Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair value of financial instruments

Following is a summary of the Company’s financial instruments which have been valued at fair value in the Company’s Consolidated Balance Sheets at September 30, 2015 and December 31, 2014:

	Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1)				Fair Value Based on Significant Other Observable Inputs (Level 2)						Total
(dollars in millions)	2015		2014		2015			2014			2015			2014
Cash and cash equivalents:
Cash	$	703	$	616	$	—		$	—		$	703		$	616
Money market funds	827		842		—			—			827			842
Commercial paper	—		—		48			13			48			13
U.S. Treasury securities	—		5		—			—			—			5
U.S. corporate obligations	10		4		—			—			10			4
Non-U.S. bank and other obligations	39		33		—			—			39			33
Short-term investments:
Commercial paper	—		—		96			11			96			11
U.S. Treasury securities	32		51		—			—			32			51
U.S. corporate obligations	140		51		—			—			140			51
U.S. non-governmental agency asset-backed securities	—		—		53			—			53			—
Non-qualified plan assets:
Money market funds	—		1		—			—			—			1
Domestic bond funds	3		3		—			—			3			3
Domestic equity funds	5		5		—			—			5			5
International equity funds	3		3		—			—			3			3
Blended equity funds	5		5		—			—			5			5
Common stock	2		2		—			—			2			2
Derivatives, net asset (liability):
Foreign currency contracts	—		—		(58		)	(99		)	(58		)	(99		)
Total	$	1,769	$	1,621	$	139		$	(75	)	$	1,908		$	1,546

Open derivative contracts

Total gross volume bought (sold) by notional currency and maturity date on open derivative contracts at September 30, 2015 was as follows:

	Notional Amount - Buy				Notional Amount - Sell
(amounts in millions)	2015	2016	2017	Total	2015		2016		2017		2018		Total
Foreign exchange forward contracts -
Notional currency in:
Euro	65	69	37	171	(23	)	(10	)	—		—		(33	)
Malaysian ringgit	143	76	—	219	(16	)	—		—		—		(16	)
Norwegian krone	187	598	32	817	(51	)	(74	)	(4	)	—		(129	)
Pound Sterling	94	22	2	118	(5	)	(1	)	—		—		(6	)
U.S. dollar	16	44	4	64	(282	)	(327	)	(101	)	(1	)	(711	)

Fair values of derivative financial instruments

The fair values of derivative financial instruments recorded in the Company’s Consolidated Condensed Balance Sheets at September 30, 2015 and December 31, 2014 were as follows:

	September 30, 2015				December 31, 2014
(dollars in millions)	Assets		Liabilities		Assets		Liabilities
Derivatives designated as hedging instruments:
Current	$	10	$	62	$	8	$	83
Non-current	4		4		1		12
Total derivatives designated as hedging instruments	14		66		9		95
Derivatives not designated as hedging instruments:
Current	—		6		1		14
Non-current	—		—		—		—
Total derivatives not designated as hedging instruments	—		6		1		14
Total derivatives	$	14	$	72	$	10	$	109

Pre-tax gain (loss) from ineffective portion of derivatives

The amount of pre-tax loss from the ineffective portion of derivatives designated as hedging instruments and from derivatives not designated as hedging instruments was:

	Three Months Ended   September 30,				Nine Months Ended   September 30,
(dollars in millions)	2015		2014		2015		2014
Derivatives designated as hedging instruments -
Cost of sales	$	1	$	4	$	—	$	3
Derivatives not designated as hedging instruments -
Cost of sales	11		6		20		4
Other costs	—		4		11		4
Total pre-tax loss	$	12	$	14	$	31	$	11