Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017		December 31, 2016
Norwegian Krone	NOK	4,013	NOK	5,621
Japanese Yen	JPY	982	JPY	1,462
U.S. Dollar	USD	163	USD	321
Euro	EUR	120	EUR	279
Danish Krone	DKK	30	DKK	29
British Pound Sterling	GBP	11	GBP	1
Singapore Dollar	SGD	—	SGD	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	December 31, 2017		December 31, 2016
Russian Ruble	RUB	2,699	RUB	1,893
Norwegian Krone	NOK	1,734	NOK	538
U.S. Dollar	USD	463	USD	457
South African Rand	ZAR	150	ZAR	150
Euro	EUR	99	EUR	272
Danish Krone	DKK	15	DKK	49
British Pound Sterling	GBP	3	GBP	3
Singapore Dollar	SGD	—	SGD	7
Canadian Dollar	CAD	—	CAD	1

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	Fair Value December 31,				Balance Sheet	Fair Value December 31,
	Location	2017		2016		Location	2017		2016
Derivatives designated as hedging instruments under ASC Topic 815

Foreign exchange contracts	Prepaid and other current assets	$	13	$	24	Accrued liabilities	$	3	$	37
Foreign exchange contracts	Other Assets		8		6	Other Liabilities		2		11

Total derivatives designated as hedging instruments under ASC Topic 815		$	21	$	30		$	5	$	48

Derivatives not designated as hedging instruments under ASC Topic 815

Foreign exchange contracts	Prepaid and other current assets	$	10	$	32	Accrued liabilities	$	5	$	29
Foreign exchange contracts	Other Assets		2		—	Other Liabilities		1		—

Total derivatives not designated as hedging instruments under ASC Topic 815		$	12	$	32		$	6	$	29

Total derivatives		$	33	$	62		$	11	$	77

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,
	2017		2016			2017			2016				2017		2016
					Revenue		8			5		Cost of revenue		7		(21	)
Foreign exchange contracts		56		45	Cost of revenue		(19	)		(170	)	Other income (expense), net		2		8

Total		56		45			(11	)		(165	)			9		(13	)

Derivatives Not Designated as

Location of Gain (Loss)

Amount of Gain (Loss)

Hedging Instruments under

Recognized in Income

Recognized in Income on

ASC Topic 815

on Derivatives

Derivatives

Years Ended
December 31,

2017

2016

Foreign exchange contracts

Other income (expense), net

(33

)

Total

(33

)

(a)	The Company expects that $5 million of the Accumulated Other Comprehensive Income (Loss) will be reclassified into earnings within the next twelve months with an offset by losses from the underlying transactions resulting in no impact to earnings or cash flow.

(b)

The amount of gain (loss) recognized in income represents $7 million and $(21) million related to the ineffective portion of the hedging relationships for the years ended December 31, 2017 and 2016, respectively, and $2 million and $8 million related to the amount excluded from the assessment of the hedge effectiveness for the years ended December 31, 2017 and 2016, respectively.