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Derivative Instruments and Hedging Activities (Tables)
3 Months Ended
Mar. 31, 2014
Fair Values of Outstanding Derivative Instruments

The fair values of outstanding derivative instruments are as follows:

 

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value of Derivatives

 

 

Classification

 

Mar. 31,

 

 

Dec. 31,

 

 

 

Derivative Assets

2014

 

 

2013

 

 

 

Derivatives designated as hedges:

 

 

 

 

 

 

 

 

 

Foreign exchange contracts

$

22

 

 

$

98

 

 

Other current assets

Foreign exchange contracts

 

24

 

 

 

24

 

 

Other Assets

Interest rate swaps

 

20

 

 

 

27

 

 

Other Assets

 

$

66

 

 

$

149

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives not designated as hedges:

 

 

 

 

 

 

 

 

 

Foreign exchange contracts

$

4

 

 

$

10

 

 

Other current assets

Foreign exchange contracts

 

4

 

 

 

4

 

 

Other Assets

 

$

8

 

 

$

14

 

 

 

 

$

74

 

 

$

163

 

 

 

Derivative Liabilities

 

 

 

 

 

 

 

 

 

Derivatives designated as hedges:

 

 

 

 

 

 

 

 

 

Foreign exchange contracts

$

7

 

 

$

14

 

 

Accounts payable and accrued liabilities

Foreign exchange contracts

 

1

 

 

 

1

 

 

Other Liabilities

 

$

8

 

 

$

15

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives not designated as hedges:

 

 

 

 

 

 

 

 

 

Foreign exchange contracts

$

11

 

 

$

2

 

 

Accounts payable and accrued liabilities

 

 

 

 

 

 

 

 

 

 

 

$

19

 

 

$

17

 

 

 

 

Effect of Derivative Instruments Designated as Fair Value Hedges and Not Designated as Hedges on Consolidated Statement of Income

The effect of derivative instruments designated as fair value hedges and those not designated as hedges on the Consolidated Statement of Income was as follows:

 

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (Loss) Recognized in Income

 

 

 

 

First Quarter

 

 

 

 

2014

 

 

2013

 

 

Classification

Derivatives designated as fair value hedges:

 

 

 

 

 

 

 

 

 

Interest rate swaps

$

(1

)

 

$

(1

)

 

Interest expense

 

 

 

 

 

 

 

 

 

 

Derivatives not designated as hedges:

 

 

 

 

 

 

 

 

 

Foreign exchange contracts

$

13

 

 

$

(22

)

 

Cost of revenue

 

Effect of Derivative Instruments in Cash Flow Hedging Relationships on Income and Accumulated Other Comprehensive Loss (AOCL)

The effect of derivative instruments in cash flow hedging relationships on income and Accumulated other Comprehensive Loss (AOCL) was as follows:

 

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (Loss) Reclassified

from AOCL into Income

 

 

 

 

First Quarter

 

 

 

 

2014

 

 

2013

 

 

Classification

Foreign exchange contracts

$

3

 

 

$

(80

)

 

Cost of revenue

 

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (Loss)

 

 

 

 

Recognized

 

 

 

 

in AOCL

 

 

 

 

First Quarter

 

 

 

 

2014

 

 

2013

 

 

 

Foreign exchange contracts

$

16

 

 

$

(154

)