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Accumulated Other Comprehensive Income (Loss)
 9 Months Ended
Sep. 30, 2016
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)

5. 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, 2015

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

Accumulated other comprehensive income (loss) before reclassifications

      79         71         —           150   

Amounts reclassified from accumulated other comprehensive income (loss)

      —           120         —           120   
  

 

 

     

 

 

     

 

 

     

 

 

  

Balance at September 30, 2016

    $ (1,200 )     $ (14 )     $ (69 )     $ (1,283 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

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

 

     Three Months Ended September 30,  
     2016     2015  
     Currency
Translation
Adjustments		      Derivative
Financial
Instruments		     Defined
Benefit
Plans		      Total     Currency
Translation
Adjustments		      Derivative
Financial
Instruments		     Defined
Benefit
Plans		      Total  

Revenue

    $ —         $ —        $ —         $ —        $ —         $ (10 )    $ —         $ (10 ) 

Cost of revenue

      —           48        —           48        —           82        —           82   

Tax effect

      —           (12 )      —           (12 )      —           (21 )      —           (21 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  
   $ —         $ 36      $ —         $ 36      $ —         $ 51      $ —         $ 51   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  
     Nine Months Ended September 30,  
     2016     2015  
     Currency
Translation
Adjustments		      Derivative
Financial
Instruments		     Defined
Benefit
Plans		      Total     Currency
Translation
Adjustments		      Derivative
Financial
Instruments		     Defined
Benefit
Plans		      Total  

Revenue

    $ —         $ (3 )    $ —         $ (3 )    $ —         $ (11 )    $ —         $ (11 ) 

Cost of revenue

      —           170        —           170        —           234        —           234   

Tax effect

      —           (47 )      —           (47 )      —           (65 )      —           (65 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  
   $ —         $ 120      $ —         $ 120      $ —         $ 158      $ —         $ 158   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

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 three months ended September 30, 2016, a majority of these local currencies weakened against the U.S. dollar resulting in net other comprehensive loss of $18 million, upon the translation from local currencies to the U.S. dollar. For the nine months ended September 30, 2016, a majority of these local currencies strengthened against the U.S. dollar resulting in net other comprehensive income of $79 million, upon the translation from local currencies to the U.S. dollar. For the three and nine months ended September 30, 2015, a majority of these local currencies weakened against the U.S. dollar resulting in net other comprehensive loss of $339 million and $650 million, respectively, upon the translation from local currencies to the U.S. dollar.

The effect of changes in the fair values of derivatives designated as cash flow hedges are accumulated in other comprehensive income or loss, net of tax, until the underlying transactions to which they are designed to hedge are realized. The movement in other comprehensive income or 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 or 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 $60 million (net of tax of $20 million) and $191 million (net of tax of $72 million) for the three and nine months ended September 30, 2016, respectively. The accumulated effect was other comprehensive loss of $19 million (net of tax of $5 million) and income of $7 million (net of tax of $8 million) for the three and nine months ended September 30, 2015, respectively.