Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2015

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	March 31, 2015		December 31, 2014
Norwegian Krone	NOK	9,832	NOK	10,781
Euro	€	359	€	462
U.S. Dollar	$	280	$	231
Danish Krone	DKK	161	DKK	227
British Pound Sterling	£	56	£	80
Singapore Dollar	SGD	34	SGD	44
Canadian Dollar	CAD	10	CAD	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
Foreign Currency	March 31, 2015		December 31, 2014
Norwegian Krone	NOK	4,663	NOK	4,052
Russian Ruble	RUB	3,086	RUB	—
U.S. Dollar	$	942	$	1,092
Danish Krone	DKK	531	DKK	322
Euro	€	448	€	401
Mexican Peso	MXN	152	MXN	118
Brazilian Real	BRL	117	BRL	57
British Pound Sterling	£	33	£	19
Canadian Dollar	CAD	9	CAD	4
Singapore Dollar	SGD	9	SGD	4
Swedish Krone	SEK	4	SEK	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	March 31,		December 31,		Balance Sheet	March 31,		December 31,
	Location	2015		2014		Location	2015		2014
Derivatives designated as hedging instruments under ASC Topic 815

Foreign exchange contracts	Prepaid and other current assets	$	21	$	18	Accrued liabilities	$	275	$	204
Foreign exchange contracts	Other Assets		6		8	Other Liabilities		98		102


Total derivatives designated as hedging instruments under ASC Topic 815		$	27	$	26		$	373	$	306


Derivatives not designated as hedging instruments under ASC Topic 815

Foreign exchange contracts	Prepaid and other current assets	$	29	$	27	Accrued liabilities	$	145	$	93
Foreign exchange contracts	Other Assets		—		—	Other Liabilities		1		—


Total derivatives not designated as hedging instruments under ASC Topic 815		$	29	$	27		$	146	$	93


Total derivatives		$	56	$	53		$	519	$	399

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)
	Three Months Ended March 31,						Three Months Ended March 31,							Three Months Ended March 31,
	2015			2014			2015			2014				2015			2014
						Revenue		(65	)		13
Foreign exchange contracts		(152	)		35	Cost of revenue		1			(3	)	Other income (expense), net		(1	)		13

Total		(152	)		35			(64	)		10				(1	)		13


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
		Three Months Ended March 31,
		2015			2014

Foreign exchange contracts	Other income (expense), net		(76	)		11

Total			(76	)		11

(a)	The Company expects that $305 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 $(2) million and $1 million related to the ineffective portion of the hedging relationships for each of the three months ended March 31, 2015 and 2014, respectively, and $1 million and $12 million related to the amount excluded from the assessment of the hedge effectiveness for the three months ended March 31, 2015 and 2014, respectively.