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Derivatives and Hedging (Tables)
 3 Months Ended
Mar. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Notional and fair values of derivative instruments
The notional and fair values of derivative instruments are as follows (in millions):
 
Notional Amount
 
Derivative Assets (1)
 
Derivative Liabilities (2)
 
March 31,
2014
 
December 31,
2013
 
March 31,
2014
 
December 31,
2013
 
March 31,
2014
 
December 31,
2013
Derivatives accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Interest rate contracts
$
172

 
$
171

 
$
9

 
$
9

 
$
—

 
$
—

Foreign exchange contracts
1,223

 
1,191

 
73

 
71

 
94

 
93

Total
1,395

 
1,362

 
82

 
80

 
94

 
93

Derivatives not accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Foreign exchange contracts
177

 
215

 
—

 
—

 
—

 
—

   Total
$
1,572

 
$
1,577

 
$
82

 
$
80

 
$
94

 
$
93

______________________________________________
(1)
Included within Other current assets ($49 million and $46 million at March 31, 2014 and December 31, 2013, respectively) or Other non-current assets ($33 million and $34 million at March 31, 2014 and December 31, 2013, respectively)
(2)
Included within Other current liabilities ($18 million and $51 million at March 31, 2014 and December 31, 2013, respectively) or Other non-current liabilities ($76 million and $42 million at March 31, 2014 and December 31, 2013, respectively)

Offsetting of financial assets and derivatives assets are as follows (in millions):
 
Gross Amounts of Recognized Assets
 
Gross Amounts Offset in the Statement of Financial Position
 
Net Amounts of Assets Presented in the Statement of Financial Position (1)
 
March 31,
2014
 
December 31,
2013
 
March 31,
2014
 
December 31,
2013
 
March 31,
2014
 
December 31,
2013
Derivatives accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Interest rate contracts
$
9

 
$
9

 
$
—

 
$
—

 
$
9

 
$
9

Foreign exchange contracts
73

 
71

 
(24
)
 
(30
)
 
49

 
41

Total
82

 
80

 
(24
)
 
(30
)
 
58

 
50

Derivatives not accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Foreign exchange contracts
—

 
—

 
—

 
—

 
—

 
—

   Total
$
82

 
$
80

 
$
(24
)
 
$
(30
)
 
$
58

 
$
50

______________________________________________
(1) Included within Other current assets ($21 million and $18 million at March 31, 2014 and December 31, 2013, respectively) or Other non-current assets ($37 million and $32 million at March 31, 2014 and December 31, 2013, respectively)

Offsetting of financial liabilities and derivative liabilities are as follows (in millions):
 
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset in the Statement of Financial Position
 
Net Amounts of Liabilities Presented in the Statement of Financial Position (2)
 
March 31,
2014
 
December 31,
2013
 
March 31,
2014
 
December 31,
2013
 
March 31,
2014
 
December 31,
2013
Derivatives accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Interest rate contracts
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Foreign exchange contracts
94

 
93

 
(24
)
 
(30
)
 
70

 
63

Total
94

 
93

 
(24
)
 
(30
)
 
70

 
63

Derivatives not accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Foreign exchange contracts
—

 
—

 
—

 
—

 
—

 
—

   Total
$
94

 
$
93

 
$
(24
)
 
$
(30
)
 
$
70

 
$
63


______________________________________________
(2) Included within Other current liabilities ($18 million and $23 million at March 31, 2014 and December 31, 2013, respectively) or Other non-current liabilities ($52 million and $40 million at March 31, 2014 and December 31, 2013, respectively)
Derivative gains (losses)
The amounts of derivative gains (losses) recognized in the Condensed Consolidated Financial Statements for the three months ended March 31, 2014 and 2013 are as follows (in millions):
 
Three months ended March 31,
Gain (Loss) recognized in Accumulated Other Comprehensive Loss:
2014
 
2013
Cash flow hedges:
 

 
 

Interest rate contracts (1)
$
—

 
$
—

Foreign exchange contracts (2)
(8
)
 
(29
)
Total
$
(8
)
 
$
(29
)
Foreign net investment hedges:
 

 
 

Foreign exchange contracts
$
—

 
$
—

 ______________________________________________
(1) Location of future reclassification from Accumulated Other Comprehensive Loss will be included within Interest Expense
(2) Location of future reclassification from Accumulated Other Comprehensive Loss will be included within Compensation and benefits ($11 million and $4 million gain for the three months ended March 31, 2014 and 2013, respectively), and Other income ($19 million and $33 million loss for the three months ended March 31, 2014 and 2013, respectively)
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion):
Three months ended March 31,
2014
 
2013
Cash flow hedges:
 

 
 

Interest rate contracts (1)
$
—

 
$
—

Foreign exchange contracts (2)
(21
)
 
(11
)
Total
(21
)
 
(11
)
Foreign net investment hedges:
 

 
 

Foreign exchange contracts
$
—

 
$
—

 ______________________________________________
(1) Included within Interest Expense
(2) Included within Compensation and benefits ($3 million and $1 million loss for the three months ended March 31, 2014 and 2013, respectively), Other general expenses ($1 million loss for the three months ended March 31, 2013), and Other income ($18 million and $9 million loss for the three months ended March 31, 2014 and 2013, respectively)

The amount of gain (loss) recognized in the Condensed Consolidated Financial Statements is as follows (in millions):
 
Three months ended March 31,
 
Amount of Gain (Loss) Recognized in Income on Derivative (2)
 
Amount of Gain (Loss) Recognized in Income on Related Hedged Item
 
2014
 
2013
 
2014
 
2013
Fair value hedges:
 

 
 

 
 

 
 

Foreign exchange contracts (1)
$
—

 
$
(1
)
 
$
—

 
$
1

  ______________________________________________
(1) Relates to fixed rate debt
(2) Included in Interest expense