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Other Comprehensive (Loss) Income
 12 Months Ended
Dec. 31, 2015
Equity [Abstract]  
Other Comprehensive (Loss) Income
Other Comprehensive (Loss) Income
Stockholders’ equity includes certain items classified as other comprehensive income (loss), including:
•
Unrealized (loss) gain on anticipated sales hedging transactions relate to derivative instruments used to hedge the exposure related to currency exchange rates for forecasted Euro sales. These hedges are designated as cash flow hedges, and the Company defers income statement recognition of gains and losses until the hedged transaction occurs. See Note 13 Derivative Instruments.
•
Unrealized (loss) gain on forward interest rate swaps hedging transactions refer to the hedging of the interest rate risk exposure associated with the variable rate commitment entered into for the Acquisition. See Note 13 Derivative Instruments for more details.
•
Unrealized (loss) gain on investments are deferred from the Consolidated Statements of Operations recognition until the gains or losses are realized.
•
Foreign currency translation adjustment relates to the Company's non-U.S. subsidiary companies that have designated a functional currency other than the U.S. dollar. The Company is required to translate the subsidiary functional currency financial statements to dollars using a combination of historical, period-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustment component of other comprehensive income.
The components of accumulated other comprehensive (loss) income ("AOCI") for each of the three years ended December 31 are as follows (in millions):
 
 
Unrealized losses) gains on sales hedging
 
Unrealized (losses)/ gains on forward interest rate swaps
 
Unrealized gains (losses) on investments
 
Currency Translation Adjustments
 
Total
Balance at December 31, 2012
$
(2
)
 
$
—

 
$
—

 
$
(8
)
 
$
(10
)
 
Other comprehensive (loss)/income before reclassifications
(3
)
 
—

 
—

 
1

 
(2
)
 
Amounts reclassified from AOCI
3

 
—

 
—

 
—

 
3

 
Tax (expense) benefit
—

 
—

 
—

 
—

 
—

 
Other comprehensive income/(loss)
—

 
—

 
—

 
1

 
1

Balance at December 31, 2013
(2
)
 
—

 
—

 
(7
)
 
(9
)
 
Other comprehensive income/(loss) before reclassifications
8

 
(12
)
 
—

 
1

 
(3
)
 
Amounts reclassified from AOCI
1

 
—

 
—

 
—

 
1

 
Tax (expense) benefit
(2
)
 
4

 
—

 
—

 
2

 
Other comprehensive income/(loss)
7

 
(8
)
 
—

 
1

 
—

Balance at December 31, 2014
5

 
(8
)
 
—

 
(6
)
 
(9
)
 
Other comprehensive income/(loss) before reclassifications
7

 
(12
)
 
—

 
(12
)
 
(17
)
 
Amounts reclassified from AOCI
(15
)
 
1

 
—

 
(15
)
 
(29
)
 
Tax benefit (expense)
2

 
4

 
—

 
—

 
6

 
Other comprehensive (loss)/ income
(6
)
 
(7
)
 
—

 
(27
)
 
(40
)
Balance at December 31, 2015
$
(1
)
 
$
(15
)
 
$
—

 
$
(33
)
 
$
(49
)












Reclassification out of AOCI to earnings were as follows (in millions):
 
 
 
Year Ended December 31,
Comprehensive Income Components
Financial Statement Line Item
 
2015
 
2014
 
2013
Unrealized (gain) loss on sales hedging:
 
 
 
 
 
 
 
   Total before tax
Net sales of tangible products
 
$
(15
)
 
$
1

 
$
3

   Tax (benefit) expense
 
 
3

 
—

 
(1
)
   Net of taxes
 
 
(12
)
 
1

 
2

Unrealized loss/(gain) on forward interest rate swaps:
 
 
 
 
 
 
 
   Total before tax
Interest expense/(income)
 
1

 
—

 
—

   Tax expense (benefit)
 
 
—

 
—

 
—

   Net of taxes
 
 
1

 
—

 
—

Unrealized (gain) loss on investments
 
 
 
 
 
 
 
  Total before tax
Other (expense) income – Other, net
 
—

 
—

 
—

  Tax expense (benefit)
 
 
—

 
—

 
—

  Net of taxes
 
 
—

 
—

 
—

Cumulative Foreign Currency Translation
Foreign exchange income (loss)
 
(15
)
 
—

 
—

Total amounts reclassified from AOCI
 
 
$
(26
)
 
$
1

 
$
2