Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 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	September 30, 2015		December 31, 2014
Norwegian Krone	NOK	11,014	NOK	10,781
U.S. Dollar	USD	331	USD	231
Euro	EUR	139	EUR	462
Danish Krone	DKK	85	DKK	227
British Pound Sterling	GBP	22	GBP	80
Singapore Dollar	SGD	15	SGD	44
Canadian Dollar	CAD	5	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	September 30, 2015		December 31, 2014
Norwegian Krone	NOK	2,077	NOK	4,052
Russian Ruble	RUB	2,057	RUB	—
U.S. Dollar	USD	643	USD	1,092
Euro	EUR	404	EUR	401
Danish Krone	DKK	307	DKK	322
British Pound Sterling	GBP	22	GBP	19
Canadian Dollar	CAD	15	CAD	4
Singapore Dollar	SGD	3	SGD	4
Swedish Krone	SEK	1	SEK	3
Mexican Peso	MXN	—	MXN	118
Brazilian Real	BRL	—	BRL	57

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 Location	September 30, 2015		December 31, 2014		Balance Sheet Location	September 30, 2015		December 31, 2014
Derivatives designated as hedging instruments under ASC Topic 815

Foreign exchange contracts	Prepaid and other current assets	$	13	$	18	Accrued liabilities	$	191	$	204
Foreign exchange contracts	Other Assets		1		8	Other Liabilities		64		102


Total derivatives designated as hedging instruments under ASC Topic 815		$	14	$	26		$	255	$	306


Derivatives not designated as hedging instruments under ASC Topic 815

Foreign exchange contracts	Prepaid and other current assets	$	25	$	27	Accrued liabilities	$	80	$	93


Total derivatives not designated as hedging instruments under ASC Topic 815		$	25	$	27		$	80	$	93


Total derivatives		$	39	$	53		$	335	$	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)
	Nine Months Ended September 30,							Nine Months Ended September 30,							Nine Months Ended September 30,
	2015			2014				2015			2014				2015			2014
							Revenue		11			25		Cost of revenue		(27	)		1
Foreign exchange contracts		(196	)		(132	)	Cost of revenue		(207	)		(5	)	Other income (expense), net		1			25

Total		(196	)		(132	)			(196	)		20				(26	)		26


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,
		2015			2014
Foreign exchange contracts	Other income (expense), net		(84	)		(25	)

Total			(84	)		(25	)

(a)	The Company expects that $(235) 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 $(27) million and $1 million related to the ineffective portion of the hedging relationships for each of the nine months ended September 30, 2015 and 2014, respectively, and $1 million and $25 million related to the amount excluded from the assessment of the hedge effectiveness for the nine months ended September 30, 2015 and 2014, respectively.