		5		5
EMEA		3		3		3
Total	$	57	$	57	$	57
Capital expenditures and mechanical stores purchases:
North America (a)	$	180	$	167	$	158
South America		50		56		61
Asia Pacific		51		41		36
EMEA		33		20		25
Total	$	314	$	284	$	280

(a)

For purposes of presentation, North America includes Corporate activities of depreciation, amortization, capital expenditures, and mechanical stores purchase, respectively.

(a)

Represents spare parts used in the production process. Such spare parts are recorded in PP&E as part of machinery and equipment until they are utilized in the manufacturing process and expensed as a period cost.

The following table presents net sales to unaffiliated customers by country of origin for the last three years:


	Net Sales
(in millions)	2017		2016		2015
U.S.	$	2,191	$	2,117	$	1,983
Mexico		952		955		945
Brazil		519		522		452
Canada		385		375		417
Korea		275		266		276
Others		1,510		1,469		1,548
Total	$	5,832	$	5,704	$	5,621

The following table presents long-lived assets (excluding intangible assets and deferred income taxes) by country at December 31:


	Long-lived Assets
(in millions)	2017		2016
U.S.	$	977	$	955
Mexico		306		303
Brazil		235		245
Canada		179		147
Thailand		137		119
Germany		133		106
Korea		109		84
Others		284		278
Total	$	2,360	$	2,237

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2017
Commitments and Contingencies
Commitments and Contingencies	NOTE 14 – Commitments and Contingencies The Company is a party to a large number of labor claims relating to our Brazilian operations. The Company has reserved an aggregate of approximately $5 million as of December 31, 2017, in respect of these claims. These labor claims primarily relate to dismissals, severance, health and safety, work schedules, and salary adjustments. The Company is currently subject to various other claims and suits arising in the ordinary course of business, including certain environmental proceedings and other commercial claims. The Company also routinely receives inquiries from regulators and other government authorities relating to various aspects of its business, including with respect to compliance with laws and regulations relating to the environment, and at any given time, the Company has matters at various stages of resolution with the applicable governmental authorities. The outcomes of these matters are not within the Company’s complete control and may not be known for prolonged periods of time. The Company does not believe that the results of currently known legal proceedings and inquires, even if unfavorable to the Company, will be material to the Company. There can be no assurance, however, that such claims, suits or investigations or those arising in the future, whether taken individually or in the aggregate, will not have a material adverse effect on the Company’s financial condition or results of operations.

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Data (Unaudited)

Quarterly Financial Data (Unaudited)

Summarized quarterly financial data is as follows:


(in millions, except per share amounts)	1st QTR (a)		2nd QTR (b)		3rd QTR (c)		4th QTR (d)
2017
Net sales before shipping and handling costs	$	1,537	$	1,542	$	1,574	$	1,527
Less: shipping and handling costs		84		85		89		90
Net sales		1,453		1,457		1,485		1,437
Gross profit		352		373		388		360
Net income attributable to Ingredion		124		130		166		99
Basic earnings per common share of Ingredion		1.72		1.81		2.31		1.37
Diluted earnings per common share of Ingredion		1.68		1.78		2.26		1.35
Per share dividends declared	$	0.50	$	0.50	$	0.60	$	0.60


(in millions, except per share amounts)	1st QTR (e)		2nd QTR (f)		3rd QTR (g)		4th QTR (h)
2016
Net sales before shipping and handling costs	$	1,434	$	1,533	$	1,569	$	1,484
Less: shipping and handling costs		74		78		80		85
Net sales		1,360		1,455		1,489		1,399
Gross profit		339		355		369		339
Net income attributable to Ingredion		130		117		143		94
Basic earnings per common share of Ingredion		1.81		1.62		1.98		1.29
Diluted earnings per common share of Ingredion		1.77		1.58		1.93		1.26
Per share dividends declared	$	0.45	$	0.45	$	0.50	$	0.50

(a)

In the first quarter of 2017, the Company recorded $11 million in after-tax, net restructuring costs, $3 million in after-tax non-cash inventory charges related to the TIC acquisition, and $1 million in after-tax acquisition and integration costs.

(b)

In the second quarter of 2017, the Company recorded $5 million in after-tax, net restructuring costs and $3 million in after-tax, non-cash inventory charges.

(c)

In the third quarter of 2017, the Company recorded a $10 million gain related to an income tax settlement, $5 million in after-tax, net restructuring costs, and $1 million in after-tax acquisition and integration costs.

(d)

In the fourth quarter of 2017, the Company recorded a $23 million after-tax charge related to the enactment of the TCJA, $10 million in after-tax, net restructuring costs, a $6 million after-tax gain related to insurance settlement, and $1 million in after-tax acquisition and integration costs.

(e)

In the first quarter of 2016, the Company recorded $1 million in after-tax acquisition and integration costs.

(f)

In the second quarter of 2016, the Company recorded $10 million in after-tax, net restructuring costs.

(g)

In the third quarter of 2016, the Company recorded $2 million in after-tax, net restructuring costs.

(h)

In the fourth quarter of 2016, the Company recorded a $27 million charge related to an income tax settlement, $2 million in after-tax, net restructuring charges, and $1 million in after-tax acquisition and integration costs.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Summary of Significant Accounting Policies

Basis of presentation

Cash and cash equivalents

Cash and cash equivalents: Cash equivalents consist of all instruments purchased with an original maturity of three months or less, and which have virtually no risk of loss in value.

Accounts receivable, net

Inventories

Inventories: Inventories are stated at the lower of cost or net realizable value. Costs are predominantly determined using the weighted average method.

Investments

Leases

Property, plant and equipment and depreciation

Goodwill and other intangible assets


	North			South		Asia
(in millions)	America			America		Pacific		EMEA		Total
Balance at December 31, 2015	$	424		$	22	$	86	$	69	$	601
Acquisitions		186			—		—		—		186
Currency translation		—			4		(1)		(6)		(3)
Balance at December 31, 2016		610			26		85		63		784
Acquisitions		(10)	(a)		—		15		—		5
Currency translation		—			—		7		7		14
Balance at December 31, 2017	$	600		$	26	$	107	$	70	$	803

(a)

Related to TIC Gums Incorporated (“TIC Gums”) purchase price accounting adjustments

The original carrying value of goodwill by reportable business segment and accumulated impairment charges by reportable business segment at December 31, 2017 and 2016 were as follows:


	North		South		Asia
	America		America		Pacific		EMEA		Total
Goodwill before impairment charges	$	611	$	59	$	206	$	63	$	939
Accumulated impairment charges		(1)		(33)		(121)		—		(155)
Balance at December 31, 2016		610		26		85		63		784

Goodwill before impairment charges		601		59		228		70		958
Accumulated impairment charges		(1)		(33)		(121)		—		(155)
Balance at December 31, 2017	$	600	$	26	$	107	$	70	$	803

The following table summarizes the Company’s other intangible assets for the periods presented:


	As of December 31, 2017
(in millions)	Gross		Accumulated Amortization		Net		Weighted Average Useful Life (years)
Trademarks/tradenames (indefinite-lived)	$	178	$	—	$	178	—
Customer relationships		329		(62)		267	20
Technology		103		(68)		35	9
Other		22		(9)		13	16
Total other intangible assets	$	632	$	(139)	$	493	18

	As of December 31, 2016
(in millions)	Gross		Accumulated Amortization		Net		Weighted Average Useful Life (years)
Trademarks/tradenames (indefinite-lived)	$	143	$	—	$	143	—
Customer relationships		227		(42)		185	20
Technology		100		(57)		43	10
TIC Gums intangible assets (preliminary)		117		—		117	Various
Other		21		(7)		14	16
Total other intangible assets	$	608	$	(106)	$	502	17


(in millions)
Year	Amortization Expense
2018	$	29
2019		29
2020		27
2021		19
2022		18
Balance thereafter		193

Revenue recognition

Hedging instruments

Stock-based compensation

Earnings per common share

Risks and uncertainties

Recently adopted accounting standards

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Significant Accounting Policies

Schedule of carrying amount of goodwill by geographic segment

The carrying value of goodwill by reportable business segment at December 31, 2017 and 2016 was as follows:


	North			South		Asia
(in millions)	America			America		Pacific		EMEA		Total
Balance at December 31, 2015	$	424		$	22	$	86	$	69	$	601
Acquisitions		186			—		—		—		186
Currency translation		—			4		(1)		(6)		(3)
Balance at December 31, 2016		610			26		85		63		784
Acquisitions		(10)	(a)		—		15		—		5
Currency translation		—			—		7		7		14
Balance at December 31, 2017	$	600		$	26	$	107	$	70	$	803

(a)

Related to TIC Gums Incorporated (“TIC Gums”) purchase price accounting adjustments

The original carrying value of goodwill by reportable business segment and accumulated impairment charges by reportable business segment at December 31, 2017 and 2016 were as follows:


	North		South		Asia
	America		America		Pacific		EMEA		Total
Goodwill before impairment charges	$	611	$	59	$	206	$	63	$	939
Accumulated impairment charges		(1)		(33)		(121)		—		(155)
Balance at December 31, 2016		610		26		85		63		784

Goodwill before impairment charges		601		59		228		70		958
Accumulated impairment charges		(1)		(33)		(121)		—		(155)
Balance at December 31, 2017	$	600	$	26	$	107	$	70	$	803

Schedule of intangible assets


	As of December 31, 2017
(in millions)	Gross		Accumulated Amortization		Net		Weighted Average Useful Life (years)
Trademarks/tradenames (indefinite-lived)	$	178	$	—	$	178	—
Customer relationships		329		(62)		267	20
Technology		103		(68)		35	9
Other		22		(9)		13	16
Total other intangible assets	$	632	$	(139)	$	493	18

	As of December 31, 2016
(in millions)	Gross		Accumulated Amortization		Net		Weighted Average Useful Life (years)
Trademarks/tradenames (indefinite-lived)	$	143	$	—	$	143	—
Customer relationships		227		(42)		185	20
Technology		100		(57)		43	10
TIC Gums intangible assets (preliminary)		117		—		117	Various
Other		21		(7)		14	16
Total other intangible assets	$	608	$	(106)	$	502	17

Schedule of amortization expense related to intangible assets


(in millions)
Year	Amortization Expense
2018	$	29
2019		29
2020		27
2021		19
2022		18
Balance thereafter		193

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2017

Acquisitions

Summary of final purchase price allocations for TIC Gums




(in millions)		TIC Gums		Kerr
Working capital (excluding cash)	$	49	$	37
Property, plant and equipment		37		8
Other assets		—		1
Identifiable intangible assets		133		29
Goodwill		177		27
Total purchase price, net of cash	$	396	$	102

Schedule of fair values, valuation techniques and estimated remaining useful life of acquired intangible assets

The following table presents the fair values, valuation techniques, and estimated remaining useful life at the acquisition date for these Level 3 measurements (dollars in millions):


				Estimated
TIC Gums	Fair Value		Valuation Technique	Useful Life
Customer relationships	$	94	Multi-period excess earnings method	20 years
Trade names		35	Relief-from-royalty method	Indefinite
Proprietary technology		4	Relief-from-royalty method	8 years


				Estimated
Kerr	Fair Value		Valuation Technique	Useful Life
Customer relationships	$	24	Multi-period excess earnings method	15 years
Trade names		4	Relief-from-royalty method	11 years
Non-competition agreements		1	Income approach method	3 years

Impairment and Restructuring Charges (Tables)

12 Months Ended

Dec. 31, 2017

Impairment and Restructuring Charges

Summary of restructuring reserve

A summary of the Company’s severance accrual at December 31, 2017, is as follows (in millions):


Balance in severance accrual as of December 31, 2016	$	7
Restructuring charge for employee-related severance costs:
Argentina		15
North America Finance Transformation		3
Other		3
Prior year restructuring activities		(2)
Payments made to terminated employees		(15)
Balance in severance accrual as of December 31, 2017	$	11

Financial Instruments, Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2017

Financial Instruments, Derivatives and Hedging Activities

Schedule of location and amount of assets and liabilities reported in balance sheet


	Fair Value of Derivative Instruments as of December 31, 2017
Derivatives Designated as Hedging Instruments (in millions):	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity and foreign currency	Accounts receivable, net	$	11	Accounts payable and accrued liabilities	$	23
Commodity, foreign currency, and interest rate contracts	Other assets		3	Non-current liabilities		8
Total		$	14		$	31


	Fair Value of Derivative Instruments as of December 31, 2016
Derivatives Designated as Hedging Instruments (in millions):	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity and foreign currency	Accounts receivable, net	$	31	Accounts payable and accrued liabilities	$	25
Commodity, foreign currency, and interest rate contracts	Other assets		8	Non-current liabilities		2
		$	39		$	27

Schedule of amount of gains and losses recognized in OCI and location and amount of gains and losses reported in income statement

Additional information relating to the Company’s derivative instruments is presented below (in millions, pre-tax):


	Year ended December 31, 2017
Derivatives in Cash Flow Hedging Relationships	Amount of Gains (Losses) Recognized in OCI on Derivatives		Location of Gains (Losses) Reclassified from AOCI into Income	Amount of Gains (Losses) Reclassified from AOCI into Income
Commodity contracts	$	(22)	Cost of sales	$	(5)
Foreign currency contracts		6	Net sales/Cost of sales		1
Interest rate contracts		—	Financing costs, net		(2)
Total	$	(16)		$	(6)


	Year ended December 31, 2016
Derivatives in Cash Flow Hedging Relationships	Amount of Gains (Losses) Recognized in OCI on Derivatives		Location of Gains (Losses) Reclassified from AOCI into Income	Amount of Gains (Losses) Reclassified from AOCI into Income
Commodity contracts	$	(15)	Cost of sales	$	(45)
Foreign currency contracts		(2)	Net sales/Cost of sales		(2)
Interest rate contracts		—	Financing costs, net		(2)
Total	$	(17)		$	(49)


	Year ended December 31, 2015
Derivatives in Cash Flow Hedging Relationships	Amount of Gains (Losses) Recognized in OCI on Derivatives		Location of Gains (Losses) Reclassified from AOCI into Income	Amount of Gains (Losses) Reclassified from AOCI into Income
Commodity contracts	$	(61)	Cost of sales	$	(43)
Foreign currency contracts		—	Net sales/Cost of sales		—
Interest rate contracts		—	Financing costs, net		(3)
Total	$	(61)		$	(46)

Schedule of fair value of financial instruments and derivatives


	As of December 31, 2017								As of December 31, 2016
(in millions)	Total		Level 1 (a)		Level 2 (b)		Level 3 (c)		Total		Level 1 (a)		Level 2 (b)		Level 3 (c)
Available for sale securities	$	10	$	10	$	—	$	—	$	7	$	7	$	—	$	—
Derivative assets		14		3		11		—		39		6		33		—
Derivative liabilities		31		11		20		—		27		11		16		—
Long-term debt		1,845		—		1,845		—		1,929		—		1,929		—

(a)

Level 1 inputs consist of quoted prices (unadjusted) in active markets for identical assets or liabilities.

