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Accumulated Other Comprehensive Income (Loss)
 6 Months Ended
Jun. 30, 2014
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)
6. Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) are as follows (in millions):

 

     Currency
Translation
Adjustments		      Derivative
Financial
Instruments,
Net of Tax		     Defined
Benefit
Plans,
Net of Tax		     Total  

Balance at December 31, 2013

    $ 17       $ 5      $ (26 )    $ (4 ) 

Accumulated other comprehensive income (loss) before reclassifications

      63         6        —          69   

Amounts reclassified from accumulated other comprehensive income (loss)

      —           (17 )      —          (17 ) 
  

 

 

     

 

 

    

 

 

    

 

 

  

Balance at June 30, 2014

    $ 80       $ (6 )    $ (26 )    $ 48   
  

 

 

     

 

 

    

 

 

    

 

 

  

The components of amounts reclassified from accumulated other comprehensive income (loss) are as follows (in millions):

 

     Three Months Ended June 30,  
     2014     2013  
     Currency
Translation
Adjustments		      Derivative
Financial
Instruments		     Defined
Benefit
Plans		      Total     Currency
Translation
Adjustments		     Derivative
Financial
Instruments		     Defined
Benefit
Plans		      Total  

Revenue

    $ —         $ (8 )    $ —         $ (17 )    $ —        $ (2 )    $ —         $ (2 ) 

Cost of revenue

      —           (4 )      —           (2 )      —          4        —           4   

Other income (expense), net

      —           —          —           —          (25 )      —          —           (25 ) 

Tax effect

      —           2        —           4        —          —          —           —     
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  
   $ —         $ (10 )    $ —         $ (15 )    $ (25 )    $ 2      $ —         $ (23 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

 

     Six Months Ended June 30,  
     2014     2013  
     Currency
Translation
Adjustments		      Derivative
Financial
Instruments		     Defined
Benefit
Plans		      Total     Currency
Translation
Adjustments		     Derivative
Financial
Instruments		     Defined
Benefit
Plans		      Total  

Revenue

    $ —         $ (21 )    $ —         $ (21 )    $ —        $ (4 )    $ —         $ (4 ) 

Cost of revenue

      —           (1 )      —           (1 )      —          1        —           1   

Other income (expense), net

      —           —          —           —          (25 )      —          —           (25 ) 

Tax effect

      —           5        —           5        —          1        —           1   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  
   $ —         $ (17 )    $ —         $ (17 )    $ (25 )    $ (2 )    $ —         $ (27 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

 

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, currency translation adjustments resulting from the process of translating the entities’ financial statements into the reporting currency are reported in Other Comprehensive Income or Loss in accordance with ASC Topic 830 “Foreign Currency Matters” (“ASC Topic 830”). For the three and six months ended June 30, 2014, a majority of these local currencies strengthened against the U.S. dollar resulting in net Other Comprehensive Income of $114 million and $63 million, respectively, upon the translation from local currencies to the U.S. dollar. For the three and six months ended June 30, 2013, a majority of these local currencies weakened against the U.S. dollar resulting in net Other Comprehensive Loss of $96 million and $213 million, respectively, upon the translation from local currencies 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 or Loss, net of tax, until the underlying transactions to which they are designed to hedge are realized. The movement in Other Comprehensive Income or Loss from period to period will be the result of the combination of changes in fair value for open derivatives and the outflow of Other Comprehensive Income or Loss related to cumulative changes in the fair value of derivatives that have settled in the current or prior periods. The accumulated effect was Other Comprehensive Loss of $25 million (net of tax of $10 million) and $11 million (net of tax of $4 million) for the three and six months ended June 30, 2014, respectively. The accumulated effect was Other Comprehensive Loss of $22 million (net of tax of $8 million) and $70 million (net of tax of $27 million) for the three and six months ended June 30, 2013, respectively.