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Derivative Instruments and Hedging Activities (Tables)
 9 Months Ended
Sep. 30, 2014
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Fair Values of Outstanding Derivative Instruments

The fair values of outstanding derivative instruments were as follows:

 

 

(Stated in millions)

 

 

 

 

Fair Value of Derivatives

 

 

Consolidated Balance Sheet Classification

 

Sept. 30,

 

 

Dec. 31,

 

 

 

 

2014

 

 

2013

 

 

 

Derivative Assets

 

 

 

 

 

 

 

 

 

Derivatives designated as hedges:

 

 

 

 

 

 

 

 

 

Foreign exchange contracts

$

3

 

 

$

98

 

 

Other current assets

Foreign exchange contracts

 

2

 

 

 

24

 

 

Other Assets

Interest rate swap

 

—

 

 

 

27

 

 

Other Assets

 

$

5

 

 

$

149

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives not designated as hedges:

 

 

 

 

 

 

 

 

 

Foreign exchange contracts

$

10

 

 

$

10

 

 

Other current assets

Foreign exchange contracts

 

—

 

 

 

4

 

 

Other Assets

 

$

10

 

 

$

14

 

 

 

 

$

15

 

 

$

163

 

 

 

Derivative Liabilities

 

 

 

 

 

 

 

 

 

Derivatives designated as hedges:

 

 

 

 

 

 

 

 

 

Foreign exchange contracts

$

42

 

 

$

14

 

 

Accounts payable and accrued liabilities

Foreign exchange contracts

 

83

 

 

 

1

 

 

Other Liabilities

Interest rate swap

 

15

 

 

 

—

 

 

Other Liabilities

 

$

140

 

 

$

15

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives not designated as hedges:

 

 

 

 

 

 

 

 

 

Foreign exchange contracts

$

10

 

 

$

2

 

 

Accounts payable and accrued liabilities

 

 

 

 

 

 

 

 

 

 

 

$

150

 

 

$

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

 

 

 

 

Third Quarter

 

 

Nine Months

 

 

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

 

Consolidated Statement of Income Classification

Derivatives designated as fair value hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap

$

(44

)

 

$

—

 

 

$

(53

)

 

$

(2

)

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives not designated as hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange contracts

$

(26

)

 

$

31

 

 

$

(21

)

 

$

8

 

 

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

 

 

 

 

Third Quarter

 

 

Nine Months

 

 

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

 

Consolidated Statement of Income Classification

Foreign exchange contracts

$

(54

)

 

$

33

 

 

$

(62

)

 

$

(8

)

 

Cost of revenue

Foreign exchange contracts

 

1

 

 

 

(3

)

 

 

3

 

 

 

(7

)

 

Research & engineering

 

$

(53

)

 

$

30

 

 

$

(59

)

 

$

(15

)

 

 

 

 

(Stated in millions)

 

 

Gain (Loss) Recognized in AOCL

 

 

Third Quarter

 

 

Nine Months

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

Foreign exchange contracts

$

(151

)

 

$

76

 

 

$

(138

)

 

$

(27

)