(b)

(c)

Schedule of carrying amounts and fair values of long-term debt


	December 31, 2017				December 31, 2016
	Carrying		Fair		Carrying		Fair
(in millions)	Amount		Value		Amount		Value
3.2% senior notes due October 1, 2026	$	496	$	492	$	496	$	482
4.625% senior notes due November 1, 2020		398		421		398		428
6.625% senior notes due April 15, 2037		254		325		254		299
5.62% senior notes due March 25, 2020		200		212		200		217
1.8% senior notes due September 25, 2017		—		—		299		301
6.0% senior notes due April 15, 2017		—		—		200		202
Term loan credit agreement due April 25, 2019		395		395		—		—
Revolving credit facility		—		—		—		—
Fair value adjustment related to hedged fixed rate debt instrument		1		—		3		—
Total long-term debt	$	1,744	$	1,845	$	1,850	$	1,929

Financing Arrangements (Tables)

12 Months Ended

Dec. 31, 2017

Debt

Schedule of components of long-term debt



(in millions)		2017		2016
3.2% senior notes due October 1, 2026	$	496	$	496
4.625% senior notes due November 1, 2020		398		398
6.625% senior notes due April 15, 2037		254		254
5.62% senior notes due March 25, 2020		200		200
1.8% senior notes due September 25, 2017		—		299
6.0% senior notes due April 15, 2017		—		200
Term loan credit agreement due April 25, 2019		395		—
Revolving credit facility		—		—
Fair value adjustment related to hedged fixed rate debt instruments		1		3
Long-term debt		1,744		1,850
Short-term borrowings		120		106
Total debt	$	1,864	$	1,956

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

Leases (Tables)

12 Months Ended

Dec. 31, 2017

Leases

Schedule of minimum lease payments due on leases


Year (in millions)	Minimum Lease Payments
2018	$	45
2019		40
2020		31
2021		25
2022		20
Balance thereafter		36

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Taxes

Schedule of income before income taxes and provision for income taxes


(in millions)	2017		2016		2015
Income before income taxes:
U.S.	$	226	$	176	$	109
Foreign		543		566		490
Total income before income taxes		769		742		599
Provision for income taxes:
Current tax (benefit) expense:
U.S. federal		(13)		95		26
State and local		4		8		3
Foreign		179		148		164
Total current tax expense		170		251		193
Deferred tax expense (benefit):
U.S. federal		77		13		(8)
State and local		4		1		(1)
Foreign		(14)		(19)		3
Total deferred tax expense (benefit)		67		(5)		(6)
Total provision for income taxes	$	237	$	246	$	187

Schedule of tax effects of temporary differences between financial reporting basis and tax basis of assets and liabilities


(in millions)	2017		2016
Deferred tax assets attributable to:
Employee benefit accruals	$	20	$	39
Pensions and postretirement plans		20		30
Derivative contracts		5		3
Net operating loss carryforwards		32		18
Foreign tax credit carryforwards		—		4
Other		—		24
Gross deferred tax assets		77		118
Valuation allowances		(34)		(21)
Net deferred tax assets		43		97
Deferred tax liabilities attributable to:
Property, plant and equipment		185		206
Identified intangibles		37		55
Other		11		—
Gross deferred tax liabilities		233		261
Net deferred tax liabilities	$	190	$	164

Schedule of reconciliation of US federal statutory tax rate to effective tax rate


	2017		2016		2015
Provision for tax at U.S. statutory rate	35.0	%	35.0	%	35.0	%
Tax rate difference on foreign income	(5.6)		(5.5)		(5.8)
State and local taxes, net	0.7		0.3		0.3
Tax impact of fluctuations in Mexican peso to U.S. dollar	(0.5)		2.4		2.9
Net impact of U.S. foreign tax credits	0.3		(2.3)		0.9
Net impact of U.S.-Canada tax settlement	(1.3)		3.2		—
Net impact of valuation allowance in Argentina	2.0		1.0		—
Net impact of transition tax	2.7		—		—
Net impact of U.S. deferred tax remeasurement	(4.9)		—		—
Net impact of provision for taxes on unremitted earnings	4.3		0.5		—
Other items, net	(1.9)		(1.5)		(2.1)
Provision at effective tax rate	30.8	%	33.1	%	31.2	%

Schedule of impact of the TCJA on 2017 income tax expense


(in millions)
One-time transition tax	$	21
Remeasurement of deferred tax assets and liabilities		(38)
Net impact of provision for taxes on unremitted earnings		33
Other items, net		7
Net impact of the TCJA on our 2017 income tax expense	$	23

Schedule of reconciliation of beginning and ending amount of unrecognized tax benefits, excluding interest and penalties


(in millions)	2017		2016
Balance at January 1	$	86	$	12
Additions for tax positions related to prior years		—		72
Reductions for tax positions related to prior years		—		(9)
Additions based on tax positions related to the current year		12		12
Settlements		(58)		—
Reductions related to a lapse in the statute of limitations		(1)		(1)
Balance at December 31	$	39	$	86

Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2017

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule of amounts recognized in the consolidated balance sheets


	U.S. Plans				Non-U.S. Plans
(in millions)	2017		2016		2017		2016
Non-current asset	$	23	$	12	$	37	$	29
Current liabilities		(2)		(1)		(1)		(1)
Non-current liabilities		(10)		(10)		(49)		(40)
Net asset (liability) recognized	$	11	$	1	$	(13)	$	(12)

Schedule of amounts recognized in accumulated other comprehensive loss


	U.S. Plans				Non-U.S. Plans
(in millions)	2017		2016		2017		2016
Net actuarial loss	$	21	$	28	$	55	$	52
Transition obligation		—		—		1		1
Prior service credit		(6)		(6)		(1)		(1)
Net amount recognized	$	15	$	22	$	55	$	52

Schedule of plan obligations and assets for plans with an accumulated benefit obligation in excess of plan assets


	U.S. Plans				Non-U.S. Plans
(in millions)	2017		2016		2017		2016
Projected benefit obligation	$	12	$	11	$	51	$	43
Accumulated benefit obligation		11		10		41		36
Fair value of plan assets		—		—		2		2

Components of net periodic benefit cost


	Year Ended December 31,
	U.S. Plans						Non-U.S. Plans
(in millions)	2017		2016		2015		2017		2016		2015
Service cost	$	6	$	6	$	8	$	3	$	3	$	4
Interest cost		13		14		14		11		10		12
Expected return on plan assets		(21)		(20)		(24)		(10)		(10)		(13)
Amortization of actuarial loss		—		1		1		2		2		3
Amortization of prior service credit		(1)		—		—		—		—		—
Settlement loss		—		—		(1)		—		1		—
Net periodic benefit cost	$	(3)	$	1	$	(2)	$	6	$	6	$	6

Schedule of amounts recorded in other comprehensive income and net periodic benefit cost


(in millions, pre-tax)	U.S. Plans						Non-U.S. Plans
	2017		2016		2015		2017		2016		2015
Net actuarial (gain) loss	$	(7)	$	10	$	—	$	(3)	$	6	$	(18)
Prior service credit		—		(6)		—		—		(1)		—
Amortization of actuarial loss		—		(1)		(1)		(2)		(2)		(3)
Amortization of prior service credit		1		—		—		—		—		—
Settlement gain		—		—		1		—		—		—
Total recorded in other comprehensive income		(6)		3		—		(5)		3		(21)
Net periodic benefit cost		(3)		1		(2)		6		6		6
Total recorded in other comprehensive income and net periodic benefit cost	$	(9)	$	4	$	(2)	$	1	$	9	$	(15)

Schedule of weighted average assumptions used to determine the company's obligations


	U.S. Plans				Non-U.S. Plans
	2017		2016		2017		2016
Discount rate	3.70	%	4.30	%	4.02	%	4.34	%
Rate of compensation increase	4.42		4.54		3.58		3.62

Schedule of weighted average assumptions used to determine the company's net periodic benefit cost


	U.S. Plans						Non-U.S. Plans
	2017		2016		2015		2017		2016		2015
Discount rate	4.30	%	4.30	%	4.00	%	4.34	%	4.57	%	4.47	%
Expected long-term return on plan assets	5.75		5.75		7.00		5.29		5.41		6.48
Rate of compensation increase	4.54		4.71		4.31		3.62		3.73		3.76

Schedule of weighted average asset allocation


	U.S. Plans				Non-U.S. Plans
Asset Category	2017		2016		2017		2016
Equity securities	26	%	38	%	39	%	41	%
Debt securities	73		61		46		44
Cash and other	1		1		15		15
Total	100	%	100	%	100	%	100	%

Schedule of fair values of the company's plan assets, by asset category and level


	Fair Value Measurements at December 31, 2017
(in millions)	Level 1		Level 2		Level 3		Total
U.S. Plans:
Equity index:
U.S. (a)	$	—	$	51	$	—	$	51
International (b)		—		55		—		55
Fixed income index:
Long bond (c)		—		273		—		273
Long government bond (d)		—		21		—		21
Cash (e)		—		4		—		4
Total U.S. Plans	$	—	$	404	$	—	$	404
Non-U.S. Plans:
Equity index:
U.S. (a)	$	—	$	12	$	—	$	12
Canada (f)		—		22		—		22
International (b)		—		52		—		52
Real estate (g)		—		5		—		5
Fixed income index:
Intermediate bond (h)		—		25		—		25
Long bond (i)		—		84		—		84
Other (j)		—		24		—		24
Cash (e)		2		9		—		11
Total Non-U.S. Plans	$	2	$	233	$	—	$	235


	Fair Value Measurements at December 31, 2016
(in millions)	Level 1		Level 2		Level 3		Total
U.S. Plans:
Equity index:
U.S. (a)	$	—	$	70	$	—	$	70
International (b)		—		68		—		68
Fixed income index:
Long bond (c)		—		227		—		227
Cash (e)		—		3		—		3
Total U.S. Plans	$	—	$	368	$	—	$	368
Non-U.S. Plans:
Equity index:
U.S. (a)	$	—	$	11	$	—	$	11
Canada (f)		—		21		—		21
International (b)		—		49		—		49
Real estate (g)		—		5		—		5
Fixed income index:
Intermediate bond (h)		—		21		—		21
Long bond (i)		—		72		—		72
Other (j)		—		23		—		23
Cash (e)		1		8		—		9
Total Non-U.S. Plans	$	1	$	210	$	—	$	211

(a)

This category consists of both passively and actively managed equity index funds that track the return of large capitalization U.S. equities.

(b)

This category consists of both passively and actively managed equity index funds that track an index of returns on international developed market equities as well as infrastructure assets.

(c)

This category consists of an actively managed fixed income index fund that invests in a diversified portfolio of fixed-income corporate securities with maturities generally exceeding 10 years.

(d)

This category consists of an actively managed fixed income index fund that invests in a diversified portfolio of fixed-income U.S. treasury securities with maturities generally exceeding 10 years.

(e)

This category represents cash or cash equivalents.

(f)

This category consists of an actively managed equity index fund that tracks against an index of large capitalization Canadian equities.

(g)

This category consists of an actively managed equity index fund that tracks against real estate investment trusts and real estate operating companies.

(h)

This category consists of both passively and actively managed fixed income index funds that track the return of intermediate duration government and investment grade corporate bonds.

(i)

This category consists of both passively and actively managed fixed income index funds that track the return of Canada government bonds, investment grade corporate bonds and hedge funds.

(j)

This category mainly consists of investment products provided by an insurance company that offers returns that are subject to a minimum guarantee and mutual funds.

Schedule of benefit payments, which reflect anticipated future service, as appropriate and are expected to be made


(in millions)	U.S. Plans		Non-U.S. Plans
2018	$	21	$	11
2019		20		12
2020		21		12
2021		22		12
2022		23		12
Years 2023 - 2027		124		70

Pension Plan

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule of funded status


	U.S. Plans				Non-U.S. Plans
(in millions)	2017		2016		2017		2016
Benefit obligation
At January 1	$	367	$	359	$	223	$	219
Service cost		6		6		3		3
Interest cost		13		14		11		10
Benefits paid		(23)		(16)		(12)		(15)
Actuarial (gain) loss		30		10		7		6
Curtailment/settlement/amendments		—		(6)		—		(5)
Foreign currency translation		—		—		16		5
Benefit obligation at December 31	$	393	$	367	$	248	$	223

Fair value of plan assets
At January 1	$	368	$	354	$	211	$	206
Actual return on plan assets		59		20		17		11
Employer contributions		—		10		5		7
Benefits paid		(23)		(16)		(12)		(15)
Plan settlements		—		—		—		(5)
Foreign currency translation		—		—		14		7
Fair value of plan assets at December 31	$	404	$	368	$	235	$	211

Funded status	$	11	$	1	$	(13)	$	(12)

Postemployment Retirement Benefits

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule of funded status


(in millions)	2017		2016
Accumulated postretirement benefit obligation
At January 1	$	67	$	64
Service cost		1		1
Interest cost		3		2
Employee contributions		1		—
Actuarial loss		2		2
Benefits paid		(4)		(4)
Foreign currency translation		—		2
At December 31		70		67
Fair value of plan assets		—		—
Funded status	$	(70)	$	(67)

Schedule of amounts recognized in the consolidated balance sheets


(in millions)	2017		2016
Current liabilities	$	(4)	$	(4)
Non-current liabilities		(66)		(63)
Net liability recognized	$	(70)	$	(67)

Schedule of amounts recognized in accumulated other comprehensive loss


(in millions)	2017		2016
Net actuarial loss	$	11	$	7
Prior service credit		(6)		(8)
Net amount recognized	$	5	$	(1)

Components of net periodic benefit cost


	Year Ended December 31,
(in millions)	2017		2016		2015
Service cost	$	1	$	1	$	1
Interest cost		3		2		3
Amortization of prior service credit		(3)		(2)		(2)
Net periodic benefit cost	$	1	$	1	$	2

Schedule of amounts recorded in other comprehensive income and net periodic benefit cost


(in millions, pre-tax)	2017		2016		2015
Net actuarial loss (gain)	$	2	$	2	$	(2)
Amortization of prior service credit		3		2		2
New prior service credit		—		—		2
Total recorded in other comprehensive income		5		4		2
Net periodic benefit cost		1		1		2
Total recorded in other comprehensive income and net periodic benefit cost	$	6	$	5	$	4

Schedule of weighted average assumptions used to determine the company's obligations


	2017		2016
Discount rate	4.92	%	5.42	%

Schedule of weighted average assumptions used to determine the company's net periodic benefit cost


