Derivatives and Hedging (Tables)

12 Months Ended

Dec. 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)
As of December 31	2014		2013		2014		2013		2014		2013
Derivatives accounted for as hedges:
Interest rate contracts	$	—	$	171	$	—	$	9	$	—	$	—
Foreign exchange contracts	1,200		1,191		46		71		58		93
Total	1,200		1,362		46		80		58		93
Derivatives not accounted for as hedges:
Foreign exchange contracts (3)	165		215		—		—		—		—
Total	$	1,365	$	1,577	$	46	$	80	$	58	$	93

(1) Included within Other current assets ($24 million in 2014 and $46 million in 2013, respectively) or Other non-current assets ($22 million in 2014 and $34 million in 2013, respectively)

(2) Included within Other current liabilities ($52 million in 2014 and $51 million in 2013, respectively) or Other non-current liabilities ($6 million in 2014 and $42 million in 2013, respectively)

(3) These contracts typically are for 30 day durations and executed close to the last day of the most recent reporting month, thereby resulting in nominal fair values at the balance sheet date.

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)
	2014		2013		2014			2013			2014		2013
Derivatives accounted for as hedges:
Interest rate contracts	$	—	$	9	$	—		$	—		$	—	$	9
Foreign exchange contracts	46		71		(14		)	(30		)	32		41
Total	46		80		(14		)	(30		)	32		50
Derivatives not accounted for as hedges:
Foreign exchange contracts	—		—		—			—			—		—
Total	$	46	$	80	$	(14	)	$	(30	)	$	32	$	50

______________________________________________

(1) Included within Other current assets ($12 million in 2014 and $18 million in 2013, respectively) or Other non-current assets ($20 million in 2014 and $32 million in 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)
	2014		2013		2014			2013			2014		2013
Derivatives accounted for as hedges:
Interest rate contracts	$	—	$	—	$	—		$	—		$	—	$	—
Foreign exchange contracts	58		93		(14		)	(30		)	44		63
Total	58		93		(14		)	(30		)	44		63
Derivatives not accounted for as hedges:
Foreign exchange contracts	—		—		—			—			—		—
Total	$	58	$	93	$	(14	)	$	(30	)	$	44	$	63

______________________________________________

(2) Included within Other current liabilities ($40 million in 2014 and $23 million in 2013, respectively) or Other non-current liabilities ($4 million in 2014 and $40 million in 2013, respectively)

Derivative gains (losses)

The amounts of derivative gains (losses) recognized in the Consolidated Financial Statements are as follows (in millions):

Year Ended December 31, 2014
Gain (Loss) recognized in Accumulated Other Comprehensive Loss:	Compensation and Benefits		Other General Expenses			Interest Expense		Other Income			Total
Cash flow hedges:
Interest rate contracts	$	—	$	—		$	—	$	—		$	—
Foreign exchange contracts	11		(3		)	—		(10		)	(2		)
Total	11		(3		)	—		(10		)	(2		)

Year Ended December 31, 2013
Gain (Loss) recognized in Accumulated Other Comprehensive Loss:	Compensation and Benefits			Other General Expenses		Interest Expense		Other Income		Total
Cash flow hedges:
Interest rate contracts	$	—		$	—	$	2	$	—	$	2
Foreign exchange contracts	(17		)	—		—		13		(4		)
Total	(17		)	—		2		13		(2		)

Year Ended December 31, 2012
Gain (Loss) recognized in Accumulated Other Comprehensive Loss:	Compensation and Benefits			Other General Expenses			Interest Expense		Other Income		Total
Cash flow hedges:
Interest rate contracts	$	—		$	—		$	—	$	—	$	—
Foreign exchange contracts	(8		)	(19		)	—		6		(21		)
Total	(8		)	(19		)	—		6		(21		)
Foreign net investment hedges:
Foreign exchange contracts	$	—		$	—		$	—	$	4	$	4

Year Ended December 31, 2014
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion):	Compensation and Benefits			Other General Expenses		Interest Expense			Other Income			Total
Cash flow hedges:
Interest rate contracts	$	—		$	—	$	(1	)	$	—		$	(1	)
Foreign exchange contracts	(5		)	3		(10		)	(2		)	(14		)
Total	(5		)	3		(11		)	(2		)	(15		)

Year Ended December 31, 2013
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion):	Compensation and Benefits			Other General Expenses			Interest Expense			Other Income		Total
Cash flow hedges:
Interest rate contracts	$	—		$	—		$	(1	)	$	—	$	(1	)
Foreign exchange contracts	(12		)	(9		)	(3		)	14		(10		)
Total	(12		)	(9		)	(4		)	14		(11		)

Year Ended December 31, 2012
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion):	Compensation and Benefits			Other General Expenses			Interest Expense			Other Income			Total
Cash flow hedges:
Interest rate contracts	$	—		$	—		$	(1	)	$	—		$	(1	)
Foreign exchange contracts	(9		)	(16		)	—			(9		)	(34		)
Total	(9		)	(16		)	(1		)	(9		)	(35		)

The amount of gain (loss) recognized in the Consolidated Financial Statements is as follows (in millions):

	Twelve months ended December 31,
	Amount of Gain (Loss) Recognized in Income on Derivative (1)								Amount of Gain (Loss) Recognized in Income on Related Hedged Item
	2014			2013			2012		2014		2013		2012
Fair value hedges:
Foreign exchange contracts (2)	$	(9	)	$	(8	)	$	1	$	9	$	8	$	(1	)

(1) Included in interest expense

(2) Relates to fixed rate debt