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Accumulated Other Comprehensive Income (Loss)
 12 Months Ended
Dec. 31, 2015
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)

11. 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, 2012

    $ 132      $ 42      $ (67 )    $ 107   
  

 

 

    

 

 

    

 

 

    

 

 

  

Accumulated other comprehensive income (loss) before reclassifications

      (90 )      (29 )      48        (71 ) 

Amounts reclassified from accumulated other comprehensive income (loss)

      (25 )      (8 )      (7 )      (40 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Balance at December 31, 2013

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

 

 

    

 

 

    

 

 

    

 

 

  

Accumulated other comprehensive income (loss) before reclassifications

      (543 )      (245 )      (59 )      (847 ) 

Amounts reclassified from accumulated other comprehensive income (loss)

      11        12        (6 )      17   
  

 

 

    

 

 

    

 

 

    

 

 

  

Balance at December 31, 2014

    $ (515 )    $ (228 )    $ (91 )    $ (834 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Accumulated other comprehensive income (loss) before reclassifications

      (764 )      (176 )      26        (914 ) 

Amounts reclassified from accumulated other comprehensive income (loss)

      —          199        (4 )      195   
  

 

 

    

 

 

    

 

 

    

 

 

  

Balance at December 31, 2015

    $ (1,279 )    $ (205 )    $ (69 )    $ (1,553 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

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

 

    Years Ended December 31,  
    2015     2014     2013  
    Currency
Translation
Adjustments		     Derivative
Financial
Instruments		     Defined
Benefit
Plans		     Total     Currency
Translation
Adjustments		     Derivative
Financial
Instruments		     Defined
Benefit
Plans		     Total     Currency
Translation
Adjustments		     Derivative
Financial
Instruments		     Defined
Benefit
Plans		     Total  

Revenue

   $ —        $ (19 )    $ —        $ (19 )    $ —        $ (26 )    $ —        $ (26 )    $ —        $ (16 )    $ —        $ (16 ) 

Cost of revenue

     —          295        —          295        —          43        —          43        —          6        —          6   
          —                —                —     

Selling, general, and administrative

     —          —          (6 )      (6 )      —          —          (8 )      (8 )      —          —          (8 )      (8 ) 
                          —     

Other income (expense), net

     —          —          —          —          11        —          —          11        (25 )      —          —          (25 ) 

Tax effect

     —          (77 )      2        (75 )      —          (5 )      2        (3 )      —          2        1        3   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  $ —      $ 199      $ (4 )    $ 195      $ 11      $ 12      $ (6 )    $ 17      $ (25 )    $ (8 )    $ (7 )    $ (40 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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 years ended December 31, 2015, 2014 and 2013 a majority of these local currencies weakened against the U.S. dollar resulting in a net other comprehensive loss of $764 million, $543 million and $90 million, respectively, upon the translation from local currencies to the U.S. dollar. Due to the sale of non-core industrial businesses, $11 million of currency translation losses and $25 million of currency translation gains were reclassified from accumulated other comprehensive income (loss) into other income (expense), net in the Consolidated Statements of Income for the years ended December 31, 2014 and 2013 respectively.

The effect of changes in the fair values of derivatives designated as cash flow hedges are accumulated in other comprehensive income (loss), net of tax, until the underlying transactions to which they are designed to hedge are realized. The movement in other comprehensive income (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 (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 income of $23 million (net of tax of $14 million) for the year ended December 31, 2015, other comprehensive loss of $233 million (net of tax of $89 million) for the year ended December 31, 2014 and other comprehensive loss of $37 million (net of tax of $18 million) for the year ended December 31, 2013.