Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2016

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, 2016		December 31, 2015
Norwegian Krone	NOK	6,433	NOK	9,655
Euro	EUR	186	EUR	78
U.S. Dollar	USD	155	USD	321
Danish Krone	DKK	37	DKK	57
Singapore Dollar	SGD	8	SGD	14
British Pound Sterling	GBP	1	GBP	4
Canadian Dollar	CAD	—	CAD	2

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, 2016		December 31, 2015
Russian Ruble	RUB	1,956	RUB	2,164
Norwegian Krone	NOK	1,311	NOK	2,265
U.S. Dollar	USD	536	USD	515
Euro	EUR	273	EUR	371
Danish Krone	DKK	108	DKK	153
British Pound Sterling	GBP	15	GBP	11
Canadian Dollar	CAD	11	CAD	7
Singapore Dollar	SGD	1	SGD	5

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, 2016		December 31, 2015		Balance Sheet Location	September 30, 2016		December 31, 2015
Derivatives designated as hedging instruments under ASC Topic 815
Foreign exchange contracts	Prepaid and other current assets	$	28	$	5	Accrued liabilities	$	27	$	212
Foreign exchange contracts	Other Assets		—		—	Other liabilities		—		25

Total derivatives designated as hedging instruments under ASC Topic 815		$	28	$	5		$	27	$	237

Derivatives not designated as hedging instruments under ASC Topic 815
Foreign exchange contracts	Prepaid and other current assets	$	23	$	21	Accrued liabilities	$	16	$	49
Foreign exchange contracts	Other Assets		—		—	Other Liabilities		—		—

Total derivatives not designated as hedging instruments under ASC Topic 815		$	23	$	21		$	16	$	49

Total derivatives		$	51	$	26		$	43	$	286

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,
	2016		2015				2016			2015				2016		2015
						Revenue		3			11		Cost of revenue		(19)		(27)
Foreign exchange contracts		96		(196	)	Cost of revenue		(151	)		(207	)	Other income (expense), net		3		1

Total		96		(196)				(148)			(196)				(16)		(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,
		2016	2015
Foreign exchange contracts	Other income (expense), net	—	(84)

Total		—	(84)

(a)	The Company expects that $20 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 $(19) million and $(27) million related to the ineffective portion of the hedging relationships for each of the nine months ended September 30, 2016 and 2015, respectively, and $3 million and $1 million related to the amount excluded from the assessment of the hedge effectiveness for the nine months ended September 30, 2016 and 2015, respectively.