	2017		2016		2015
Discount rate	5.46	%	5.30	%	5.70	%

Schedule of assumptions made in measuring the company's postretirement benefit obligation


	U.S.		Canada		Brazil
2017 increase in per capita cost	6.50	%	5.54	%	8.41	%
Ultimate trend	4.50	%	4.50	%	8.41	%
Year ultimate trend reached	2037		2031		2017

Sensitivity to Trend Assumptions


(in millions)	2017
One-percentage point increase in trend rates:
- Increase in service cost and interest cost components	$	1
- Increase in year-end benefit obligations		7

One-percentage point decrease in trend rates:
- Decrease in service cost and interest cost components		1
- Decrease in year-end benefit obligations		6

Schedule of benefit payments, which reflect anticipated future service, as appropriate and are expected to be made


(in millions)
2018	$	4
2019		4
2020		4
2021		4
2022		5
Years 2023 - 2027		24

Supplementary Information (Tables)

12 Months Ended

Dec. 31, 2017

Supplementary Information

Balance Sheets - supplementary information


(in millions)	2017		2016
Accounts receivable, net:
Accounts receivable — trade	$	760	$	751
Accounts receivable — other		209		178
Allowance for doubtful accounts		(8)		(6)
Total accounts receivable, net		961		923
Inventories:
Finished and in process		495		478
Raw materials		278		260
Manufacturing supplies		50		51
Total inventories		823		789
Accrued liabilities:
Compensation-related costs		101		107
Income taxes payable		22		40
Unrecognized tax benefits		—		72
Dividends payable		44		36
Accrued interest		15		19
Taxes payable other than income taxes		37		36
Other		125		122
Total accrued liabilities		344		432
Non-current liabilities:
Employees’ pension, indemnity, and postretirement		121		109
Other		106		49
Total non-current liabilities	$	227	$	158

Statements of Income - supplementary information


(in millions)	2017		2016		2015
Other income, net:
Insurance settlement	$	9	$	—	$	—
Value-added tax recovery		6		5		4
Gain from sale of plant		—		—		10
Legal settlement		—		—		(7)
Income tax indemnification expense (a)		—		—		(4)
Other		3		(1)		(2)
Other income, net	$	18	$	4	$	1

(a)

Amount fully offset by $4 million of benefit recorded in the income tax provision for 2015.


(in millions)	2017		2016		2015
Financing costs, net:
Interest expense, net of amounts capitalized (a)	$	79	$	73	$	69
Interest income		(11)		(10)		(14)
Foreign currency transaction losses		5		3		6
Financing costs, net	$	73	$	66	$	61

(a)

Interest capitalized amounted to $4 million, $4 million, and $2 million in 2017, 2016 and 2015, respectively.

Statements of Cash Flow - supplementary information


(in millions)	2017		2016		2015
Other non-cash charges to net income:
Share-based compensation expense	$	26	$	28	$	21
Other		13		16		18
Total other non-cash charges to net income	$	39	$	44	$	39


(in millions)	2017		2016		2015
Interest paid	$	77	$	59	$	52
Income taxes paid		289		254		158

Equity (Tables)

12 Months Ended

Dec. 31, 2017

Equity

Schedule of reconciliation of common stock share activity


(Shares of common stock, in thousands)	Issued	Held in Treasury	Outstanding
Balance at December 31, 2014	77,811	6,489	71,322
Issuance of restricted stock units as compensation	—	(102)	102
Performance shares and other share-based awards	—	(75)	75
Stock options exercised	—	(556)	556
Purchase/acquisition of treasury stock	—	439	(439)
Balance at December 31, 2015	77,811	6,195	71,616
Issuance of restricted stock units as compensation	—	(94)	94
Performance shares and other share-based awards	—	(70)	70
Stock options exercised	—	(636)	636
Purchase/acquisition of treasury stock	—	2	(2)
Balance at December 31, 2016	77,811	5,397	72,414
Issuance of restricted stock units as compensation	—	(103)	103
Performance shares and other share-based awards	—	(75)	75
Stock options exercised	—	(443)	443
Purchase/acquisition of treasury stock	—	1,039	(1,039)
Balance at December 31, 2017	77,811	5,815	71,996

Schedule of stock based compensation expense


(in millions)	2017		2016		2015
Stock options:
Pre-tax compensation expense	$	7	$	9	$	7
Income tax benefit		(2)		(3)		(3)
Stock option expense, net of income taxes		5		6		4

RSUs:
Pre-tax compensation expense		13		12		9
Income tax benefit		(4)		(5)		(3)
RSUs, net of income taxes		9		7		6

Performance shares and other share-based awards:
Pre-tax compensation expense		6		7		5
Income tax benefit		(2)		(3)		(2)
Performance shares and other share-based compensation expense, net of income taxes		4		4		3

Total share-based compensation:
Pre-tax compensation expense		26		28		21
Income tax benefit		(8)		(11)		(8)
Total share-based compensation expense, net of income taxes	$	18	$	17	$	13

Schedule of valuation assumptions for stock options



	For the Year Ended December 31,
	2017		2016		2015
Expected life (in years)	5.5		5.5		5.5
Risk-free interest rate	1.9	%	1.4	%	1.4	%
Expected volatility	22.5	%	23.4	%	25.2	%
Expected dividend yield	1.7	%	1.8	%	2.0	%

Schedule of summary of information about outstanding and exercisable stock options, by range of exercise prices


		Weighted
		Average		Average	Aggregate
	Number of	Exercise		Remaining	Intrinsic
	Options	Price per		Contractual	Value
	(in thousands)	Share		Term (Years)	(in millions)
Outstanding as of December 31, 2016	2,281	$	61.39	5.93	$	145
Granted	278		117.65
Exercised	(443)		46.16
Cancelled	(21)		87.50
Outstanding as of December 31, 2017	2,095	$	71.81	5.87	$	142
Exercisable as of December 31, 2017	1,527	$	59.14	5.24	$	123

Schedule of stock option activity



	Year Ended December 31,
(dollars in millions, except per share)	2017		2016		2015
Weighted average grant date fair value of stock options granted (per share)	$	23.90	$	18.73	$	16.04
Total intrinsic value of stock options exercised		35		46		27

Schedule of restricted unit activity


		Weighted
	Number of	Average
	Restricted	Fair Value
(shares in thousands)	Shares	per Share
Non-vested at December 31, 2016	429	$	81.04
Granted	125		119.54
Vested	(148)		65.03
Cancelled	(19)		95.17
Non-vested at December 31, 2017	387	$	100.13

Summary of net changes in accumulated other comprehensive loss


			Deferred				Unrealized		Accumulated
	Cumulative		(Loss) Gain		Pension and		(Loss)		Other
	Translation		on Hedging		Postretirement		Gain on		Comprehensive
(in millions)	Adjustment		Activities		Adjustment		Investment		(Loss) Gain
Balance, December 31, 2014	$	(701)	$	(19)	$	(61)	$	(1)	$	(782)
Other comprehensive (loss) income before reclassification adjustments		(324)		(61)		18		—		(367)
Amount reclassified from accumulated OCI		—		46		1		—		47
Tax benefit (provision)		—		5		(5)		—		—
Net other comprehensive (loss) income		(324)		(10)		14		—		(320)
Balance, December 31, 2015		(1,025)		(29)		(47)		(1)		(1,102)
Other comprehensive income (loss) before reclassification adjustments		17		(17)		(14)		1		(13)
Amount reclassified from accumulated OCI		—		49		1		—		50
Tax (provision) benefit		—		(10)		4		—		(6)
Net other comprehensive income (loss)		17		22		(9)		1		31
Balance, December 31, 2016		(1,008)		(7)		(56)		—		(1,071)
Other comprehensive income (loss) before reclassification adjustments		57		(16)		8		3		52
Amount reclassified from accumulated OCI		—		6		(2)		—		4
Tax benefit (provision)		—		4		(1)		(1)		2
Net other comprehensive income (loss)		57		(6)		5		2		58
Balance, December 31, 2017	$	(951)	$	(13)	$	(51)	$	2	$	(1,013)

Schedule of reclassifications from AOCI into net income


							Affected Line Item in
	Amount Reclassified from AOCI						Consolidated
(in millions)	2017		2016		2015		Statements of Income
Gains (losses) on cash flow hedges:
Commodity contracts	$	(5)	$	(45)	$	(43)	Cost of sales
Foreign currency contracts		1		(2)		—	Net sales/Cost of sales
Interest rate contracts		(2)		(2)		(3)	Financing costs, net
Gains (losses) related to pension and other postretirement obligations		2		(1)		(1)	(a)
Total before-tax reclassifications		(4)		(50)		(47)
Tax benefit		1		16		14
Total after-tax reclassifications	$	(3)	$	(34)	$	(33)

(a)

This component is included in the computation of net periodic benefit cost and affects both cost of sales and operating expenses on the Consolidated Statements of Income.

Schedule of basic and diluted earnings per common share


	Year ended December 31,
	2017			2016			2015
	Net Income	Weighted	Per	Net Income	Weighted	Per	Net Income	Weighted	Per
	Available	Average	Share	Available	Average	Share	Available	Average	Share
(in millions, except per share amounts)	to Ingredion	Shares	Amount	to Ingredion	Shares	Amount	to Ingredion	Shares	Amount

Basic EPS	$ 519	72.0	$ 7.21	$ 485	72.3	$ 6.70	$ 402	71.6	$ 5.62

Effect of Dilutive Securities:
Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards		1.5			1.8			1.4

Diluted EPS	$ 519	73.5	$ 7.06	$ 485	74.1	$ 6.55	$ 402	73.0	$ 5.51

Segment Information (Tables)

12 Months Ended

Dec. 31, 2017

Segment Information

Schedule of segment reporting of net sales, operating income and total assets


(in millions)	2017		2016		2015
Net sales to unaffiliated customers:
North America	$	3,529	$	3,447	$	3,345
South America		1,007		1,010		1,013
Asia Pacific		740		709		733
EMEA		556		538		530
Total	$	5,832	$	5,704	$	5,621

Operating income:
North America	$	661	$	610	$	479
South America		80		89		101
Asia Pacific		112		111		107
EMEA		113		106		93
Corporate (a)		(82)		(86)		(75)
Subtotal		884		830		705
Restructuring/impairment charges (b)		(38)		(19)		(28)
Acquisition/integration costs		(4)		(3)		(10)
Charge for fair value markup of acquired inventory		(9)		—		(10)
Insurance settlement		9		—		—
Litigation settlement		—		—		(7)
Gain from land sale		—		—		10
Total operating income		842		808		660
Financing costs, net		73		66		61
Income before income taxes	$	769	$	742	$	599

(a)

For 2015, includes $4 million of expense relating to a tax indemnification agreement with offsetting income of $4 million recorded in the provision for income taxes (see Note 9).

(b)


	As of December 31,
(in millions)	2017		2016
Total assets:
North America (a)	$	3,967	$	3,796
South America		812		809
Asia Pacific		774		697
EMEA		527		480
Total	$	6,080	$	5,782

(a)

For purposes of presentation, North America includes Corporate assets.


(in millions)	2017		2016		2015
Depreciation and amortization:
North America (a)	$	140	$	130	$	123
South America		27		26		30
Asia Pacific		25		23		23
EMEA		17		17		18
Total	$	209	$	196	$	194
Mechanical stores expense (b):
North America (a)	$	37	$	37	$	36
South America		12		12		13
Asia Pacific		5		5		5
EMEA		3		3		3
Total	$	57	$	57	$	57
Capital expenditures and mechanical stores purchases:
North America (a)	$	180	$	167	$	158
South America		50		56		61
Asia Pacific		51		41		36
EMEA		33		20		25
Total	$	314	$	284	$	280

(a)

For purposes of presentation, North America includes Corporate activities of depreciation, amortization, capital expenditures, and mechanical stores purchase, respectively.

(a)

Schedule of net sales to unaffiliated customers by country of origin


	Net Sales
(in millions)	2017		2016		2015
U.S.	$	2,191	$	2,117	$	1,983
Mexico		952		955		945
Brazil		519		522		452
Canada		385		375		417
Korea		275		266		276
Others		1,510		1,469		1,548
Total	$	5,832	$	5,704	$	5,621

Schedule of long-lived assets (excluding intangible assets) by country


	Long-lived Assets
(in millions)	2017		2016
U.S.	$	977	$	955
Mexico		306		303
Brazil		235		245
Canada		179		147
Thailand		137		119
Germany		133		106
Korea		109		84
Others		284		278
Total	$	2,360	$	2,237

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Data (Unaudited)

Schedule of quarterly financial data


(in millions, except per share amounts)	1st QTR (a)		2nd QTR (b)		3rd QTR (c)		4th QTR (d)
2017
Net sales before shipping and handling costs	$	1,537	$	1,542	$	1,574	$	1,527
Less: shipping and handling costs		84		85		89		90
Net sales		1,453		1,457		1,485		1,437
Gross profit		352		373		388		360
Net income attributable to Ingredion		124		130		166		99
Basic earnings per common share of Ingredion		1.72		1.81		2.31		1.37
Diluted earnings per common share of Ingredion		1.68		1.78		2.26		1.35
Per share dividends declared	$	0.50	$	0.50	$	0.60	$	0.60


(in millions, except per share amounts)	1st QTR (e)		2nd QTR (f)		3rd QTR (g)		4th QTR (h)
2016
Net sales before shipping and handling costs	$	1,434	$	1,533	$	1,569	$	1,484
Less: shipping and handling costs		74		78		80		85
Net sales		1,360		1,455		1,489		1,399
Gross profit		339		355		369		339
Net income attributable to Ingredion		130		117		143		94
Basic earnings per common share of Ingredion		1.81		1.62		1.98		1.29
Diluted earnings per common share of Ingredion		1.77		1.58		1.93		1.26
Per share dividends declared	$	0.45	$	0.45	$	0.50	$	0.50

(a)

(b)

In the second quarter of 2017, the Company recorded $5 million in after-tax, net restructuring costs and $3 million in after-tax, non-cash inventory charges.

(c)

(d)

(e)

In the first quarter of 2016, the Company recorded $1 million in after-tax acquisition and integration costs.

(f)

In the second quarter of 2016, the Company recorded $10 million in after-tax, net restructuring costs.

(g)

In the third quarter of 2016, the Company recorded $2 million in after-tax, net restructuring costs.

