Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2018

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	March 31, 2018		December 31, 2017
Norwegian Krone	NOK	3,556	NOK	4,013
Japanese Yen	JPY	968	JPY	982
U.S. Dollar	USD	113	USD	163
Euro	EUR	83	EUR	120
Danish Krone	DKK	19	DKK	30
British Pound Sterling	GBP	9	GBP	11

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	March 31, 2018		December 31, 2017
Russian Ruble	RUB	2,903	RUB	2,699
Norwegian Krone	NOK	1,407	NOK	1,734
U.S. Dollar	USD	469	USD	463
South African Rand	ZAR	176	ZAR	150
Euro	EUR	106	EUR	99
Danish Krone	DKK	33	DKK	15
British Pound Sterling	GBP	4	GBP	3

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		March 31, 2018		December 31, 2017		Balance Sheet Location		March 31, 2018		December 31, 2017
Derivatives designated as hedging instruments under ASC Topic 815
Foreign exchange contracts		Prepaid and other current assets	$	23	$	13		Accrued liabilities	$	3	$	3
Foreign exchange contracts		Other Assets		11		8		Other liabilities		—		2

Total derivatives designated as hedging instruments under ASC Topic 815			$	34	$	21			$	3	$	5

Derivatives not designated as hedging instruments under ASC Topic 815
Foreign exchange contracts		Prepaid and other current assets	$	6	$	10		Accrued liabilities	$	5	$	5
Foreign exchange contracts		Other Assets		2		2		Other Liabilities		1		1

Total derivatives not designated as hedging instruments under ASC Topic 815			$	8	$	12			$	6	$	6

Total derivatives			$	42	$	33			$	9	$	11

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)
	Three Months Ended March 31,									Three Months Ended March 31,							Three Months Ended March 31,
	2018			2017						2018		2017					2018			2017
Foreign exchange contracts		22			13		Revenue Cost of revenue				1 4		5 (11	)		Cost of revenue Other income (expense), net		0 (1	)		15 8

Total		22			13						5		(6	)				(1	)		23


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
						Three Months Ended March 31,
						2018		2017
Foreign exchange contracts		Other income	(expense), net				11		9

Total							11		9

(a)	The Company expects that $17 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 nil and $15 million related to the ineffective portion of the hedging relationships for the three months ended March 31, 2018 and 2017, respectively, and $(1) million and $8 million related to the amount excluded from the assessment of the hedge effectiveness for the three months ended March 31, 2018 and 2017, respectively.