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Comprehensive Income
 6 Months Ended
Jun. 30, 2011
Comprehensive Income [Abstract]  
Comprehensive Income
5. Comprehensive Income
The components of comprehensive income are as follows (in millions):
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2011     2010     2011     2010  
Net income
  $ 480     $ 399     $ 884     $ 818  
Currency translation adjustments
    28       (62 )     92       (76 )
Changes in derivative financial instruments, net of tax
    5       (55 )     42       (81 )
 
                       
Comprehensive income
    513       282       1,018       661  
Comprehensive loss attributable to noncontrolling interest
    (1 )     (2 )     (4 )     (5 )
 
                       
Comprehensive income attributable to Company
  $ 514     $ 284     $ 1,022     $ 666  
 
                       
The Company’s reporting currency is the U.S. dollar. A majority of the Company’s international entities in which there is a substantial investment have the local currency as their functional currency. As a result, translation adjustments resulting from the process of translating the entities’ financial statements into the reporting currency are reported in Other Comprehensive Income in accordance with ASC Topic 830 “Foreign Currency Matters” (“ASC Topic 830”). For the three and six months ended June 30, 2011, a majority of these local currencies strengthened against the U.S. dollar resulting in a net increase to Other Comprehensive Income of $28 million and $92 million, respectively, upon the translation of their financial statements from their local currency to the U.S. dollar.
The effect of changes in the fair values of derivatives designated as cash flow hedges are accumulated in Other Comprehensive Income, net of tax, until the underlying transactions to which they are designed to hedge are realized. The movement in Other Comprehensive Income from period to period will be the result of the combination of changes in fair value for open derivatives and the outflow of accumulated Other Comprehensive Income related to the fair value of derivatives that have settled in the current or prior periods. The accumulated effect is an increase in Other Comprehensive Income of $5 million (net of tax of $2 million) and $42 million (net of tax of $16 million) for the three and six months ended June 30, 2011, respectively.