XML 53 R37.htm IDEA: XBRL DOCUMENT
v3.3.1.900

DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2015
Notional Amounts of Outstanding Derivative Positions | The notional amounts of our outstanding derivative positions were as follows as of December 31, 2015 and 2014 (in millions):
|  |  | 2015 |  | 2014
Currency Hedges: |  |  |  |  |
Euro | EUR |  | 3,750 |  |  | 2,833 |
British Pound Sterling | GBP |  | 1,140 |  |  | 1,149 |
Canadian Dollar | CAD |  | 177 |  |  | 293 |
Indian Rupee | INR |  | — |  |  | 85 |
Malaysian Ringgit | MYR |  | — |  |  | 150 |
Mexican Peso | MXN |  | 3,863 |  |  | 152 |
Japanese Yen | JPY |  | 20,000 |  |  | — |
Interest Rate Hedges: |  |  |  |  |
Fixed to Floating Interest Rate Swaps | USD |  | 5,799 |  |  | 5,799 |
Floating to Fixed Interest Rate Swaps | USD |  | 778 |  |  | 779 |
Interest Rate Basis Swaps | USD |  | — |  |  | 1,500 |
Investment Market Price Hedges: |  |  |  |  |
Marketable Securities | EUR |  | 496 |  |  | — |
Balance sheet location of derivative assets and liabilities and their related fair values | The following table indicates the location on the consolidated balance sheets in which our derivative assets and liabilities have been recognized, and the related fair values of those derivatives as of December 31, 2015 and 2014 (in millions). The table is segregated between those derivative instruments that qualify and are designated as hedging instruments and those that are not, as well as by type of contract and whether the derivative is in an asset or liability position. We have master netting arrangements with substantially all of our counterparties giving us the right of offset for our derivative positions. However, we have not elected to offset the fair value positions of our derivative contracts recorded on our consolidated balance sheets. The columns labeled "net amounts if right of offset had been applied" indicate the potential net fair value positions by type of contract and location on the consolidated balance sheets had we elected to apply the right of offset.
|  |  | Gross Amounts Presented in Consolidated Balance Sheets |  | Net Amounts if Right of Offset had been Applied
Asset Derivatives | Balance Sheet Location |  | 2015 |  | 2014 |  | 2015 |  | 2014
Derivatives designated as hedges: |  |  |  |  |  |  |  |  |
Foreign exchange contracts | Other current assets |  | $ | 408 |  |  | $ | 204 |  |  | $ | 408 |  |  | $ | 204 |
Foreign exchange contracts | Other non-current assets |  | 92 |  |  | 229 |  |  | 92 |  |  | 229 |
Interest rate contracts | Other non-current assets |  | 204 |  |  | 227 |  |  | 185 |  |  | 194 |
Derivatives not designated as hedges: |  |  |  |  |  |  |  |  |
Foreign exchange contracts | Other current assets |  | 2 |  |  | 2 |  |  | — |  |  | 2 |
Investment market price contracts | Other current assets |  | 5 |  |  | — |  |  | — |  |  | — |
Interest rate contracts | Other non-current assets |  | 57 |  |  | 59 |  |  | 53 |  |  | 57 |
Total Asset Derivatives |  |  | $ | 768 |  |  | $ | 721 |  |  | $ | 738 |  |  | $ | 686 |
|  |  | Gross Amounts Presented in Consolidated Balance Sheets |  | Net Amounts if Right of Offset had been Applied
Liability Derivatives | Balance Sheet Location |  | 2015 |  | 2014 |  | 2015 |  | 2014
Derivatives Designated As Hedges: |  |  |  |  |  |  |  |  |
Foreign exchange contracts | Other non-current liabilities |  | — |  |  | 34 |  |  | — |  |  | 34 |
Interest rate contracts | Other non-current liabilities |  | 19 |  |  | 35 |  |  | — |  |  | 2 |
Derivatives Not Designated As Hedges: |  |  |  |  |  |  |  |  |
Foreign exchange contracts | Other current liabilities |  | 12 |  |  | — |  |  | 10 |  |  | — |
Interest rate contracts | Other current liabilities |  | — |  |  | 1 |  |  | — |  |  | 1 |
Investment market price contracts | Other current liabilities |  | 9 |  |  | — |  |  | 4 |  |  | — |
Interest rate contracts | Other non-current liabilities |  | 13 |  |  | 7 |  |  | 9 |  |  | 5 |
Total Liability Derivatives |  |  | $ | 53 |  |  | $ | 77 |  |  | $ | 23 |  |  | $ | 42 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table indicates the amount of gains and losses that have been recognized in AOCI within "foreign currency translation gain (loss)" for the years ended December 31, 2015 and 2014 for those instruments designated as net investment hedges (in millions):
Non-derivative Instruments in Net Investment Hedging Relationships |  | Amount of Gain (Loss) Recognized in AOCI on Debt (Effective Portion)
| 2015 |  | 2014
Foreign denominated debt |  | $ | (33 | ) |  | $ | — |
Total |  | $ | (33 | ) |  | $ | — |
The following table indicates the amount of gains and losses that have been recognized in AOCI within "unrealized gain (loss) on cash flow hedges" for the years ended December 31, 2015 and 2014 for those derivatives designated as cash flow hedges (in millions):
Derivative Instruments in Cash Flow Hedging Relationships |  | Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)
