Off-Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2014

Off Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments [Abstract]

Fair value of financial instruments in the balance sheet

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 December 31, 2014 and 2013:

	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)	2014		2013		2014			2013		2014			2013
Cash and cash equivalents:
Cash	$	616	$	618	$	–		$	–	$	616		$	618
Money market funds		842		1,172		–			–		842			1,172
Commercial paper		–		–		13			4		13			4
U.S. treasury securities		5		–		–			–		5			–
U.S. corporate obligations		4		–		–			–		4			–
Non-U.S. bank and other obligations		33		19		–			–		33			19
Short-term investments:
Commercial paper		–		–		11			–		11			–
U.S. Treasury securities		51		41		–			–		51			41
U.S. corporate obligations		51		–		–			–		51			–
Non-qualified plan assets:
Money market funds		1		1		–			–		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		4		–			–		5			4
Common stock		2		2		–			–		2			2
Derivatives, net asset (liability):
Foreign currency contracts		–		–		(99	)		19		(99	)		19
Total financial instruments	$	1,621	$	1,868	$	(75	)	$	23	$	1,546		$	1,891

Information relating to the contracts and estimated fair values recorded in the Company's Consolidated Balance Sheets

Total gross volume bought (sold) by notional currency and maturity date on open foreign currency forward contracts at December 31, 2014 was as follows:

	Notional Amount - Buy								Notional Amount - Sell
(in millions)	2015		2016		2017		Total		2015			2016			Total
Foreign exchange forward contracts -
Notional currency in:
Euro		200		14		–		214		(10	)		(1	)		(11	)
Malaysian ringgit		377		51		–		428		(29	)		–			(29	)
Norwegian krone		895		117		4		1,016		(96	)		(44	)		(140	)
Pound Sterling		110		5		–		115		(22	)		(1	)		(23	)
U.S. dollar		60		–		–		60		(635	)		(47	)		(682	)
Foreign exchange option contracts -
Notional currency in:
U.S. dollar		87		–		–		87		–			–			–

Schedule of fair values of derivative financial instruments of balance sheets

The fair values of derivative financial instruments recorded in the Company’s Consolidated Balance Sheets were as follows:

	December 31,
	2014				2013
(dollars in millions)	Assets		Liabilities		Assets		Liabilities
Derivatives designated as hedges:
Foreign exchange contracts –
Current	$	8	$	83	$	28	$	10
Non-current		1		12		3		2
Total derivatives designated as hedges		9		95		31		12
Derivatives not designated as hedges:
Foreign exchange contracts –
Current		1		14		6		6
Non-current		–		–		–		–
Total derivatives not designated as hedges		1		14		6		6
Total derivatives	$	10	$	109	$	37	$	18

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

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

	Year Ended December 31,
(dollars in millions)	2014			2013			2012
Derivatives designated as hedging instruments:
Foreign currency contracts –
Cost of sales	$	(7	)	$	1		$	–
Derivatives not designated as hedging instruments:
Foreign currency contracts –
Cost of sales		(11	)		7			2
Other costs		(8	)		(1	)		16
Total pre-tax gain (loss)	$	(26	)	$	7		$	18