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Accumulated Other Comprehensive Income (Loss)
 12 Months Ended
Dec. 31, 2016
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, 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 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Accumulated other comprehensive income (loss) before reclassifications

      (97 )      32        35        (30 ) 

Amounts reclassified from accumulated other comprehensive income (loss)

      —          134        (3 )      131   
  

 

 

    

 

 

    

 

 

    

 

 

  

Balance at December 31, 2016

    $ (1,376 )    $ (39 )    $ (37 )    $ (1,452 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

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

 

    Years Ended December 31,  
    2016     2015     2014  
    Currency     Derivative     Defined           Currency     Derivative     Defined           Currency     Derivative     Defined        
    Translation     Financial     Benefit           Translation     Financial     Benefit           Translation     Financial     Benefit        
    Adjustments     Instruments     Plans     Total     Adjustments     Instruments     Plans     Total     Adjustments     Instruments     Plans     Total  

Revenue

   $ —        $ (5 )    $ —        $ (5 )    $ —        $ (19 )    $ —        $ (19 )    $ —        $ (26 )    $ —        $ (26 ) 

Cost of revenue

     —          191        —          191        —          295        —          295        —          43        —          43   

Selling, general, and administrative

     —          —          (5 )      (5 )      —          —          (6 )      (6 )      —          —          (8 )      (8 ) 

Other income (expense), net

     —          —          —          —          —          —          —          —          11        —          —          11   

Tax effect

     —          (52 )      2        (50 )      —          (77 )      2        (75 )      —          (5 )      2        (3 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  $ —        $ 134      $ (3 )    $ 131      $ —        $ 199      $ (4 )    $ 195      $ 11      $ 12      $ (6 )    $ 17   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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, 2016, 2015 and 2014, a majority of these local currencies weakened against the U.S. dollar, resulting in a net other comprehensive loss of $97 million, $764 million, and $543 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 were reclassified from accumulated other comprehensive income (loss) into other income (expense), net in the Consolidated Statements of Income for the year ended December 31, 2014.

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 $166 million (net of tax of $65 million) for the year ended December 31, 2016, other comprehensive income of $23 million (net of tax of $14 million) for the year ended December 31, 2015 and other comprehensive loss of $233 million (net of tax of $89 million) for the year ended December 31, 2014.