| 2015 |  | 2014
Interest rate contracts |  | $ | (1 | ) |  | $ | (5 | )
Foreign exchange contracts |  | 275 |  |  | 358 |
Total |  | $ | 274 |  |  | $ | 353 |
Fair Values of Derivative Assets and Liabilities by Hedge Type | The fair values of our derivative assets and liabilities as of December 31, 2015 and 2014 by hedge type are as follows (in millions):
|  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
2015 |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |
Foreign Exchange Contracts |  | $ | — |  |  | $ | 502 |  |  | $ | — |  |  | $ | 502 |
Investment Market Price Contracts |  | — |  |  | 5 |  |  | — |  |  | 5 |
Interest Rate Contracts |  | — |  |  | 261 |  |  | — |  |  | 261 |
Total |  | $ | — |  |  | $ | 768 |  |  | $ | — |  |  | $ | 768 |
Liabilities: |  |  |  |  |  |  |  |
Foreign Exchange Contracts |  | $ | — |  |  | $ | 12 |  |  | $ | — |  |  | $ | 12 |
Investment Market Price Contracts |  | — |  |  | 9 |  |  | — |  |  | 9 |
Interest Rate Contracts |  | — |  |  | 32 |  |  | — |  |  | 32 |
Total |  | $ | — |  |  | $ | 53 |  |  | $ | — |  |  | $ | 53 |
|  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
2014 |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |
Foreign Exchange Contracts |  | $ | — |  |  | $ | 435 |  |  | $ | — |  |  | $ | 435 |
Investment Market Price Contracts |  | — |  |  | — |  |  | — |  |  | — |
Interest Rate Contracts |  | — |  |  | 286 |  |  | — |  |  | 286 |
Total |  | $ | — |  |  | $ | 721 |  |  | $ | — |  |  | $ | 721 |
Liabilities: |  |  |  |  |  |  |  |
Foreign Exchange Contracts |  | $ | — |  |  | $ | 34 |  |  | $ | — |  |  | $ | 34 |
Investment Market Price Contracts |  | — |  |  | — |  |  | — |  |  | — |
Interest Rate Contracts |  | — |  |  | 43 |  |  | — |  |  | 43 |
Total |  | $ | — |  |  | $ | 77 |  |  | $ | — |  |  | $ | 77 |
Designated as Hedging Instrument |
Amount and Location in the Income Statement for Derivatives Designated as Fair Value Hedges | The following table indicates the amount and location in the statements of consolidated income in which derivative gains and losses, as well as the associated gains and losses on the underlying exposure, have been recognized for those derivatives designated as fair value hedges for the years ended December 31, 2015 and 2014 (in millions):
Derivative Instruments in Fair Value Hedging Relationships |  | Location of Gain (Loss) Recognized in Income |  | Amount of Gain (Loss) Recognized in Income |  | Hedged Items in Fair Value Hedging Relationships |  | Location of Gain (Loss) Recognized in Income |  | Amount of Gain (Loss) Recognized in Income
|  | 2015 |  | 2014 |  |  |  | 2015 |  | 2014
Interest rate contracts |  | Interest Expense |  | $ | (7 | ) |  | $ | 90 |  |  | Fixed-Rate Debt and Capital Leases |  | Interest Expense |  | $ | 7 |  |  | $ | (90 | )
Not Designated as Hedging Instrument |
Amount and Location in the Income Statement for Derivatives Designated as Fair Value Hedges | The following is a summary of the amounts recorded in the statements of consolidated income related to fair value changes and settlements of these foreign currency forwards, interest rate swaps, and commodity contracts not designated as hedges for the years ended December 31, 2015 and 2014 (in millions):
Derivative Instruments Not Designated in Hedging Relationships |  | Location of Gain (Loss) Recognized in Income |  | Amount of Gain (Loss) Recognized in Income
|  | 2015 |  | 2014
Commodity contracts |  | Fuel Expense |  | $ | (2 | ) |  | $ | (15 | )
Foreign exchange contracts |  | Other Operating Expenses |  | 22 |  |  | 27 |
Foreign exchange contracts |  | Investment Income |  | 43 |  |  | 7 |
Investment market price contracts |  | Investment Income |  | (5 | ) |  | — |
Foreign exchange contracts |  | Interest Expense |  | (14 | ) |  | — |
Interest rate contracts |  | Interest Expense |  | (7 | ) |  | (5 | )
Total |  |  |  | $ | 37 |  |  | $ | 14 |

X
- Definition Tabular disclosure of the effective portion of the gains and losses on derivative instruments designated (and non-derivative instruments) designated and qualifying in cash flow hedges and net investment hedges that was recognized in other comprehensive income (loss) during the current period. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsEffectOnOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624171-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5618551-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the notional amounts of outstanding derivative positions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579245-113959 + Details
Name: | us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_HedgingDesignationAxis=us-gaap_DesignatedAsHedgingInstrumentMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |

X
- Details
Name: | us-gaap_HedgingDesignationAxis=us-gaap_NondesignatedMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |