Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2014

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
Foreign Currency	September 30, 2014		December 31, 2013
Norwegian Krone	NOK	11,430	NOK	10,503
Euro	€	560	€	406
U.S. Dollar	$	350	$	357
Danish Krone	DKK	283	DKK	278
Mexican peso	MXN	129	MXN	—
Singapore Dollar	SGD	51	SGD	17
British Pound Sterling	£	32	£	23
Canadian Dollar	CAD	14	CAD	16

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


	Currency Denomination
Foreign Currency	September 30, 2014		December 31, 2013
Norwegian Krone	NOK	2,747	NOK	3,257
Russian Ruble	RUB	1,575	RUB	2,149
U.S. Dollar	$	1,057	$	715
Danish Krone	DKK	438	DKK	177
Euro	€	413	€	310
Mexican Peso	MXN	134	MXN	—
British Pound Sterling	£	31	£	14
Swedish Krone	SEK	9	SEK	4
Canadian Dollar	CAD	4	CAD	3
Singapore Dollar	SGD	3	SGD	3

Derivative Instruments and their Balance Sheet Classifications

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


	Asset Derivatives					Liability Derivatives
		Fair Value					Fair Value
	Balance Sheet	September 30,		December 31,		Balance Sheet	September 30,		December 31,
	Location	2014		2013		Location	2014		2013
Derivatives designated as hedging instruments under ASC Topic 815

Foreign exchange contracts	Prepaid and other current assets	$	9	$	35	Accrued liabilities	$	97	$	18
Foreign exchange contracts	Other Assets		6		5	Other Liabilities		45		9


Total derivatives designated as hedging instruments under ASC Topic 815		$	15	$	40		$	142	$	27


Derivatives not designated as hedging instruments under ASC Topic 815

Foreign exchange contracts	Prepaid and other current assets	$	21	$	19	Accrued liabilities	$	43	$	13
Foreign exchange contracts	Other Assets		—		—	Other Liabilities		1		—


Total derivatives not designated as hedging instruments under ASC Topic 815		$	21	$	19		$	44	$	13


Total derivatives		$	36	$	59		$	186	$	40

Effect of Derivative Instruments on Consolidated Statements of Income

The Effect of Derivative Instruments on the Consolidated Statements of Income

($ in millions)


Derivatives in ASC Topic 815 Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) (a)						Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)						Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) (b)
	Nine Months Ended September 30,							Nine Months Ended September 30,							Nine Months Ended September 30,
	2014			2013				2014			2013				2014		2013
							Revenue		25			7
Foreign exchange contracts		(132	)		(32	)	Cost of revenue		(5	)		(8	)	Other income (expense), net		26		6

Total		(132	)		(32	)			20			(1	)			26		6


Derivatives Not Designated as Hedging Instruments under ASC Topic 815	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain (Loss) Recognized in Income on Derivative
		Nine Months Ended September 30,
		2014			2013

Foreign exchange contracts	Other income (expense), net		(25	)		13

Total			(25	)		13

(a)	The Company expects that $101 million of the Accumulated Other Comprehensive Income (Loss) will be reclassified into earnings within the next twelve months with an offset by gains from the underlying transactions resulting in no impact to earnings or cash flow.

(b)

The amount of gain (loss) recognized in income represents $1 million and nil related to the ineffective portion of the hedging relationships for the nine months ended September 30, 2014 and 2013, respectively, and $25 million and $6 million related to the amount excluded from the assessment of the hedge effectiveness for the nine months ended September 30, 2014 and 2013, respectively.