(h)

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Foreign currency transaction losses	$ 5	$ 3	$ 6
Foreign currency transaction and translation
Cumulative translation loss adjustments	1,000	1,000
Investments
Cost Method Investments	2	2
Depreciation expense	179	171	172
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	803	784	$ 601
Intangible Assets, Net (Excluding Goodwill)	$ 493	$ 502
Building \| Minimum
Property, Plant and Equipment [Line Items]
Useful life	25 years
Building \| Maximum
Property, Plant and Equipment [Line Items]
Useful life	50 years
Other Capitalized Property Plant and Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful life	2 years
Other Capitalized Property Plant and Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful life	25 years

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Carrying amount of goodwill
Balance at the beginning of the period	$ 784	$ 601
Acquisitions	5	186
Currency translation	14	(3)
Balance at the end of the period	803	784
Carrying value of goodwill and accumulated impairment charges
Goodwill before impairment charges	958	939
Accumulated impairment charges	(155)	(155)
Balance at the end of the period	803	784
North America
Carrying amount of goodwill
Balance at the beginning of the period	610	424
Acquisitions	(10)	186
Balance at the end of the period	600	610
Carrying value of goodwill and accumulated impairment charges
Goodwill before impairment charges	601	611
Accumulated impairment charges	(1)	(1)
Balance at the end of the period	600	610
South America
Carrying amount of goodwill
Balance at the beginning of the period	26	22
Currency translation		4
Balance at the end of the period	26	26
Carrying value of goodwill and accumulated impairment charges
Goodwill before impairment charges	59	59
Accumulated impairment charges	(33)	(33)
Balance at the end of the period	26	26
Asia Pacific
Carrying amount of goodwill
Balance at the beginning of the period	85	86
Acquisitions	15
Currency translation	7	(1)
Balance at the end of the period	107	85
Carrying value of goodwill and accumulated impairment charges
Goodwill before impairment charges	228	206
Accumulated impairment charges	(121)	(121)
Balance at the end of the period	107	85
EMEA
Carrying amount of goodwill
Balance at the beginning of the period	63	69
Currency translation	7	(6)
Balance at the end of the period	70	63
Carrying value of goodwill and accumulated impairment charges
Goodwill before impairment charges	70	63
Balance at the end of the period	$ 70	$ 63

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Identifiable intangible assets
Gross	$ 632	$ 608
Accumulated Amortization	(139)	(106)
Net	$ 493	$ 502
Weighted Average Useful Life (years)	18 years	17 years
Amortization expense	$ 30	$ 25	$ 22
Expected intangible amortization expense for subsequent years
2018	29
2019	29
2020	27
2021	19
2022	18
Balance thereafter	$ 193
Hedging instruments
Maximum term over which the company hedges exposures to the variability of cash flows for commodity price risk	24 months
Earnings per common share
Weighted average number of shares outstanding, basic	72,000,000	72,300,000	71,600,000
Weighted average number of shares outstanding, diluted	73,500,000	74,100,000	73,000,000
Antidilutive securities excluded from computation of earnings per share amount	300,000	0	300,000
Trademarks/tradenames
Identifiable intangible assets
Gross	$ 178	$ 143
Net	178	143
Customer relationships
Identifiable intangible assets
Gross	329	227
Accumulated Amortization	(62)	(42)
Net	$ 267	$ 185
Weighted Average Useful Life (years)	20 years	20 years
Technology
Identifiable intangible assets
Gross	$ 103	$ 100
Accumulated Amortization	(68)	(57)
Net	$ 35	$ 43
Weighted Average Useful Life (years)	9 years	10 years
TIC Gums intangible assets (preliminary)
Identifiable intangible assets
Gross		$ 117
Net		117
Other
Identifiable intangible assets
Gross	$ 22	21
Accumulated Amortization	(9)	(7)
Net	$ 13	$ 14
Weighted Average Useful Life (years)	16 years	16 years

Acquisitions (Details) $ in Millions						12 Months Ended
Acquisitions (Details) $ in Millions	Mar. 09, 2017 USD ($)	Dec. 29, 2016 USD ($)	Nov. 29, 2016 USD ($)	Aug. 03, 2015 USD ($)	Mar. 11, 2015 USD ($) Plant	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Business Acquisition [Line Items]
Goodwill						$ 803	$ 784	$ 601
Consideration net of cash						17	407	434
TIC Gums
Business Acquisition [Line Items]
Goodwill		$ 177
Consideration net of cash		396
Kerr
Business Acquisition [Line Items]
Goodwill				$ 27
Consideration net of cash				102
Shandong Huanong
Business Acquisition [Line Items]
Cash consideration			$ 12
Sun Flour
Business Acquisition [Line Items]
Total purchase consideration	$ 18
Cash consideration						16
Liabilities assumed						2
Penford
Business Acquisition [Line Items]
Total purchase consideration					$ 332
Extinguishment of debt in conjunction with the acquisition					$ 93
Number of Plants \| Plant					6
North America
Business Acquisition [Line Items]
Goodwill						600	610	424
North America \| TIC Gums
Business Acquisition [Line Items]
Goodwill		175
North America \| Kerr
Business Acquisition [Line Items]
Goodwill				$ 27
North America \| Penford
Business Acquisition [Line Items]
Goodwill					$ 121
Asia Pacific
Business Acquisition [Line Items]
Goodwill						$ 107	$ 85	$ 86
Asia Pacific \| TIC Gums
Business Acquisition [Line Items]
Goodwill		$ 2
Asia Pacific \| Sun Flour
Business Acquisition [Line Items]
Goodwill	$ 14

Acquisitions - Purchase price allocations (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 29, 2016	Dec. 31, 2015	Aug. 03, 2015
Final purchase price allocation
Goodwill	$ 803	$ 784		$ 601
TIC Gums
Final purchase price allocation
Working capital (excluding cash)			$ 49
Property, plant and equipment			37
Identifiable intangible assets			133
Goodwill			177
Total final purchase price, net of cash			$ 396
Kerr
Final purchase price allocation
Working capital (excluding cash)					$ 37
Property, plant and equipment					8
Other assets					1
Identifiable intangible assets					29
Goodwill					27
Total final purchase price, net of cash					$ 102

Acquisitions - Fair Value (Details) - USD ($) $ in Millions						3 Months Ended					12 Months Ended
Acquisitions - Fair Value (Details) - USD ($) $ in Millions	Mar. 09, 2017	Dec. 29, 2016	Nov. 29, 2016	Aug. 03, 2015	Mar. 11, 2015	Dec. 31, 2017	Sep. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other disclosures
Consideration net of cash											$ 17	$ 407	$ 434
Increase in pre-tax cost of sales for fair value mark-up of acquired inventory											9		10
Pre-tax Acquisition and integration costs						$ 1	$ 1	$ 1	$ 1	$ 1	4	$ 3	$ 10
TIC Gums
Other disclosures
Consideration net of cash		$ 396
Tangible assets		37
Kerr
Other disclosures
Consideration net of cash				$ 102
Tangible assets				8
Shandong Huanong
Other disclosures
Cash consideration			$ 12
Tangible assets			$ 9
Sun Flour
Other disclosures
Cash consideration											$ 16
Total purchase consideration	$ 18
Intangible Assets, Net (Including Goodwill)	$ 21
Penford
Other disclosures
Total purchase consideration					$ 332
Fair Value, Inputs, Level 3 \| TIC Gums \| Customer relationships \| Multi-period excess earnings method
Identifiable intangible assets
Fair Value		$ 94
Estimated Remaining Useful Life		20 years
Fair Value, Inputs, Level 3 \| TIC Gums \| Trade names \| Relief-from-royalty method
Identifiable intangible assets
Fair Value		$ 35
Fair Value, Inputs, Level 3 \| TIC Gums \| Technology \| Relief-from-royalty method
Identifiable intangible assets
Fair Value		$ 4
Estimated Remaining Useful Life		8 years
Fair Value, Inputs, Level 3 \| Kerr \| Customer relationships \| Multi-period excess earnings method
Identifiable intangible assets
Fair Value				$ 24
Estimated Remaining Useful Life				15 years
Fair Value, Inputs, Level 3 \| Kerr \| Trade names \| Relief-from-royalty method
Identifiable intangible assets
Fair Value				$ 4
Estimated Remaining Useful Life				11 years
Fair Value, Inputs, Level 3 \| Kerr \| Noncompetition Agreements \| Income Approach
Identifiable intangible assets
Fair Value				$ 1
Estimated Remaining Useful Life				3 years

Sale of Canadian Plant (Details) - USD ($) $ in Millions		3 Months Ended							12 Months Ended
Sale of Canadian Plant (Details) - USD ($) $ in Millions	Dec. 15, 2015	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Restructuring charges		$ 10	$ 5	$ 5	$ 11	$ 2	$ 2	$ 10	$ 38	$ 19	$ 28
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] \| Manufacturing assets in Port Colborne, Ontario, Canada
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration for the sale of assets	$ 35
Gain from sale of Canadian plant	10
Goodwill written-off	$ 2
Restructuring charges										$ 2	$ 4

Impairment and Restructuring Charges (Details) - USD ($) $ in Millions	3 Months Ended							12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Restructuring and asset impairment charges
Restructuring charges	$ 10	$ 5	$ 5	$ 11	$ 2	$ 2	$ 10		$ 38	$ 19	$ 28
Other restructuring charges including refinement of prior year restructuring activities									2
Argentina employee-related severance
Restructuring and asset impairment charges
Restructuring charges									17
Finance transformation initiative in North America
Restructuring and asset impairment charges
Restructuring charges									6
Stevia Leaf Extraction Process in Brazil
Restructuring and asset impairment charges
Restructuring charges	13								13
Abandonment of certain assets	6
Inventory write downs	6
Restructuring accrual
Restructuring charge for employee-related severance costs	1
Stevia Leaf Extraction Process in Brazil \| Forecast
Restructuring and asset impairment charges
Other additional restructuring charges								$ 1
Penford
Restructuring and asset impairment charges
Restructuring charges											12
Employee Severance related costs
Restructuring accrual
Balance in severance accrual at December 31, 2016				$ 7				11	7
Payments made to terminated employees									(15)
Balance in severance accrual at September 30, 2017	$ 11				$ 7				11	7
Employee Severance related costs \| Forecast
Restructuring and asset impairment charges
Severance accrual expected to be paid within next twelve months								10
Employee Severance related costs \| Argentina employee-related severance
Restructuring accrual
Restructuring charge for employee-related severance costs									15
Employee Severance related costs \| Finance transformation initiative in North America
Restructuring and asset impairment charges
Restructuring charges									3
Restructuring accrual
Restructuring charge for employee-related severance costs									3
Employee Severance related costs \| Other employee-related severance
Restructuring accrual
Restructuring charge for employee-related severance costs									3
Employee Severance related costs \| Prior year restructuring activities
Restructuring accrual
Restructuring charge for employee-related severance costs									(2)
Employee Severance related costs \| Optimization Initiative Of North And South America
Restructuring and asset impairment charges
Restructuring charges										6
Restructuring accrual
Restructuring charge for employee-related severance costs										6
Non employee severance costs \| Finance transformation initiative in North America
Restructuring and asset impairment charges
Restructuring charges									$ 3
Employee Severance And Other Costs \| Finance transformation initiative in North America \| Minimum \| Forecast
Restructuring and asset impairment charges
Restructuring charges								1
Employee Severance And Other Costs \| Finance transformation initiative in North America \| Maximum \| Forecast
Restructuring and asset impairment charges
Restructuring charges								$ 2
Employee Severance And Other Costs \| IT transformation
Restructuring and asset impairment charges
Restructuring charges										11
Facility Closing \| Port Colborne Ontario Canada Plant
Restructuring and asset impairment charges
Restructuring charges										2
Facility Closing \| Plant Closing In Trombudo Central And Conchal
Restructuring and asset impairment charges
Restructuring charges											$ 12
Facility Closing \| Port Colborne Ontario Canada Plant
Restructuring and asset impairment charges
Restructuring charges										$ 2

Financial Instruments, Derivatives and Hedging Activities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Financial instruments, derivatives and hedging activities
Accumulated gains (losses) from derivative instruments, net of tax effect	$ (1,013)	$ (1,071)	$ (1,102)	$ (782)
Carrying amount of fair value adjustment related to hedged fixed rate instrument debt instrument	1	3
Senior Notes 4.625 Percent Due November 1, 2020
Financial instruments, derivatives and hedging activities
Debt, face amount	$ 400
Commodity Contracts \| Minimum
Financial instruments, derivatives and hedging activities
Maturity period of price risk derivative	12 months
Commodity Contracts \| Maximum
Financial instruments, derivatives and hedging activities
Maturity period of price risk derivative	24 months
Treasury Lock
Foreign currency hedging
Derivative notional amount	$ 0	0
Cash Flow Hedging \| Commodity Contracts
Financial instruments, derivatives and hedging activities
Accumulated gains (losses) from derivative instruments, net of tax effect	(12)
Accumulated gains (losses) from derivative instruments, net income tax effect	7
Cash Flow Hedging \| Treasury Lock
Financial instruments, derivatives and hedging activities
Accumulated gains (losses) from derivative instruments, net of tax effect	(2)	(4)
Accumulated gains (losses) from derivative instruments, net income tax effect	1	2
Cash Flow Hedging \| Foreign Exchange Forward
Financial instruments, derivatives and hedging activities
Accumulated gains (losses) from derivative instruments, net of tax effect	1
Accumulated gains (losses) from derivative instruments, net income tax effect	(1)
Fair Value Hedging
Financial instruments, derivatives and hedging activities
Fair value of interest rate derivatives	$ 1	3
Fair Value Hedging \| Interest Rate Swap \| Senior Notes 4.625 Percent Due November 1, 2020
Financial instruments, derivatives and hedging activities
Debt, fixed interest rate (as a percent)	4.625%
Debt, face amount	$ 200
Debt, floating rate of interest basis	six-month U.S. LIBOR
Fair Value Hedging \| Foreign Exchange Forward
Financial instruments, derivatives and hedging activities
Fair value of assets	$ 11	5
Fair Value Hedging \| Foreign Exchange Forward \| Short
Foreign currency hedging
Derivative notional amount	447	432
Fair Value Hedging \| Foreign Exchange Forward \| Long
Foreign currency hedging
Derivative notional amount	$ 121	$ 227

Financial Instruments, Derivatives and Hedging Activities Balance Sheet Location (Details) lb in Millions, gal in Millions, bu in Millions, MMBTU in Millions, $ in Millions	Dec. 31, 2017 USD ($) MMBTU lb gal bu	Dec. 31, 2016 USD ($)
Corn Commodity
Fair value of commodity contracts
Futures contract (in bushels for corn and gallons for ethanol) \| bu	92
Soy Bean Oil
Fair value of commodity contracts
Soybean oil futures contract (in pounds) \| lb	16
Natural Gas Commodity
Fair value of commodity contracts
Natural gas futures contract (in mmbtu) \| MMBTU	35
Ethanol Commodity
Fair value of commodity contracts
Futures contract (in bushels for corn and gallons for ethanol) \| gal	4
Designated as Hedging Instrument
Fair value of commodity contracts
Fair value of assets	$ 14	$ 39
Fair value of liabilities	31	27
Designated as Hedging Instrument \| Commodity and Foreign Currency Contracts \| Accounts Receivable, Net
Fair value of commodity contracts
Fair value of assets	11	31
Designated as Hedging Instrument \| Commodity and Foreign Currency Contracts \| Accounts Payable and Accrued Liabilities
Fair value of commodity contracts
Fair value of liabilities	23	25
Designated as Hedging Instrument \| Commodity, foreign currency, and interest rate contracts \| Other Assets
Fair value of commodity contracts
Fair value of assets	3	8
Designated as Hedging Instrument \| Commodity, foreign currency, and interest rate contracts \| Non Current Liabilities
Fair value of commodity contracts
Fair value of liabilities	$ 8	$ 2

