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Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 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

    December 31,
2015		      December 31,
2014		  

Norwegian Krone

    NOK      9,655       NOK      10,781   

U.S. Dollar

    USD      321       USD      231   

Euro

    EUR      78       EUR      462   

Danish Krone

    DKK      57       DKK      227   

Singapore Dollar

    SGD      14       SGD      44   

British Pound Sterling

    GBP      4       GBP      80   

Canadian Dollar

    CAD      2       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

    December 31,
2015		      December 31,
2014		  

Norwegian Krone

    NOK      2,265       NOK      4,052   

Russian Ruble

    RUB      2,164       RUB      —     

U.S. Dollar

    USD      515       USD      1,092   

Euro

    EUR      371       EUR      401   

Danish Krone

    DKK      153       DKK      322   

British Pound Sterling

    GBP      11       GBP      19   

Canadian Dollar

    CAD      7       CAD      4   

Singapore Dollar

    SGD      5       SGD      4   

Mexican Peso

    MXN      —         MXN      118   

Brazilian Real

    BRL      —         BRL      57   

Swedish Krone

    SEK      —         SEK      3   
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):

Fair Values of Derivative Instruments

(In millions)

 

    

Asset Derivatives

     

Liability Derivatives

  
    

Balance Sheet

Location

    Fair Value
December 31,		     

Balance Sheet

Location

    Fair Value
December 31,		  
             
        2015      2014         2015      2014  

Derivatives designated as hedging instruments under ASC Topic 815

                  

Foreign exchange contracts

    Prepaid and other current assets    $ 5       $ 18       Accrued liabilities    $ 212       $ 204   

Foreign exchange contracts

    Other Assets      —           8       Other Liabilities      25         102   
     

 

 

     

 

 

        

 

 

     

 

 

  

Total derivatives designated as hedging instruments under ASC Topic 815

       $ 5       $ 26          $ 237       $ 306   
     

 

 

     

 

 

        

 

 

     

 

 

  

Derivatives not designated as hedging instruments under ASC Topic 815

                  

Foreign exchange contracts

    Prepaid and other current assets    $ 21       $ 27       Accrued liabilities    $ 49       $ 93   
     

 

 

     

 

 

        

 

 

     

 

 

  

Total derivatives not designated as hedging instruments under ASC Topic 815

       $ 21       $ 27          $ 49       $ 93   
     

 

 

     

 

 

        

 

 

     

 

 

  

Total derivatives

       $ 26       $ 53          $ 286       $ 399   
     

 

 

     

 

 

        

 

 

     

 

 

  
Effect of Derivative Instruments on Consolidated Statements of Income (Loss)

The Effect of Derivative Instruments on the Consolidated Statements of Income (Loss)

($ 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,		  
    2015     2014           2015     2014         2015     2014  
        Revenue        19        26      Cost of revenue     (33 )      (1 ) 

Foreign exchange contracts

     (243 )      (340 )      Cost of revenue        (262 )      (43 )    Other income (expense), net     4        36   
 

 

 

    

 

 

        

 

 

    

 

 

      

 

 

    

 

 

  

Total

     (243 )      (340 )          (243 )      (17 )        (29 )      35   
 

 

 

    

 

 

        

 

 

    

 

 

      

 

 

    

 

 

  

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,		                              
                2015     2014                              

Foreign exchange contracts

     Other income (expense), net        (97 )      (61 )           
     

 

 

    

 

 

            

Total

         (97 )      (61 )           
     

 

 

    

 

 

            

 

(a) The Company expects that $(223) 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 $(33) million and $(1) million related to the ineffective portion of the hedging relationships for the years ended December 31, 2015 and 2014, respectively, and $4 million and $36 million related to the amount excluded from the assessment of the hedge effectiveness for the years ended December 31, 2015 and 2014, respectively.