Fair Values Of Assets And Liabilities

9 Months Ended

Sep. 30, 2014

Fair Values of Assets and Liabilities

Refer to Note 10 - "Fair Values of Assets and Liabilities" to the consolidated financial statements in our Form 10-K for further discussion of valuation techniques and fair value measurement levels.

Assets and liabilities itemized below were measured at fair value on a recurring basis, using either the market approach (i), the cost approach (ii) or the income approach (iii) (in millions):



		Fair Value
	Level	September 30, 2014		December 31, 2013
Assets
Money market funds^(i)(a)	1	$	2,318	$	1,452
Derivatives not designated as hedging instruments:
Interest rate swaps⁽ⁱⁱⁱ⁾	3	15		11
Interest rate caps⁽ⁱ⁾	2	11		7
Foreign currency swaps⁽ⁱ⁾	2	—		3
Total assets		$	2,344	$	1,473
Liabilities
Derivatives not designated as hedging instruments:
Interest rate swaps⁽ⁱⁱⁱ⁾	3	$	38	$	17
Interest rate caps⁽ⁱ⁾	2	11		7
Foreign currency swaps⁽ⁱ⁾	2	20		29
Total liabilities		$	69	$	53

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(a)	Excludes cash in banks of $1.3 billion and $1.6 billion at September 30, 2014 and December 31, 2013.

The tables below present a reconciliation for interest rate swap agreements measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in millions):



	Three Months Ended September 30,
	2014						2013
	Assets			Liabilities			Assets			Liabilities
Balance at beginning of period	$	17		$	(34	)	$	7		$	(20	)
Total realized and unrealized gains included in earnings	(1		)	(11		)	2			1
Purchases	—			—			—			—
Settlements	(1		)	5			(3		)	7
Foreign currency translation	—			2			2			(4		)
Balance at end of period	$	15		$	(38	)	$	8		$	(16	)



	Nine Months Ended September 30,
	2014						2013
	Assets			Liabilities			Assets			Liabilities
Balance at beginning of period	$	11		$	(17	)	$	—		$	—
Total realized and unrealized gains included in earnings	5			(37		)	4			(4		)
Purchases	—			—			7			(19		)
Settlements	(1		)	14			(5		)	10
Foreign currency translation	—			2			2			(3		)
Balance at end of period	$	15		$	(38	)	$	8		$	(16	)

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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