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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2013
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Outstanding Foreign Currency Forward Contracts

The Company had the following outstanding foreign currency forward contracts that were entered into to hedge nonfunctional currency cash flows from forecasted revenues and expenses (in millions):

 

     Currency Denomination  
     September 30,      December 31,  

Foreign Currency

    2013      2012  

Norwegian Krone

    NOK 9,631       NOK 6,281   

U.S. Dollar

    $ 426       $ 331   

Euro

    € 376       € 389   

Danish Krone

    DKK 222       DKK 134   

British Pound Sterling

    £ 26       £ 6   

Singapore Dollar

    SGD 15       SGD 14   

The Company had the following outstanding foreign currency forward contracts that hedge the fair value of nonfunctional currency monetary accounts (in millions):

 

     Currency Denomination  
     September 30,      December 31,  

Foreign Currency

    2013      2012  

Norwegian Krone

    NOK 2,121       NOK 1,684   

Russian Ruble

    RUB 1,779       RUB 1,467   

U.S. Dollar

    $ 532       $ 967   

Danish Krone

    DKK 261       DKK 177   

Euro

    € 214       € 225   

Brazilian Real

    BRL 56       BRL 135   

British Pound Sterling

    £ 23       £ 9   

Singapore Dollar

    SGD 16       SGD 24   

Swedish Krone

    SEK 2       SEK 5   

Canadian Dollar

    CAD 2       CAD 2   

Derivative Instruments and their Balance Sheet Classifications

The Company has the following gross fair values of its derivative instruments and their balance sheet classifications (in millions):

 

   

Asset Derivatives

    

Liability Derivatives

  
        Fair Value         Fair Value  
    Balance Sheet   September 30,     December 31,     Balance Sheet   September 30,     December 31,  
   

Location

   2013     2012    

Location

   2013     2012  

Derivatives designated as hedging instruments under ASC Topic 815

            

Foreign exchange contracts

   Prepaid and other current assets   $ 36      $ 57      Accrued liabilities   $ 8      $ 5   

Foreign exchange contracts

   Other Assets     12        24      Other Liabilities     10        1   
   

 

 

    

 

 

      

 

 

    

 

 

  

Total derivatives designated as hedging instruments under ASC Topic 815

     $ 48      $ 81        $ 18      $ 6   
   

 

 

    

 

 

      

 

 

    

 

 

  

Derivatives not designated as hedging instruments under ASC Topic 815

            

Foreign exchange contracts

   Prepaid and other current assets   $ 15      $ 24      Accrued liabilities   $ 8      $ 13   
   

 

 

    

 

 

      

 

 

    

 

 

  

Total derivatives not designated as hedging instruments under ASC Topic 815

     $ 15      $ 24        $ 8      $ 13   
   

 

 

    

 

 

      

 

 

    

 

 

  

Total derivatives

     $ 63      $ 105        $ 26      $ 19   
   

 

 

    

 

 

      

 

 

    

 

 

  
Effect of Derivative Instruments on Consolidated Statements of Income

The Effect of Derivative Instruments on the Consolidated Statements of Income

($ in millions)

 

                                        Location of Gain (Loss)            
                                        Recognized in Income on   Amount of Gain (Loss)  
                Location of Gain (Loss)                 Derivative (Ineffective   Recognized in Income on  
                Reclassified from     Amount of Gain (Loss)     Portion and Amount   Derivative (Ineffective  
Derivatives in ASC Topic 815   Amount of Gain (Loss)     Accumulated OCI into     Reclassified from     Excluded from   Portion and Amount  
Cash Flow Hedging   Recognized in OCI on     Income     Accumulated OCI into     Effectiveness   Excluded from  

Relationships

   Derivative (Effective Portion) (a)     (Effective Portion)     Income (Effective Portion)     Testing)   Effectiveness Testing) (b)  
    Nine Months Ended
September 30,		                 Nine Months Ended
September 30,		         Nine Months Ended
September 30,		  
    2013     2012                 2013     2012         2013     2012  
        Revenue        7        (9 )       

Foreign exchange contracts

     (32 )      69        Cost of revenue        (8 )      (22 )    Other income (expense), net     6        5   
 

 

 

    

 

 

        

 

 

    

 

 

      

 

 

    

 

 

  

Total

     (32 )      69          (1 )      (31 )        6        5   
 

 

 

    

 

 

        

 

 

    

 

 

      

 

 

    

 

 

  
Derivatives Not Designated as   Location of Gain (Loss)     Amount of Gain (Loss)                              
Hedging Instruments under   Recognized in Income     Recognized in Income on                              

ASC Topic 815

   on Derivative     Derivative                              
                Nine Months Ended
September 30,		                              
                2013     2012                              

Foreign exchange contracts

     Other income (expense), net        13        8             
     

 

 

    

 

 

            

Total

         13        8             
     

 

 

    

 

 

            

 

(a) The Company expects $(26) million of the accumulated other comprehensive income (loss) to be reclassified into earnings within the next twelve months offset by gains (losses) from the underlying transactions resulting in no impact to earnings or cash flow.
(b) The amount of gain (loss) recognized in income represents nil and $(1) million related to the ineffective portion of the hedging relationships for the nine months ended September 30, 2013 and 2012, respectively, and $6 million and $6 million related to the amount excluded from the assessment of the hedge effectiveness for the nine months ended September 30, 2013 and 2012, respectively.