Financial Instruments, Derivatives and Hedging Activities Contracts (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Gains or losses on derivatives
Amount of Gains (Losses) Recognized in OCI on Derivatives	$ (16)	$ (17)	$ (61)
Amount of Gains (Losses) Reclassified from AOCI into Income	(6)	(49)	(46)
Commodity Contracts
Gains or losses on derivatives
Amount of Gains (Losses) Recognized in OCI on Derivatives	(22)	(15)	(61)
Commodity Contracts \| Cost of Sales
Gains or losses on derivatives
Amount of Gains (Losses) Reclassified from AOCI into Income	(5)	(45)	(43)
Foreign Currency Contracts
Gains or losses on derivatives
Amount of Gains (Losses) Recognized in OCI on Derivatives	6	(2)
Foreign Currency Contracts \| Net sales
Gains or losses on derivatives
Amount of Gains (Losses) Reclassified from AOCI into Income	1	(2)
Interest Rate Contract \| Financing Costs, Net
Gains or losses on derivatives
Amount of Gains (Losses) Reclassified from AOCI into Income	(2)	$ (2)	$ (3)
Cash Flow Hedging \| Commodity Contracts
Gains or losses on derivatives
Loss expected to be reclassified into earnings during the next twelve months on settled commodity hedging contracts, net of tax	(9)
Loss expected to be reclassified into earnings during the next twelve months on settled commodity hedging contracts, income tax effect	5
Cash Flow Hedging \| Foreign Currency Contracts
Gains or losses on derivatives
Gains expected to be reclassified into earnings during the next twelve months on settled foreign currency hedges, net of tax	1
Gains expected to be reclassified during the next twelve months on settled foreign currency hedges, income tax effect	(1)
Cash Flow Hedging \| Treasury Lock
Gains or losses on derivatives
Loss expected to be reclassified into earnings during the next twelve months on settled T-Locks, net of tax	(1)
Loss expected to be reclassified into earnings during the next twelve months on settled T-Locks, income tax effect	$ 1

Financial Instruments, Derivatives and Hedging Activities Recurring And Nonrecurring (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Fair value of assets and liabilities
Long-term debt	$ 1,845	$ 1,929
Estimate of Fair Value Measurement
Fair value of assets and liabilities
Available for sale securities	10	7
Derivative assets	14	39
Derivative liabilities	31	27
Long-term debt	1,845	1,929
Estimate of Fair Value Measurement \| Fair Value, Inputs, Level 1
Fair value of assets and liabilities
Available for sale securities	10	7
Derivative assets	3	6
Derivative liabilities	11	11
Estimate of Fair Value Measurement \| Fair Value, Inputs, Level 2
Fair value of assets and liabilities
Derivative assets	11	33
Derivative liabilities	20	16
Long-term debt	$ 1,845	$ 1,929

Financial Instruments, Derivatives and Hedging Activities Debt Instruments (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Sep. 22, 2016
Long-term debt
Carrying amount	$ 1,744	$ 1,850
Long-term debt	1,845	1,929
Carrying Amount of Fair Value Adjustment Hedged Fixed Rate Debt	1	3
Fair value adjustment related to hedged fixed rate debt instrument	1,744	1,850
Senior Notes 3.2 Percent Due October 1, 2026
Long-term debt
Carrying amount	496	496
Long-term debt	$ 492	$ 482
Debt, interest rate (as a percent)	3.20%	3.20%	3.20%
Senior Notes 4.625 Percent Due November 1, 2020
Long-term debt
Carrying amount	$ 398	$ 398
Long-term debt	$ 421	$ 428
Debt, interest rate (as a percent)	4.625%	4.625%
Senior Notes 1.8 Percent Due September 25, 2017
Long-term debt
Carrying amount		$ 299
Long-term debt		$ 301
Debt, interest rate (as a percent)	1.80%	1.80%
Senior Notes 6.0 Percent Due April 15, 2017
Long-term debt
Carrying amount		$ 200
Long-term debt		$ 202
Debt, interest rate (as a percent)	6.00%	6.00%
Senior Notes 5.62 Percent Due March 25, 2020
Long-term debt
Carrying amount	$ 200	$ 200
Long-term debt	$ 212	$ 217
Debt, interest rate (as a percent)	5.62%	5.62%
Term loan credit agreement due April 25, 2019
Long-term debt
Carrying amount	$ 395
Long-term debt	$ 395

Financing Arrangements (Details) $ in Millions				12 Months Ended
Financing Arrangements (Details) $ in Millions	Jan. 16, 2018 USD ($)	Oct. 25, 2017 USD ($)	Aug. 18, 2017 USD ($) item	Dec. 31, 2017 USD ($)	Sep. 22, 2016 USD ($)
Long-term debt
Line of Credit Facility, Maximum Borrowing Capacity					$ 1,000
Domestic Line of Credit
Long-term debt
Additional increase in borrowing capacity of the line of credit available at the entity's option				$ 500
Debt, floating rate of interest basis				LIBOR
Foreign Line of Credit
Long-term debt
Unused operating lines of credit				$ 488
Senior Notes 1.8 Percent Due September 25 2017
Long-term debt
Repayments of debt		$ 300
Term loan credit agreement
Long-term debt
Number of borrowings \| item			3
Repayments of debt	$ 185			$ 25
Line of Credit Facility, Maximum Borrowing Capacity			$ 500
Aggregate principal Amount		$ 420
Term of the credit agreement			18 months

Financing Arrangements (Details) - USD ($)	Oct. 11, 2016	Sep. 22, 2016	Dec. 31, 2017	Oct. 25, 2017	Aug. 18, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Fair value adjustment related to hedged fixed rate debt			$ 1,000,000			$ 3,000,000
Long-term debt			1,744,000,000			1,850,000,000
Short-term borrowings			120,000,000			106,000,000
Long-term Debt, Total			$ 1,864,000,000			$ 1,956,000,000
Line of credit facility, maximum borrowing capacity		$ 1,000,000,000
Senior Notes 3.2 Percent Due October 1, 2026
Debt Instrument [Line Items]
Debt, interest rate (as a percent)		3.20%	3.20%			3.20%
Aggregate principal Amount		$ 500,000,000
Long-term debt			$ 496,000,000			$ 496,000,000
Net proceeds from sale of the notes		497,000,000
Term loan credit agreement due April 25, 2019
Debt Instrument [Line Items]
Long-term debt			$ 395,000,000
Repayments of Long-term Debt		350,000,000
Senior Notes 4.625 Percent Due November 1, 2020
Debt Instrument [Line Items]
Debt, interest rate (as a percent)			4.625%			4.625%
Aggregate principal Amount			$ 400,000,000
Long-term debt			$ 398,000,000			$ 398,000,000
Senior Notes 1.8 Percent Due September 25, 2017
Debt Instrument [Line Items]
Debt, interest rate (as a percent)			1.80%			1.80%
Long-term debt						$ 299,000,000
Senior Notes 6.0 Percent Due April 15, 2017
Debt Instrument [Line Items]
Debt, interest rate (as a percent)			6.00%			6.00%
Long-term debt						$ 200,000,000
Senior Notes 5.62 Percent Due March 25, 2020
Debt Instrument [Line Items]
Debt, interest rate (as a percent)			5.62%			5.62%
Long-term debt			$ 200,000,000			$ 200,000,000
Term loan credit agreement
Debt Instrument [Line Items]
Aggregate principal Amount				$ 420,000,000
Line of credit facility, maximum borrowing capacity					$ 500,000,000
Revolving Credit Agreement
Debt Instrument [Line Items]
Payment of borrowings under revolving credit facility		$ 52,000,000
Borrowings outstanding			$ 0
Line of credit facility, maximum borrowing capacity	$ 1,000,000,000
Debt Instrument, Term	5 years

Financing Arrangements (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Long-term debt
Fair value adjustment related to hedged fixed rate debt	$ 1	$ 3
Long-term debt	1,744	1,850
Long-term debt maturities
2020	600
2026	500
2037	250
Guaranteed obligations of consolidated subsidiaries	$ 56	121
Senior Notes 1.8 Percent Due September 25, 2017
Long-term debt
Long-term debt		299
Senior Notes 6.0 Percent Due April 15, 2017
Long-term debt
Long-term debt		$ 200

Leases (Details) - USD ($) $ in Millions	12 Months Ended
Leases (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Leases
Rental expense	$ 51	$ 53	$ 52
Minimum lease payments due on leases
2018	45
2019	40
2020	31
2021	25
2022	20
Balance thereafter	$ 36

Income Taxes - Provision for income taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income before income taxes:
United States	$ 226	$ 176	$ 109
Foreign	543	566	490
Income before income taxes	769	742	599
Current tax expense
US federal	(13)	95	26
State and local	4	8	3
Foreign	179	148	164
Total current tax expense	170	251	193
Deferred tax expense (benefit):
US federal	77	13	(8)
State and local	4	1	(1)
Foreign	(14)	(19)	3
Total deferred tax expense (benefit)	67	(5)	(6)
Total provision for income taxes	237	246	$ 187
Deferred tax assets attributable to:
Employee benefit accruals	20	39
Pension and postretirement plans	20	30
Derivative contracts	5	3
Net operating loss carryforwards	32	18
Foreign tax credit carryforwards		4
Other		24
Gross deferred tax assets	77	118
Valuation allowance	(34)	(21)
Net deferred tax assets	43	97
Deferred tax liabilities attributable to:
Property, plant and equipment	185	206
Identified intangibles	37	55
Other	11
Gross deferred tax liabilities	233	261
Net deferred tax liabilities	190	164
Valuation allowance on foreign subsidiaries net deferred tax assets	2	2
State and Local Jurisdiction
Deferred tax assets attributable to:
Net operating loss carryforwards	9	8
Deferred tax liabilities attributable to:
Loss carryforwards, valuation allowance	9	8
Credit carryforwards, valuation allowance	2	2
Foreign Tax Authority
Deferred tax assets attributable to:
Net operating loss carryforwards	23
Deferred tax liabilities attributable to:
Loss carryforwards, valuation allowance	$ 21	$ 9

Income Taxes - Tax Cuts and Jobs Act (Details) $ in Millions		3 Months Ended	12 Months Ended
	Jan. 01, 2018	Dec. 31, 2017 USD ($)	Dec. 31, 2017 USD ($) item	Dec. 31, 2016	Dec. 31, 2015
Provision for tax at statutory rate (as a percent)			35.00%	35.00%	35.00%
Foreign subsidiary dividends received deduction percentage			100.00%
Number of items \| item			4
One-time transition tax			$ 21
Remeasurement of deferred tax assets and liabilities			(38)
Net impact of provision for taxes on unremitted earnings			33
Other items, net			7
Net impact of the TCJA on our 2017 income tax expense		$ 23	$ 23
Net impact of transition tax			2.70%
Net impact of U.S. deferred tax remeasurement			(4.90%)
Net impact of provision for taxes on unremitted earnings			4.30%	0.50%
TCJA other items, net percentage			0.90%
Forecast
Provision for tax at statutory rate (as a percent)	21.00%

Income Taxes - Effective tax rate (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of the US federal statutory tax rate to the Company's effective tax rate
Provision for tax at statutory rate (as a percent)	35.00%	35.00%	35.00%
Tax rate difference on foreign income (as a percent)	(5.60%)	(5.50%)	(5.80%)
State and local taxes - net (as a percent)	0.70%	0.30%	0.30%
Tax impact of fluctuations in Mexican Pesos to US Dollar	(0.50%)	2.40%	2.90%
Net impact of U.S. foreign tax credits	0.30%	(2.30%)	0.90%
Net impact of valuation allowance in Argentina	2.00%	1.00%
Net impact of transition tax	2.70%
Net impact of U.S. deferred tax remeasurement	(4.90%)
Net impact of provision for taxes on unremitted earnings	4.30%	0.50%
Other items - net (as a percent)	(1.90%)	(1.50%)	(2.10%)
Provision at effective tax rate (as a percent)	30.80%	33.10%	31.20%
Tax impact of change in Mexican Pesos to US Dollars	$ 4.0	$ 18.0	$ 17.0
Tax impact of change in Mexican Pesos to US Dollars, percentage points	0.50%	2.40%	2.90%
Pre-tax gain on foreign currency exchange amounts	$ 0.0	$ 0.0
Increase in valuation allowance of foreign subsidiary net deferred tax assets	$ 16.0	$ 7.0
Percentage increase in valuation allowance of foreign subsidiary net deferred tax assets	2.0	1.0
Net tax impact of US / Canada settlement	$ 10.0	$ 24.0
Net tax impact of US / Canada settlement percentage	(1.30%)	3.20%
Net tax impact of US / Canada settlement reserve based on effective tax rate in 2016		$ 7.0
Net tax impact of US / Canada settlement based on effective tax rate in 2016 percentage		1.00%
Income tax provision (benefit) that offset income tax indemnification income	$ 7.0	$ 4.0
Undistributed earnings on foreign subsidiaries tax provision	33.0
Undistributed earnings of foreign subsidiaries	2,700.0
Balance at January 1	86.0	12.0
Additions for tax positions related to prior years		72.0
Reductions for tax positions related to prior years		(9.0)
Additions based on tax positions related to the current year	12.0	12.0
Settlements	(58.0)
Reductions related to a lapse in the statute of limitations	(1.0)	(1.0)
Balance at December 31	39.0	86.0	$ 12.0
Unrecognized tax benefit that, if recognized, could affect the effective tax rate in future periods	15.0
Remaining unrecognized tax benefits	24.0
Unrecognized tax benefit, income tax receivable	23.0
Unrecognized tax foreign benefit that would be created as part of Canada and US process	1.0
Settlement of claims with Canadian tax authority	63.0
Interest expense accrued, net of interest income	$ 2.0	9.0
MEXICO
Reconciliation of the US federal statutory tax rate to the Company's effective tax rate
Provision for tax at statutory rate (as a percent)	30.00%
CANADA
Reconciliation of the US federal statutory tax rate to the Company's effective tax rate
Provision for tax at statutory rate (as a percent)	25.00%
PAKISTAN
Reconciliation of the US federal statutory tax rate to the Company's effective tax rate
Provision for tax at statutory rate (as a percent)	30.00%
BRAZIL
Reconciliation of the US federal statutory tax rate to the Company's effective tax rate
Provision for tax at statutory rate (as a percent)	34.00%
2016
Reconciliation of the US federal statutory tax rate to the Company's effective tax rate
Net tax impact of US / Canada settlement income tax expense		70.0
Net tax impact of US / Canada settlement income tax benefit		$ 46.0
Net tax impact of US / Canada settlement percentage		3.20%
Akzo Nobel NV
Reconciliation of the US federal statutory tax rate to the Company's effective tax rate
Income tax provision (benefit) that offset income tax indemnification income			(4.0)	$ 7.0
Pre-acquisition audit result adjustment, tax			(3.0)	5.0
Pre-acquisition audit result adjustment, interest			$ (1.0)	$ 2.0
Pre-acquisition audit result adjustment (as a percent)			(0.70%)	1.30%

