Derivatives and Hedging (Tables)

6 Months Ended

Jun. 30, 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)
	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014
Derivatives accounted for as hedges:
Interest rate contracts	$	—	$	—	$	—	$	—	$	—	$	—
Foreign exchange contracts	998		1,200		54		46		57		58
Total	998		1,200		54		46		57		58
Derivatives not accounted for as hedges:
Foreign exchange contracts (3)	167		165		—		—		—		—
Total	$	1,165	$	1,365	$	54	$	46	$	57	$	58

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(1)	Included within Other current assets ($28 million at June 30, 2015 and $24 million at December 31, 2014) or Other non-current assets ($26 million at June 30, 2015 and $22 million at December 31, 2014).


(2)	Included within Other current liabilities ($47 million at June 30, 2015 and $52 million at December 31, 2014) or Other non-current liabilities ($10 million at June 30, 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)
	June 30, 2015		December 31, 2014		June 30, 2015			December 31, 2014			June 30, 2015		December 31, 2014
Derivatives accounted for as hedges:
Interest rate contracts	$	—	$	—	$	—		$	—		$	—	$	—
Foreign exchange contracts	54		46		(20		)	(14		)	34		32
Total	54		46		(20		)	(14		)	34		32
Derivatives not accounted for as hedges:
Foreign exchange contracts	—		—		—			—			—		—
Total	$	54	$	46	$	(20	)	$	(14	)	$	34	$	32

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(1) Included within Other current assets ($17 million at June 30, 2015 and $12 million at December 31, 2014) or Other non-current assets ($17 million at June 30, 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)
	June 30, 2015		December 31, 2014		June 30, 2015			December 31, 2014			June 30, 2015		December 31, 2014
Derivatives accounted for as hedges:
Interest rate contracts	$	—	$	—	$	—		$	—		$	—	$	—
Foreign exchange contracts	57		58		(20		)	(14		)	37		44
Total	57		58		(20		)	(14		)	37		44
Derivatives not accounted for as hedges:
Foreign exchange contracts	—		—		—			—			—		—
Total	$	57	$	58	$	(20	)	$	(14	)	$	37	$	44

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(1) Included within Other current liabilities ($36 million at June 30, 2015 and $40 million at December 31, 2014) or Other non-current liabilities ($1 million at June 30, 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 and six months ended June 30, 2015 and 2014 are as follows (in millions):



Three Months Ended June 30, 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	1		3		—		10		14
Total	$	1	$	3	$	—	$	10	$	14



Three Months Ended June 30, 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	5		—		—		10		15
Total	$	5	$	—	$	—	$	10	$	15



Six Months Ended June 30, 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	6		1		—		6		13
Total	$	6	$	1	$	—	$	6	$	13



Six Months Ended June 30, 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	16		—		—		(9		)	7
Total	$	16	$	—	$	—	$	(9	)	$	7



Three Months Ended June 30, 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	$	—	$	—					$	—	$	—
Foreign exchange contracts	1		(1		)	(2		)	5		3
Total	$	1	$	(1	)	$	(2	)	$	5	$	3



Three Months Ended June 30, 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		)	5		2
Total	$	—	$	—	$	(3	)	$	5	$	2



Six Months Ended June 30, 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	1		(1		)	(4		)	(3		)	(7		)
Total	$	1	$	(1	)	$	(5	)	$	(3	)	$	(8	)



Six Months Ended June 30, 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	$	—		$	—	$	(1	)	$	—		$	(1	)
Foreign exchange contracts	(2		)	—		(5		)	(12		)	(19		)
Total	$	(2	)	$	—	$	(6	)	$	(12	)	$	(20	)