Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Outstanding Foreign Currency Forward Contracts

At December 31, 2014 and 2013, 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	December 31, 2014		December 31, 2013
Norwegian Krone	NOK	10,781	NOK	10,503
Euro	€	462	€	406
U.S. Dollar	$	231	$	357
Danish Krone	DKK	227	DKK	278
British Pound Sterling	£	80	£	23
Singapore Dollar	SGD	44	SGD	17
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	December 31, 2014		December 31, 2013
Norwegian Krone	NOK	4,052	NOK	3,257
U.S. Dollar	$	1,092	$	715
Euro	€	401	€	310
Danish Krone	DKK	322	DKK	177
Mexican Peso	MXN	118	MXN	—
Brazilian Real	BRL	57	BRL	—
British Pound Sterling	£	19	£	14
Singapore Dollar	SGD	4	SGD	3
Canadian Dollar	CAD	4	CAD	3
Swedish Krone	SEK	3	SEK	4
Russian Ruble	RUB	—	RUB	2,149

Derivative Instruments and their Balance Sheet Classifications

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


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

Foreign exchange contracts	Prepaid and other current assets	$	18	$	35	Accrued liabilities	$	204	$	18
Foreign exchange contracts	Other Assets		8		5	Other Liabilities		102		9

Total derivatives designated as hedging instruments under ASC Topic 815		$	26	$	40		$	306	$	27

Derivatives not designated as hedging instruments under ASC Topic 815

Foreign exchange contracts	Prepaid and other current assets	$	27	$	19	Accrued liabilities	$	93	$	13

Total derivatives not designated as hedging instruments under ASC Topic 815		$	27	$	19		$	93	$	13

Total derivatives		$	53	$	59		$	399	$	40

Effect of Derivative Instruments on Consolidated Statements of Income

The Effect of Derivative Instruments on the Consolidated Statements of Income

($ in millions)


Derivatives Designated as Hedging Instruments under ASC Topic 815	Amount of Gain (Loss) Recognized in OCI on Derivatives (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 Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) (b)
	Years Ended December 31,										Years Ended December 31,							Years Ended December 31,
	2014			2013							2014			2013				2014		2013
								Revenue				26			16
Foreign exchange contracts		(340	)		(42	)		Cost of revenue				(43	)		(6	)	Other income (expense), net		35		12

Total		(340	)		(42	)						(17	)		10				35		12


Derivatives Not Designated as Hedging Instruments under ASC Topic 815	Location of Gain (Loss) Recognized in Income on Derivatives						Amount of Gain (Loss) Recognized in Income on Derivatives
							Years Ended December 31,
							2014		2013
Foreign exchange contracts		Other income (expense), net						61		18

Total								61		18

(a)	The Company expects that $214 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 nil related to the ineffective portion of the hedging relationships for the each of the years ended December 31, 2014 and 2013, and $35 million and $12 million related to the amount excluded from the assessment of the hedge effectiveness for the years ended December 31, 2014 and 2013, respectively.