Benefit Plans - Detail (Details) $ in Millions	1 Months Ended	12 Months Ended
Benefit Plans - Detail (Details) $ in Millions	Apr. 30, 2016 USD ($) item	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
US
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Service cost					$ 8
Interest cost					14
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost					8
Interest cost					14
Expected return on plan assets					(24)
Amortization of actuarial loss					1
Settlement loss					(1)
Net periodic benefit cost/Net postretirement benefit costs				$ 1	(2)
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract]
Net actuarial loss (gain)				10
Prior service cost				(6)
Amortization of actuarial loss				(1)	(1)
Settlement gain					1
Total recorded in other comprehensive income				3
Net periodic benefit cost/Net postretirement benefit costs				1	(2)
Non-US
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Service cost					4
Interest cost					12
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost					4
Interest cost					12
Expected return on plan assets					(13)
Amortization of actuarial loss					3
Net periodic benefit cost/Net postretirement benefit costs				6	6
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract]
Net actuarial loss (gain)				6	(18)
Prior service cost				(1)
Amortization of actuarial loss				(2)	(3)
Total recorded in other comprehensive income				3	(21)
Net periodic benefit cost/Net postretirement benefit costs				6	6
Pension Plan
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Balance at the beginning of the period		$ 603	$ 555
Balance at the end of the period			603	555
Pension Plan \| US
Defined Benefit Plan Disclosure [Line Items]
Reduction of benefit obligation				(5)
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Balance at the beginning of the period			367	359
Balance at the beginning of the period		393	367
Service cost			6	6
Interest cost			13	14
Benefits paid			(23)	(16)
Actuarial loss (gain)			30	10
Curtailment / settlement / amendments				(6)
Balance at the end of the period			393	367
Defined Benefit Plan, Benefit Obligation, Ending Balance				367	359
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Balance at the beginning of the period		$ 404	368	354
Actual return on plan assets			59	20
Cash contributions to defined benefit pension plan				10
Benefits paid			(23)	(16)
Balance at the end of the period			404	368	$ 354
Funded status			11	1
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract]
Non-current asset			23	12
Current liabilities			(2)	(1)
Non-current liabilities			(10)	(10)
Net asset (liability) recognized			11	1
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract]
Net actuarial loss			21	28
Prior service cost			(6)	(6)
Net amount recognized			15	22
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract]
Projected benefit obligation			12	11
Accumulated benefit obligation			11	10
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost			6	6
Interest cost			13	14
Expected return on plan assets			(21)	(20)
Amortization of actuarial loss				1
Amortization of prior service credit			(1)
Net periodic benefit cost/Net postretirement benefit costs			(3)	1
Amount related to the amortization of the entity's accumulated actuarial loss included in accumulated other comprehensive loss that will be recognized in net pension expense in next fiscal year			1
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract]
Net actuarial loss (gain)			(7)
Amortization of prior service credit			1
Total recorded in other comprehensive income			(6)
Net periodic benefit cost/Net postretirement benefit costs			$ (3)	$ 1
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Discount rate (as a percent)			3.70%	4.30%
Rate of compensation increase (as a percent)			4.42%	4.54%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Discount rate (as a percent)			4.30%	4.30%	4.00%
Expected long-term return on plan assets (as a percent)			5.75%	5.75%	7.00%
Rate of compensation increase (as a percent)			4.54%	4.71%	4.31%
Pension Plan \| US \| Pro Forma
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Expected long-term return on plan assets (as a percent)		5.30%
Pension Plan \| US \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Percent of base salary, bonus and overtime credited to participating employees' accounts by the Company			3.00%
Pension Plan \| US \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Percent of base salary, bonus and overtime credited to participating employees' accounts by the Company			10.00%
Pension Plan \| Non-US
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Balance at the beginning of the period			$ 223	$ 219
Balance at the beginning of the period		$ 248	223
Service cost			3	3
Interest cost			11	10
Benefits paid			(12)	(15)
Actuarial loss (gain)			7	6
Curtailment / settlement / amendments				(5)
Foreign currency translation			16	5
Balance at the end of the period			248	223
Defined Benefit Plan, Benefit Obligation, Ending Balance				223	$ 219
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Balance at the beginning of the period		$ 235	211	206
Actual return on plan assets			17	11
Cash contributions to defined benefit pension plan			5	7
Benefits paid			(12)	(15)
Plan settlements				(5)
Foreign currency translation			14	7
Balance at the end of the period			235	211	$ 206
Funded status			(13)	(12)
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract]
Non-current asset			37	29
Current liabilities			(1)	(1)
Non-current liabilities			(49)	(40)
Net asset (liability) recognized			(13)	(12)
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract]
Net actuarial loss			55	52
Transition obligation			1	1
Prior service cost			(1)	(1)
Net amount recognized			55	52
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract]
Projected benefit obligation			51	43
Accumulated benefit obligation			41	36
Fair value of plan assets			2	2
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost			3	3
Interest cost			11	10
Expected return on plan assets			(10)	(10)
Amortization of actuarial loss			2	2
Settlement loss				1
Net periodic benefit cost/Net postretirement benefit costs			6	6
Amount related to the amortization of the entity's accumulated actuarial loss included in accumulated other comprehensive loss that will be recognized in net pension expense in next fiscal year			(2)
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract]
Net actuarial loss (gain)			(3)
Amortization of actuarial loss			(2)
Total recorded in other comprehensive income			(5)
Net periodic benefit cost/Net postretirement benefit costs			$ 6	$ 6
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Discount rate (as a percent)			4.02%	4.34%
Rate of compensation increase (as a percent)			3.58%	3.62%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Discount rate (as a percent)			4.34%	4.57%	4.47%
Expected long-term return on plan assets (as a percent)			5.29%	5.41%	6.48%
Rate of compensation increase (as a percent)			3.62%	3.73%	3.76%
Pension Plan \| Canadian Plans
Defined Benefit Plan Disclosure [Line Items]
Number of plans amended \| item	1
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Settlement loss	$ 1
Settlement/curtailment	$ 5
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Expected long-term return on plan assets (as a percent)			4.76%
Pension Plan \| Canadian Plans \| Pro Forma
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Expected long-term return on plan assets (as a percent)		3.86%
Postemployment Retirement Benefits
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Balance at the beginning of the period		$ 70	$ 67	$ 64
Service cost			1	1	$ 1
Interest cost			3	2	3
Benefits paid			(4)	(4)
Employee contributions			1
Actuarial loss (gain)			2	2
Foreign currency translation				2
Defined Benefit Plan, Benefit Obligation, Ending Balance			70	67	64
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Funded status			(70)	(67)
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract]
Current liabilities			(4)	(4)
Non-current liabilities			(66)	(63)
Net asset (liability) recognized			(70)	(67)
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract]
Net actuarial loss			11	7
Prior service cost			(6)	(8)
Net amount recognized			5	(1)
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost			1	1	1
Interest cost			3	2	3
Amortization of prior service credit			(3)	(2)	(2)
Net periodic benefit cost/Net postretirement benefit costs			1	1	2
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract]
Net actuarial loss (gain)			2	2	(2)
Prior service cost					2
Amortization of prior service credit			3	2	2
Total recorded in other comprehensive income			5	4	2
Net periodic benefit cost/Net postretirement benefit costs			1	1	2
Total recorded in other comprehensive income and net periodic benefit cost			$ 6	$ 5	$ 4
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Discount rate (as a percent)			4.92%	5.42%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Discount rate (as a percent)			5.46%	5.30%	5.70%

Benefit Plans - Future Benefit Payments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Amounts charged to expense
Amounts charged to expense for defined contribution plans	$ 22	$ 20	$ 17
Pension Plan \| US
Plan assets
Weighted average asset allocation (as a percent)	100.00%	100.00%
Fair value of plan assets	$ 404	$ 368	354
Expected contribution in next fiscal year	2
Expected future benefit payments
2018	21
2019	20
2020	21
2021	22
2022	23
Years 2023 - 2027	124
Pension Plan \| US \| US Equity Index Funds
Plan assets
Fair value of plan assets	51	70
Pension Plan \| US \| International Equity Index Funds
Plan assets
Fair value of plan assets	55	68
Pension Plan \| US \| Long Government Fixed Income Index Bonds
Plan assets
Fair value of plan assets	$ 21
Amounts charged to expense
Fixed income securities maturity (in years)	10 years
Pension Plan \| US \| Long Duration Fixed Income Index Bonds
Plan assets
Fair value of plan assets	$ 273	$ 227
Amounts charged to expense
Fixed income securities maturity (in years)	10 years
Pension Plan \| US \| Cash, Cash Equivalents and Other [Member]
Plan assets
Weighted average asset allocation (as a percent)	1.00%	1.00%
Fair value of plan assets		$ 3
Pension Plan \| US \| Equity Securities
Plan assets
Weighted average asset allocation (as a percent)	26.00%	38.00%
Pension Plan \| US \| Debt Securities
Plan assets
Weighted average asset allocation (as a percent)	73.00%	61.00%
Pension Plan \| Non-US
Plan assets
Weighted average asset allocation (as a percent)	100.00%	100.00%
Fair value of plan assets	$ 235	$ 211	$ 206
Expected contribution in next fiscal year	3
Expected future benefit payments
2018	11
2019	12
2020	12
2021	12
2022	12
Years 2023 - 2027	70
Pension Plan \| Non-US \| US Equity Index Funds
Plan assets
Fair value of plan assets	12	11
Pension Plan \| Non-US \| Canada Equity Index Funds
Plan assets
Fair value of plan assets	22	21
Pension Plan \| Non-US \| International Equity Index Funds
Plan assets
Fair value of plan assets	52	49
Pension Plan \| Non-US \| Real Estate Equity Index Funds
Plan assets
Fair value of plan assets	5	5
Pension Plan \| Non-US \| Intermediate Fixed Income Index Funds
Plan assets
Fair value of plan assets	25	21
Pension Plan \| Non-US \| Long Duration Fixed Income Index Bonds
Plan assets
Fair value of plan assets	$ 84	$ 72
Pension Plan \| Non-US \| Cash, Cash Equivalents and Other [Member]
Plan assets
Weighted average asset allocation (as a percent)	15.00%	15.00%
Pension Plan \| Non-US \| Cash and Cash Equivalents
Plan assets
Fair value of plan assets	$ 11	$ 9
Pension Plan \| Non-US \| Equity Securities
Plan assets
Weighted average asset allocation (as a percent)	39.00%	41.00%
Pension Plan \| Non-US \| Debt Securities
Plan assets
Weighted average asset allocation (as a percent)	46.00%	44.00%
Pension Plan \| Non-US \| Other Plan Assets
Plan assets
Fair value of plan assets	$ 24	$ 23
Pension Plan \| Fair Value, Inputs, Level 1 \| Non-US
Plan assets
Fair value of plan assets	2	1
Pension Plan \| Fair Value, Inputs, Level 1 \| Non-US \| Cash and Cash Equivalents
Plan assets
Fair value of plan assets	2	1
Pension Plan \| Fair Value, Inputs, Level 2 \| US
Plan assets
Fair value of plan assets	404	368
Pension Plan \| Fair Value, Inputs, Level 2 \| US \| US Equity Index Funds
Plan assets
Fair value of plan assets	51	70
Pension Plan \| Fair Value, Inputs, Level 2 \| US \| International Equity Index Funds
Plan assets
Fair value of plan assets	55	68
Pension Plan \| Fair Value, Inputs, Level 2 \| US \| Long Government Fixed Income Index Bonds
Plan assets
Fair value of plan assets	21
Pension Plan \| Fair Value, Inputs, Level 2 \| US \| Long Duration Fixed Income Index Bonds
Plan assets
Fair value of plan assets	273	227
Pension Plan \| Fair Value, Inputs, Level 2 \| US \| Cash, Cash Equivalents and Other [Member]
Plan assets
Fair value of plan assets	4	3
Pension Plan \| Fair Value, Inputs, Level 2 \| Non-US
Plan assets
Fair value of plan assets	233	210
Pension Plan \| Fair Value, Inputs, Level 2 \| Non-US \| US Equity Index Funds
Plan assets
Fair value of plan assets	12	11
Pension Plan \| Fair Value, Inputs, Level 2 \| Non-US \| Canada Equity Index Funds
Plan assets
Fair value of plan assets	22	21
Pension Plan \| Fair Value, Inputs, Level 2 \| Non-US \| International Equity Index Funds
Plan assets
Fair value of plan assets	52	49
Pension Plan \| Fair Value, Inputs, Level 2 \| Non-US \| Real Estate Equity Index Funds
Plan assets
Fair value of plan assets	5	5
Pension Plan \| Fair Value, Inputs, Level 2 \| Non-US \| Intermediate Fixed Income Index Funds
Plan assets
Fair value of plan assets	25	21
Pension Plan \| Fair Value, Inputs, Level 2 \| Non-US \| Long Duration Fixed Income Index Bonds
Plan assets
Fair value of plan assets	84	72
Pension Plan \| Fair Value, Inputs, Level 2 \| Non-US \| Cash and Cash Equivalents
Plan assets
Fair value of plan assets	9	8
Pension Plan \| Fair Value, Inputs, Level 2 \| Non-US \| Other Plan Assets
Plan assets
Fair value of plan assets	$ 24	$ 23
Pension Plan \| Minimum \| US \| Cash, Cash Equivalents and Other [Member]
Plan assets
Plan assets allocation percentage	1.00%
Pension Plan \| Minimum \| US \| Equity Securities
Plan assets
Plan assets allocation percentage	20.00%
Pension Plan \| Minimum \| US \| Fixed Income Securities
Plan assets
Plan assets allocation percentage	57.00%
Pension Plan \| Maximum \| US \| Cash, Cash Equivalents and Other [Member]
Plan assets
Plan assets allocation percentage	3.00%
Pension Plan \| Maximum \| US \| Equity Securities
Plan assets
Plan assets allocation percentage	40.00%
Pension Plan \| Maximum \| US \| Fixed Income Securities
Plan assets
Plan assets allocation percentage	79.00%

