XML 24 R13.htm IDEA: XBRL DOCUMENT v3.7.0.1
Financial Instruments
 3 Months Ended
Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Instruments
Financial Instruments

As of March 31, 2017, we had no interest rate swap transactions.

A summary of the effect of derivative instruments on the Company’s Condensed Consolidated Statements of Comprehensive Earnings (Unaudited) and recognized in AOCE for the three months ended March 31, 2017 and 2016 are as follows (in millions):

 
 
Amount of gain (loss)
recognized in AOCE on
derivatives
 
 
 
Amount of gain (loss) reclassified
from AOCE into
income
Derivatives in cash
 
Three months ended
 
Location of loss
 
Three months ended
flow hedging
 
March 31,
 
reclassified from
 
March 31,
relationships
 
2017
 
2016
 
AOCE into income
 
2017
 
2016
Interest rate derivative contracts
 
$
—

 
$
(9
)
 
Interest expense
 
$
—

 
$
(2
)

Approximately $1 million of the balance in AOCE as of March 31, 2017, is expected to be reclassified into income over the next twelve months.

We use currency forward contracts to manage our exposure to fluctuations in costs caused by variations in Indian Rupee (“INR”) exchange rates. As of March 31, 2017 the notional amount of these derivatives was approximately $2 million and the fair value was nominal. These INR forward contracts are designated as cash flow hedges. The fair value of these currency forward contracts is determined using currency exchange market rates, obtained from reliable, independent, third party banks, as of the balance sheet date. The fair value of forward contracts is subject to changes in currency exchange rates. The Company has no ineffectiveness related to its use of currency forward contracts in connection with INR cash flow hedges.