Derivatives and Hedging (Tables)

3 Months Ended

Mar. 31, 2015

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, 2015		December 31, 2014		March 31, 2015		December 31, 2014		March 31, 2015		December 31, 2014
Derivatives accounted for as hedges:
Interest rate contracts	$	—	$	—	$	—	$	—	$	—	$	—
Foreign exchange contracts	919		1,200		59		46		79		58
Total	919		1,200		59		46		79		58
Derivatives not accounted for as hedges:
Foreign exchange contracts (3)	181		165		—		—		—		—
Total	$	1,100	$	1,365	$	59	$	46	$	79	$	58

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(1)	Included within Other current assets ($38 million at March 31, 2015 and $24 million at December 31, 2014) or Other non-current assets ($21 million at March 31, 2015 and $22 million at December 31, 2014).


(2)	Included within Other current liabilities ($66 million at March 31, 2015 and $52 million at December 31, 2014) or Other non-current liabilities ($13 million at March 31, 2015 and $6 million at December 31, 2014).


(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)
	March 31, 2015		December 31, 2014		March 31, 2015			December 31, 2014			March 31, 2015		December 31, 2014
Derivatives accounted for as hedges:
Interest rate contracts	$	—	$	—	$	—		$	—		$	—	$	—
Foreign exchange contracts	59		46		(32		)	(14		)	27		32
Total	59		46		(32		)	(14		)	27		32
Derivatives not accounted for as hedges:
Foreign exchange contracts	—		—		—			—			—		—
Total	$	59	$	46	$	(32	)	$	(14	)	$	27	$	32

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(1) Included within Other current assets ($15 million at March 31, 2015 and $12 million at December 31, 2014) or Other non-current assets ($12 million at March 31, 2015 and $20 million at December 31, 2014).

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 (1)
	March 31, 2015		December 31, 2014		March 31, 2015			December 31, 2014			March 31, 2015		December 31, 2014
Derivatives accounted for as hedges:
Interest rate contracts	$	—	$	—	$	—		$	—		$	—	$	—
Foreign exchange contracts	79		58		(32		)	(14		)	47		44
Total	79		58		(32		)	(14		)	47		44
Derivatives not accounted for as hedges:
Foreign exchange contracts	—		—		—			—			—		—
Total	$	79	$	58	$	(32	)	$	(14	)	$	47	$	44

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(1) Included within Other current liabilities ($42 million at March 31, 2015 and $40 million at December 31, 2014) or Other non-current liabilities ($5 million at March 31, 2015 and $4 million at December 31, 2014)

Derivative gains (losses)

The amounts of derivative gains (losses) recognized in the Condensed Consolidated Financial Statements for the three months ended March 31, 2015 and 2014 are as follows (in millions):



Three Months Ended March 31, 2015
	Location of future reclassification from Accumulated Other Comprehensive Loss										Gain (Loss) recognized in Accumulated Other Comprehensive Loss:
	Compensation and Benefits		Other General Expenses			Interest Expense		Other Income (Expense)			Total
Cash flow hedges:
Interest rate contracts	$	—	$	—		$	—	$	—		$	—
Foreign exchange contracts	5		(2		)	—		(4		)	(1		)
Total	$	5	$	(2	)	$	—	$	(4	)	$	(1	)



Three Months Ended March 31, 2014
	Location of future reclassification from Accumulated Other Comprehensive Loss									Gain (Loss) recognized in Accumulated Other Comprehensive Loss:
	Compensation and Benefits		Other General Expenses		Interest Expense		Other Income (Expense)			Total
Cash flow hedges:
Interest rate contracts	$	—	$	—	$	—	$	—		$	—
Foreign exchange contracts	11		—		—		(19		)	(8		)
Total	$	11	$	—	$	—	$	(19	)	$	(8	)



Three Months Ended March 31, 2015
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion):	Compensation and Benefits		Other General Expenses		Interest Expense			Other Income (Expense)			Total
Cash flow hedges:
Interest rate contracts	$	—	$	—	$	(1	)	$	—		$	(1	)
Foreign exchange contracts	—		—		(2		)	(8		)	(10		)
Total	$	—	$	—	$	(3	)	$	(8	)	$	(11	)



Three Months Ended March 31, 2014
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion):	Compensation and Benefits			Other General Expenses		Interest Expense		Other Income (Expense)			Total
Cash flow hedges:
Interest rate contracts	$	—		$	—	$	—	$	—		$	—
Foreign exchange contracts	(3		)	—		—		(18		)	(21		)
Total	$	(3	)	$	—	$	—	$	(18	)	$	(21	)

The amounts of derivative gains (losses) recognized in the Condensed Consolidated Financial Statements for the three months ended March 31, 2015 and 2014 are as follows (in millions):



Three Months Ended March 31, 2015
	Location of future reclassification from Accumulated Other Comprehensive Loss										Gain (Loss) recognized in Accumulated Other Comprehensive Loss:
	Compensation and Benefits		Other General Expenses			Interest Expense		Other Income (Expense)			Total
Cash flow hedges:
Interest rate contracts	$	—	$	—		$	—	$	—		$	—
Foreign exchange contracts	5		(2		)	—		(4		)	(1		)
Total	$	5	$	(2	)	$	—	$	(4	)	$	(1	)



Three Months Ended March 31, 2014
	Location of future reclassification from Accumulated Other Comprehensive Loss									Gain (Loss) recognized in Accumulated Other Comprehensive Loss:
	Compensation and Benefits		Other General Expenses		Interest Expense		Other Income (Expense)			Total
Cash flow hedges:
Interest rate contracts	$	—	$	—	$	—	$	—		$	—
Foreign exchange contracts	11		—		—		(19		)	(8		)
Total	$	11	$	—	$	—	$	(19	)	$	(8	)



Three Months Ended March 31, 2015
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion):	Compensation and Benefits		Other General Expenses		Interest Expense			Other Income (Expense)			Total
Cash flow hedges:
Interest rate contracts	$	—	$	—	$	(1	)	$	—		$	(1	)
Foreign exchange contracts	—		—		(2		)	(8		)	(10		)
Total	$	—	$	—	$	(3	)	$	(8	)	$	(11	)



Three Months Ended March 31, 2014
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion):	Compensation and Benefits			Other General Expenses		Interest Expense		Other Income (Expense)			Total
Cash flow hedges:
Interest rate contracts	$	—		$	—	$	—	$	—		$	—
Foreign exchange contracts	(3		)	—		—		(18		)	(21		)
Total	$	(3	)	$	—	$	—	$	(18	)	$	(21	)