Benefit Plans (Details) $ in Millions	12 Months Ended
Benefit Plans (Details) $ in Millions	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2017 USD ($) item	Dec. 31, 2016 USD ($)
Multiemployer Plans
Multiemployer benefit plan that company contributes to \| item				1
Multiemployer Plan contributions	$ 13.0	$ 14.0	$ 12.0
Pension Plan
Benefit obligation
Balance at the beginning of the period	555.0
Balance at the end of the period	603.0	555.0
Postemployment Retirement Benefits
Benefit obligation
Balance at the beginning of the period	67.0	64.0
Service cost	1.0	1.0	1.0
Interest cost	3.0	2.0	3.0
Actuarial loss (gain)	2.0	2.0
Benefits paid	(4.0)	(4.0)
Foreign currency translation		2.0
Defined Benefit Plan, Benefit Obligation	67.0	64.0	64.0	$ 70.0	$ 67.0
Funded status				(70.0)	(67.0)
Amounts recognized in the Consolidated Balance Sheets
Current liabilities				(4.0)	(4.0)
Non-current liabilities				(66.0)	(63.0)
Net asset (liability) recognized				(70.0)	(67.0)
Amounts recognized in Accumulated Other Comprehensive Loss, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost
Net actuarial loss				11.0	7.0
Prior service cost				(6.0)	(8.0)
Net amount recognized				5.0	$ (1.0)
Components of Net Periodic Benefit Cost
Service cost	1.0	1.0	1.0
Interest cost	3.0	2.0	3.0
Amortization of prior service credit	(3.0)	(2.0)	(2.0)
Net periodic benefit cost	1.0	1.0	2.0
Total recorded in other comprehensive income and net periodic benefit cost	6.0	5.0	4.0
Amount related to the amortization of prior service cost included in accumulated other comprehensive loss that will be recognized in net pension expense in next fiscal year				$ (2.0)
Amounts recorded in other comprehensive income and net periodic benefit cost
Net actuarial loss (gain)	2.0	2.0	(2.0)
Prior service cost			2.0
Amortization of prior service credit	3.0	2.0	2.0
Total recorded in other comprehensive income	5.0	4.0	2.0
Net periodic benefit cost	$ 1.0	$ 1.0	$ 2.0
Weighted average assumptions used to determine the company's obligations
Discount rate (as a percent)				4.92%	5.42%
Weighted average assumptions used to determine the company's net periodic benefit cost
Discount rate (as a percent)	5.46%	5.30%	5.70%
Sensitivity to Trend Assumptions
One-percentage point increase, effect on service cost and interest cost components	$ 1.0
One-percentage point increase, effect on year-end benefit obligations	7.0
One-percentage point decrease, effect on service cost and interest cost components	(1.0)
One-percentage point decrease, effect on year-end benefit obligations	(6.0)
Expected future benefit payments
2018				$ 4.0
2019				4.0
2020				4.0
2021				4.0
2022				5.0
Years 2023 - 2027				24.0
US
Benefit obligation
Service cost			$ 8.0
Interest cost			14.0
Components of Net Periodic Benefit Cost
Service cost			8.0
Interest cost			14.0
Net periodic benefit cost		$ 1.0	(2.0)
Amounts recorded in other comprehensive income and net periodic benefit cost
Net actuarial loss (gain)		10.0
Prior service cost		(6.0)
Total recorded in other comprehensive income		3.0
Net periodic benefit cost		1.0	(2.0)
Total recorded in other comprehensive income and net periodic benefit cost		4.0	(2.0)
US \| Pension Plan
Benefit obligation
Balance at the beginning of the period	367.0	359.0
Balance at the beginning of the period	367.0
Service cost	6.0	6.0
Interest cost	13.0	14.0
Actuarial loss (gain)	30.0	10.0
Benefits paid	(23.0)	(16.0)
Defined Benefit Plan, Benefit Obligation	367.0	359.0	$ 359.0		$ 367.0
Balance at the end of the period	393.0	367.0
Funded status				11.0	1.0
Amounts recognized in the Consolidated Balance Sheets
Current liabilities				(2.0)	(1.0)
Non-current liabilities				(10.0)	(10.0)
Net asset (liability) recognized				11.0	1.0
Amounts recognized in Accumulated Other Comprehensive Loss, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost
Net actuarial loss				21.0	28.0
Prior service cost				(6.0)	(6.0)
Net amount recognized				15.0	$ 22.0
Components of Net Periodic Benefit Cost
Service cost	6.0	6.0
Interest cost	13.0	14.0
Amortization of prior service credit	(1.0)
Net periodic benefit cost	(3.0)	1.0
Amount related to the amortization of the entity's accumulated actuarial loss included in accumulated other comprehensive loss that will be recognized in net pension expense in next fiscal year				$ 1.0
Amounts recorded in other comprehensive income and net periodic benefit cost
Net actuarial loss (gain)	(7.0)
Amortization of prior service credit	1.0
Total recorded in other comprehensive income	(6.0)
Net periodic benefit cost	(3.0)	$ 1.0
Total recorded in other comprehensive income and net periodic benefit cost	$ (9.0)
Weighted average assumptions used to determine the company's obligations
Discount rate (as a percent)				3.70%	4.30%
Weighted average assumptions used to determine the company's net periodic benefit cost
Discount rate (as a percent)	4.30%	4.30%	4.00%
Expected future benefit payments
2018				$ 21.0
2019				20.0
2020				21.0
2021				22.0
2022				23.0
Years 2023 - 2027				$ 124.0
US \| Postemployment Retirement Benefits
Assumptions used in measuring benefit obligation
2017 increase in per capita cost (as a percent)				6.50%
Ultimate trend (as a percent)				4.50%
Non-US
Benefit obligation
Service cost			$ 4.0
Interest cost			12.0
Components of Net Periodic Benefit Cost
Service cost			4.0
Interest cost			12.0
Net periodic benefit cost		$ 6.0	6.0
Amounts recorded in other comprehensive income and net periodic benefit cost
Net actuarial loss (gain)		6.0	(18.0)
Prior service cost		(1.0)
Total recorded in other comprehensive income		3.0	(21.0)
Net periodic benefit cost		6.0	6.0
Total recorded in other comprehensive income and net periodic benefit cost		9.0	(15.0)
Non-US \| Pension Plan
Benefit obligation
Balance at the beginning of the period	$ 223.0	219.0
Balance at the beginning of the period	223.0
Service cost	3.0	3.0
Interest cost	11.0	10.0
Actuarial loss (gain)	7.0	6.0
Benefits paid	(12.0)	(15.0)
Foreign currency translation	16.0	5.0
Defined Benefit Plan, Benefit Obligation	223.0	219.0	$ 219.0		$ 223.0
Balance at the end of the period	248.0	223.0
Funded status				$ (13.0)	(12.0)
Amounts recognized in the Consolidated Balance Sheets
Current liabilities				(1.0)	(1.0)
Non-current liabilities				(49.0)	(40.0)
Net asset (liability) recognized				(13.0)	(12.0)
Amounts recognized in Accumulated Other Comprehensive Loss, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost
Net actuarial loss				55.0	52.0
Prior service cost				(1.0)	(1.0)
Net amount recognized				55.0	$ 52.0
Components of Net Periodic Benefit Cost
Service cost	3.0	3.0
Interest cost	11.0	10.0
Net periodic benefit cost	6.0	6.0
Amount related to the amortization of the entity's accumulated actuarial loss included in accumulated other comprehensive loss that will be recognized in net pension expense in next fiscal year				$ (2.0)
Amounts recorded in other comprehensive income and net periodic benefit cost
Net actuarial loss (gain)	(3.0)
Total recorded in other comprehensive income	(5.0)
Net periodic benefit cost	6.0	$ 6.0
Total recorded in other comprehensive income and net periodic benefit cost	$ 1.0
Weighted average assumptions used to determine the company's obligations
Discount rate (as a percent)				4.02%	4.34%
Weighted average assumptions used to determine the company's net periodic benefit cost
Discount rate (as a percent)	4.34%	4.57%	4.47%
Expected future benefit payments
2018				$ 11.0
2019				12.0
2020				12.0
2021				12.0
2022				12.0
Years 2023 - 2027				$ 70.0
Canadian Plans \| Postemployment Retirement Benefits
Assumptions used in measuring benefit obligation
2017 increase in per capita cost (as a percent)				5.54%
Ultimate trend (as a percent)				4.50%
BRAZIL \| Postemployment Retirement Benefits
Assumptions used in measuring benefit obligation
2017 increase in per capita cost (as a percent)				8.41%
Ultimate trend (as a percent)				8.41%

Supplementary Information - Consolidated Balance Sheets (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Accounts receivable net:
Accounts receivable trade	$ 760	$ 751
Accounts receivable other	209	178
Allowance for doubtful accounts	(8)	(6)
Total accounts receivable — net	961	923
Inventories:
Finished and in process	495	478
Raw materials	278	260
Manufacturing supplies and other	50	51
Total inventories	823	789
Accrued liabilities:
Compensation-related costs	101	107
Income taxes payable	22	40
Unrecognized tax benefits		72
Dividends payable	44	36
Accrued interest	15	19
Taxes payable other than income taxes	37	36
Other	125	122
Total accrued liabilities	344	432
Non-current liabilities:
Employees pension, indemnity and postretirement	121	109
Other	106	49
Total non-current liabilities	$ 227	$ 158

Supplementary Information - Consolidated Statements of Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other income -net:
Insurance settlement	$ 9
Value-added tax recovery	6	$ 5	$ 4
Gain from sale of land			10
Gain on sale of plant			10
Litigation settlement			(7)
Income tax indemnification expense			(4)
Other	3	(1)	(2)
Other income - net	18	4	1
Income tax provision
Income tax indemnification expense income tax provision			4
Financing costs-net:
Interest expense, net of amounts capitalized	79	73	69
Interest income	(11)	(10)	(14)
Foreign currency transaction losses	5	3	6
Financing Costs, Net	73	66	61
Interest capitalized	$ 4	$ 4	$ 2

Supplementary Information - Consolidated Statements of Cash Flow (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Supplementary Cash Flow Information
Share-based compensation expense	$ 26	$ 28	$ 21
Other	13	16	18
Total other non-cash charges to net income	39	44	39
Interest paid	77	59	52
Income taxes paid	$ 289	$ 254	$ 158

Equity (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 12, 2014
Preferred stock:
Preferred stock, authorized shares	25,000,000	25,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred Stock, Shares Issued	0	0
Preferred stock, outstanding shares	0	0
Treasury stock:
Purchase/acquisition of treasury stock	(1,000,000)	0
Cost to repurchase common shares	$ 123
Payment made for repurchase of shares	$ 123	$ 8	$ 41
Stock Repurchase 2014 Program
Treasury stock:
Shares authorized to be repurchased				5,000,000
Stock Repurchase 2013 Program
Treasury stock:
Shares authorized to be repurchased	4,000,000

Equity (Details) - USD ($) $ in Millions	12 Months Ended
Equity (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Increase (decrease) in common stock, number of shares
Balance at the beginning of the period	77,810,875
Purchase/acquisition of treasury stock	(1,000,000)	0
Balance at the end of the period	77,810,875	77,810,875
Share-based compensation expense
Pre-tax compensation expense	$ 26	$ 28	$ 21
Income tax benefit	(8)	(11)	(8)
Total share-based compensation expense, net of income taxes	$ 18	$ 17	$ 13
Stock Incentive Plan
Shares Authorized Under Stock Incentive Plan	8,000,000
Shares available for future grants under Stock Incentive Plan	3,700,000
Common Stock Issued
Increase (decrease) in common stock, number of shares
Balance at the beginning of the period	77,811,000	77,811,000	77,811,000
Balance at the end of the period	77,811,000	77,811,000	77,811,000
Treasury Stock
Increase (decrease) in common stock, number of shares
Balance at the beginning of the period	5,397,000	6,195,000	6,489,000
Issuance of restricted stock units as compensation	(103,000)	(94,000)	(102,000)
Performance shares and other share-based awards	(75,000)	(70,000)	(75,000)
Stock options exercised	(443,000)	(636,000)	(556,000)
Purchase/acquisition of treasury stock	1,039,000	2,000	439,000
Balance at the end of the period	5,815,000	5,397,000	6,195,000
Common Stock Shares Outstanding
Increase (decrease) in common stock, number of shares
Balance at the beginning of the period	72,414,000	71,616,000	71,322,000
Issuance of restricted stock units as compensation	103,000	94,000	102,000
Performance shares and other share-based awards	75,000	70,000	75,000
Stock options exercised	443,000	636,000	556,000
Purchase/acquisition of treasury stock	(1,039,000)	(2,000)	(439,000)
Balance at the end of the period	71,996,000	72,414,000	71,616,000
Employee Stock Option
Increase (decrease) in common stock, number of shares
Stock options exercised	443,000
Share-based compensation expense
Pre-tax compensation expense	$ 7	$ 9	$ 7
Income tax benefit	(2)	(3)	(3)
Total share-based compensation expense, net of income taxes	5	6	4
Restricted Stock Units (RSUs)
Share-based compensation expense
Pre-tax compensation expense	13	12	9
Income tax benefit	(4)	(5)	(3)
Total share-based compensation expense, net of income taxes	9	7	6
Performance shares and other share-based awards
Share-based compensation expense
Pre-tax compensation expense	6	7	5
Income tax benefit	(2)	(3)	(2)
Total share-based compensation expense, net of income taxes	$ 4	$ 4	$ 3

Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Assumptions used to measure the fair value of awards
Expected life	5 years 6 months	5 years 6 months	5 years 6 months
Risk-free interest rate (as a percent)	1.90%	1.40%	1.40%
Expected volatility (as a percent)	22.50%	23.40%	25.20%
Expected dividend yield (as a percent)	1.70%	1.80%	2.00%
Adjustments for new accounting pronouncements
Provision for income taxes	$ (237)	$ (246)	$ (187)
Employee Stock Option
Stock Options
Term of options	10 years
Required service period	1 year
Period of vesting	3 years
Non-qualified options, granted	278	329
Stock option activity
Outstanding at the beginning of the period (in shares)	2,281
Granted (in shares)	278	329
Exercised (in shares)	(443)
Cancelled (in shares)	(21)
Outstanding at the end of the period (in shares)	2,095	2,281
Exercisable at the end of the period (in shares)	1,527
Share options, weighted average exercise price per share
Outstanding at the beginning of the period (in dollars per share)	$ 61.39
Granted (in dollars per share)	117.65
Exercised (in dollars per share)	46.16
Cancelled (in dollars per share)	87.50
Outstanding at the end of the period (in dollars per share)	71.81	$ 61.39
Exercisable at the end of the period (in dollars per share)	$ 59.14
Additional information pertaining to stock options
Options outstanding average remaining contractual life	5 years 10 months 13 days	5 years 11 months 5 days
Stock options exercisable average remaining contractual life	5 years 2 months 27 days
Options outstanding aggregate intrinsic value	$ 142	$ 145
Stock options exercisable aggregate intrinsic value	123
Cash received from exercise of stock options	20	$ 29	$ 21
Unrecognized compensation cost	$ 3
Weighted-average period for amortization of unrecognized compensation cost	1 year 6 months
Weighted average grant date fair value of stock options granted (per share)	$ 23.90	$ 18.73	$ 16.04
Total intrinsic value of stock options exercised	$ 35	$ 46	$ 27

Equity (Details) $ / shares in Units, shares in Thousands	1 Months Ended	12 Months Ended
Equity (Details) $ / shares in Units, shares in Thousands	Feb. 28, 2017 shares	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2016 USD ($) $ / shares shares	Dec. 31, 2015 USD ($) $ / shares shares
Other disclosures
Total share-based compensation expense included in net income		$ 26,000,000	$ 28,000,000	$ 21,000,000
Long Term Incentive Plan \| Director
Other disclosures
Amount of Directors' retainer paid in stock		$ 110,000
Percentage of additional Directors' retainer paid in stock		50
Restricted Stock Units (RSUs)
Stock Options
Vesting terms		3 years
Restricted stock unit activity
Non-vested at the beginning of the period (in shares) \| shares		429
Granted (in shares) \| shares		125
Vested (in shares) \| shares		(148)
Cancelled (in shares) \| shares		(19)
Non-vested at the end of the period (in shares) \| shares		387	429
Weighted-average fair value per share
Non-vested at the beginning of the period (in dollars per share) \| $ / shares		$ 81.04
Granted (in dollars per share) \| $ / shares		119.54
Vested (in dollars per share) \| $ / shares		65.03
Cancelled (in dollars per share) \| $ / shares		95.17
Non-vested at the end of the period (in dollars per share) \| $ / shares		$ 100.13	$ 81.04
Fair value of awards vested during the year		$ 18,000,000	$ 15,000,000	13,000,000
Unrecognized compensation cost		$ 13,000,000
Weighted-average period for amortization of unrecognized compensation cost		1 year 8 months 12 days
Other disclosures
Service period over which compensation expense would be amortized		1 year
Compensation cost related to unvested restricted share and restricted stock units and performance shares included in share-based payments subject to redemption on the Balance Sheet		$ 25,000,000	21,000,000
Total share-based compensation expense included in net income		$ 13,000,000	12,000,000	9,000,000
Restricted Stock Units (RSUs) \| Compensation Arrangement \| Director
Other disclosures
Awards outstanding (in shares) \| shares		182
Carrying value of share units outstanding		$ 11,000,000
Total share-based compensation expense included in net income		$ 1,000,000	$ 1,000,000	$ 1,000,000
Performance Shares award \| Long Term Incentive Plan \| Senior Management
Stock Options
Vesting terms		3 years
Restricted stock unit activity
Granted (in shares) \| shares		38	44	47
Vested (in shares) \| shares	(115)
Cancelled (in shares) \| shares		(3)
Weighted-average fair value per share
Granted (in dollars per share) \| $ / shares		$ 114.08	$ 131.34	$ 77.54
Unrecognized compensation cost		$ 3,000,000
Award payout achieved (as a percent)	200
Remaining requisite service period (in years)		1 year 8 months 12 days
Other disclosures
Compensation cost related to unvested restricted share and restricted stock units and performance shares included in share-based payments subject to redemption on the Balance Sheet		$ 11,000,000	$ 9,000,000
Performance shares calculation period (in years)		3 years
Performance Shares award \| Long Term Incentive Plan \| Senior Management \| Minimum
Other disclosures
Performance shares available for vesting (as a percent)		0.00%
Performance Shares award \| Long Term Incentive Plan \| Senior Management \| Maximum
Other disclosures
Performance shares available for vesting (as a percent)		200.00%
Performance Shares Award Granted in 2017 \| Long Term Incentive Plan \| Senior Management
Weighted-average fair value per share
Award payout achieved (as a percent)		127
Performance Shares Award Granted in 2016 \| Long Term Incentive Plan \| Senior Management
Weighted-average fair value per share
Award payout achieved (as a percent)		175
Performance Shares Award Granted in 2015 \| Long Term Incentive Plan \| Senior Management
Weighted-average fair value per share
Award payout achieved (as a percent)		200

Equity (Details) - USD ($) $ in Millions	12 Months Ended
Equity (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at the beginning of the period	$ (1,071)	$ (1,102)	$ (782)
Other comprehensive (loss) income before reclassification adjustments	52	(13)	(367)
Amount reclassified from accumulated OCI	(4)	(50)	(47)
Tax benefit (provision)	2	(6)
Net other comprehensive income (loss)	58	31	(320)
Balance at end of the period	(1,013)	(1,071)	(1,102)
Cumulative Translation Adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at the beginning of the period	(1,008)	(1,025)	(701)
Other comprehensive (loss) income before reclassification adjustments	57	17	(324)
Net other comprehensive income (loss)	57	17	(324)
Balance at end of the period	(951)	(1,008)	(1,025)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at the beginning of the period	(7)	(29)	(19)
Other comprehensive (loss) income before reclassification adjustments	(16)	(17)	(61)
Amount reclassified from accumulated OCI	(6)	(49)	(46)
Tax benefit (provision)	4	(10)	5
Net other comprehensive income (loss)	(6)	22	(10)
Balance at end of the period	(13)	(7)	(29)
Pension and Postretirement Adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at the beginning of the period	(56)	(47)	(61)
Other comprehensive (loss) income before reclassification adjustments	8	(14)	18
Amount reclassified from accumulated OCI	2	(1)	(1)
Tax benefit (provision)	(1)	4	(5)
Net other comprehensive income (loss)	5	(9)	14
Balance at end of the period	(51)	(56)	(47)
Unrealized (Loss) Gain on Investment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at the beginning of the period		(1)	(1)
Other comprehensive (loss) income before reclassification adjustments	3	1
Tax benefit (provision)	(1)
Net other comprehensive income (loss)	2	$ 1
Balance at end of the period	$ 2		$ (1)

Equity (Details) - USD ($) $ in Millions	12 Months Ended
Equity (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of sales	$ 4,359	$ 4,302	$ 4,379
Financing costs, net	73	66	61
Total before tax reclassifications	(4)	(50)	(47)
Tax benefit	1	16	14
Total after-tax reclassifications	(3)	(34)	(33)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total before tax reclassifications	(6)	(49)	(46)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges \| Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Gains (losses) related to pension and other postretirement obligations	2	(1)	(1)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges \| Reclassification out of Accumulated Other Comprehensive Income \| Commodity Contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of sales	(5)	(45)	(43)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges \| Reclassification out of Accumulated Other Comprehensive Income \| Foreign Currency Contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of sales	1	(2)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges \| Reclassification out of Accumulated Other Comprehensive Income \| Interest Rate Contract
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Financing costs, net	$ (2)	$ (2)	$ (3)

Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Basic EPS:
Net Income Available to Ingredion - basic									$ 519	$ 485	$ 402
Weighted average number of shares outstanding, basic									72,000,000	72,300,000	71,600,000
Basic earnings per common share of Ingredion (in dollars per share)	$ 1.37	$ 2.31	$ 1.81	$ 1.72	$ 1.29	$ 1.98	$ 1.62	$ 1.81	$ 7.21	$ 6.70	$ 5.62
Effect of Dilutive Securities:
Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards									1,500,000	1,800,000	1,400,000
Diluted EPS:
Net Income Available to Ingredion - diluted									$ 519	$ 485	$ 402
Weighted Average Number of Shares Outstanding, Diluted, Total									73,500,000	74,100,000	73,000,000
Earnings Per Share, Diluted	$ 1.35	$ 2.26	$ 1.78	$ 1.68	$ 1.26	$ 1.93	$ 1.58	$ 1.77	$ 7.06	$ 6.55	$ 5.51
Antidilutive securities excluded in calculation of diluted EPS:
Antidilutive securities excluded from computation of earnings per share amount									300,000	0	300,000

Segment Information (Details) $ in Millions	3 Months Ended									12 Months Ended
Segment Information (Details) $ in Millions	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2017 USD ($) item	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Segment information
Number of reportable business segments \| item										4
Net sales	$ 1,437	$ 1,485	$ 1,457	$ 1,453	$ 1,399	$ 1,489	$ 1,455	$ 1,360		$ 5,832	$ 5,704	$ 5,621
Subtotal										884	830	705
Restructuring charges	(10)	(5)	(5)	(11)	(2)	$ (2)	$ (10)			(38)	(19)	(28)
Acquisition / integration costs	(1)	$ (1)		(1)	(1)			$ (1)		(4)	(3)	(10)
Charge for fair value markup of acquired inventory			$ (3)	$ (3)						(9)		(10)
Insurance settlement										9
Litigation settlement												(7)
Gain from sale of land												10
Total operating income										842	808	660
Financing costs, net										73	66	61
Income before income taxes										769	742	599
Expense relating to tax indemnification agreement												4
Income tax indemnification expense income tax provision												4
Other restructuring charges including refinement of prior year restructuring activities										2
Total Assets	6,080				5,782					6,080	5,782
Depreciation and amortization										209	196	194
Mechanical stores expense										57	57	57
Capital expenditures										314	284	280
Write-off of impaired goodwill	0				0				$ 0
Long-lived assets	2,360				2,237					2,360	2,237
US
Segment information
Net sales										2,191	2,117	1,983
Long-lived assets	977				955					977	955
MEXICO
Segment information
Net sales										952	955	945
Long-lived assets	306				303					306	303
BRAZIL
Segment information
Net sales										519	522	452
Long-lived assets	235				245					235	245
CANADA
Segment information
Net sales										385	375	417
Long-lived assets	179				147					179	147
KOREA
Segment information
Net sales										275	266	276
Long-lived assets	109				84					109	84
THAILAND
Segment information
Long-lived assets	137				119					137	119
GERMANY
Segment information
Long-lived assets	133				106					133	106
Other Countries
Segment information
Net sales										1,510	1,469	1,548
Long-lived assets	284				278					284	278
Operating Segments \| North America
Segment information
Net sales										3,529	3,447	3,345
Subtotal										661	610	479
Total Assets	3,967				3,796					3,967	3,796
Depreciation and amortization										140	130	123
Mechanical stores expense										37	37	36
Capital expenditures										180	167	158
Operating Segments \| South America
Segment information
Net sales										1,007	1,010	1,013
Subtotal										80	89	101
Total Assets	812				809					812	809
Depreciation and amortization										27	26	30
Mechanical stores expense										12	12	13
Capital expenditures										50	56	61
Operating Segments \| Asia Pacific
Segment information
Net sales										740	709	733
Subtotal										112	111	107
Total Assets	774				697					774	697
Depreciation and amortization										25	23	23
Mechanical stores expense										5	5	5
Capital expenditures										51	41	36
Operating Segments \| EMEA
Segment information
Net sales										556	538	530
Subtotal										113	106	93
Total Assets	527				$ 480					527	480
Depreciation and amortization										17	17	18
Mechanical stores expense										3	3	3
Capital expenditures										33	20	25
Corporate, Non -Segment
Segment information
Subtotal										(82)	(86)	(75)
Expense relating to tax indemnification agreement												4
Income tax indemnification expense income tax provision												4
Argentina employee-related severance
Segment information
Restructuring charges										(17)
Stevia Leaf Extraction Process in Brazil
Segment information
Restructuring charges	$ (13)									(13)
Finance transformation initiative in North America
Segment information
Restructuring charges										(6)
Finance transformation initiative in North America \| Employee Severance related costs
Segment information
Restructuring charges										$ (3)
IT transformation \| Employee Severance And Other Costs
Segment information
Restructuring charges											(11)
Optimization Initiative Of North And South America \| Employee Severance related costs
Segment information
Restructuring charges											(6)
Port Colborne Ontario Canada Plant \| Facility Closing
Segment information
Restructuring charges											$ (2)
Port Colborne Ontario Canada Plant \| Facility Closing \| CANADA
Segment information
Restructuring charges												(4)
Plant Closing In Trombudo Central And Conchal \| Facility Closing
Segment information
Restructuring charges												(12)
Penford
Segment information
Restructuring charges												$ (12)

Commitments and Contingencies (Details) $ in Millions	12 Months Ended
Commitments and Contingencies (Details) $ in Millions	Dec. 31, 2017 USD ($)
BRAZIL
Commitments and Contingencies
Reserve maintained for labor claims	$ 5

Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Data (Unaudited)
Net sales before shipping and handling costs	$ 1,527	$ 1,574	$ 1,542	$ 1,537	$ 1,484	$ 1,569	$ 1,533	$ 1,434	$ 6,180	$ 6,022	$ 5,958
Less: shipping and handling costs	90	89	85	84	85	80	78	74	348	318	337
Net sales	1,437	1,485	1,457	1,453	1,399	1,489	1,455	1,360	5,832	5,704	5,621
Gross profit	360	388	373	352	339	369	355	339	1,473	1,402	1,242
Net income attributable to Ingredion	$ 99	$ 166	$ 130	$ 124	$ 94	$ 143	$ 117	$ 130	$ 519	$ 485	$ 402
Basic earnings per common share of Ingredion (in dollars per share)	$ 1.37	$ 2.31	$ 1.81	$ 1.72	$ 1.29	$ 1.98	$ 1.62	$ 1.81	$ 7.21	$ 6.70	$ 5.62
Diluted earnings per common share of Ingredion (in dollars per share)	1.35	2.26	1.78	1.68	1.26	1.93	1.58	1.77	$ 7.06	$ 6.55	$ 5.51
Per share dividends declared	$ 0.60	$ 0.60	$ 0.50	$ 0.50	$ 0.50	$ 0.50	$ 0.45	$ 0.45
Restructuring charges	$ 10	$ 5	$ 5	$ 11	$ 2	$ 2	$ 10		$ 38	$ 19	$ 28
Charge for fair value markup of acquired inventory			$ 3	3					9		10
Pre-tax Acquisition and integration costs	1	1		$ 1	1			$ 1	4	$ 3	$ 10
(Gain) loss on income tax settlement		$ (10)			$ 27
TCJA provisional tax benefit	23								$ 23
Gain on proceeds from insurance	$ 6