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Accumulated Other Comprehensive Income (Loss)
 3 Months Ended
Mar. 31, 2017
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, 2016

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

Accumulated other comprehensive income (loss) before reclassifications

      90        10        1        101  

Amounts reclassified from accumulated other comprehensive income (loss)

      —          (5 )       —          (5 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Balance at March 31, 2017

    $ (1,286 )     $ (34 )     $ (36 )     $ (1,356 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

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

 

     Three Months Ended March 31,  
     2017     2016  
     Currency
Translation
Adjustments		      Derivative
Financial
Instruments		     Defined
Benefit
Plans		      Total     Currency
Translation
Adjustments		      Derivative
Financial
Instruments		     Defined
Benefit
Plans		      Total  

Revenue

    $ —        $ (5 )    $ —        $ (5 )    $ —        $ (1 )    $ —        $ (1 ) 

Cost of revenue

      —          (4 )      —          (4 )      —          76       —          76  

Tax effect

      —          4       —          4       —          (23 )      —          (23 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  
   $ —        $ (5 )    $ —        $ (5 )    $ —        $ 52     $ —        $ 52  
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

The Company’s reporting currency is the U.S. dollar. For a majority of the Company’s international entities in which there is a substantial investment, the local currency is 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 March 31, 2017, a majority of these local currencies strengthened against the U.S. dollar resulting in net other comprehensive income of $90 million, upon the translation from local currencies to the U.S. dollar. For the three months ended March 31, 2016, a majority of these local currencies strengthened against the U.S. dollar resulting in net other comprehensive income of $143 million 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. Any movement in other comprehensive income or loss from period to period is 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 $5 million (net of tax of $1 million) and $102 million (net of tax of $40 million) for the three months ended March 31, 2017 and March 31, 2016, respectively.