XML 41 R30.htm IDEA: XBRL DOCUMENT v3.3.0.814
Derivative Instruments (Tables)
 9 Months Ended
Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of fair value of outstanding derivative instruments
The fair values of our outstanding derivative instruments as of September 30, 2015 and December 31, 2014 were as follows:
 
Balance Sheet Location
 
September 30,
2015
 
December 31,
2014
 
 
 
(In millions)
Derivative Assets:
 
 
 
 
 
Foreign exchange contracts designated as cash flow hedges
Other Current Assets
 
$
30

 
$
42

Foreign exchange contracts not designated as hedging instruments
Other Current Assets
 
32

 
20

Interest rate contracts designated as fair value hedges
Other Assets
 
77

 
22

Total derivative assets
 
 
$
139

 
$
84

 
 
 
 
 
 
Derivative Liabilities:
 
 
 
 
 
Foreign exchange contracts designated as cash flow hedges
Other Current Liabilities
 
$
5

 
$
—

Foreign exchange contracts not designated as hedging instruments
Other Current Liabilities
 
27

 
20

Total derivative liabilities
 
 
$
32

 
$
20

 
 
 
 
 
 
Total fair value of derivative instruments
 
 
$
107

 
$
64
Impact of derivative contracts on accumulated other comprehensive income
The following table summarizes the activity of derivative contracts that qualify for hedge accounting as of September 30, 2015 and December 31, 2014, and the impact of these derivative contracts on accumulated other comprehensive income for the nine months ended September 30, 2015: 
 
December 31, 2014
 
Amount of gain (loss)
recognized in other
comprehensive income
(effective portion) 
 
Amount of gain (loss)
reclassified from
accumulated other
comprehensive income
to net revenue and operating expense
(effective portion)
 
September 30, 2015
 
(In millions)
Foreign exchange contracts designated as cash flow hedges
$
41

 
$
29

 
$
51

 
$
19


The following table summarizes the activity of derivative contracts that qualify for hedge accounting as of September 30, 2014 and December 31, 2013, and the impact of these derivative contracts on accumulated other comprehensive income for the nine months ended September 30, 2014:
 
December 31, 2013
 
Amount of gain (loss)
recognized in other
comprehensive income
(effective portion) 
 
Amount of gain (loss)
reclassified from
accumulated other
comprehensive income
to net revenue and operating expense
(effective portion)
 
September 30, 2014
 
(In millions)
Foreign exchange contracts designated as cash flow hedges
$
(15
)
 
$
42

 
$
(8
)
 
$
35
Recognized gains or losses related to derivative instruments
The following table provides the location in our financial statements of the recognized gains or losses related to our foreign exchange derivative instruments: 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015

2014
 
2015
 
2014
 
(In millions)
Foreign exchange contracts designated as cash flow hedges recognized in cost of net revenues and operating expenses
$
19

 
$
—

 
$
51

 
$
(8
)
Foreign exchange contracts not designated as hedging instruments recognized in interest and other, net
13

 
13

 
(2
)
 
(1
)
Total gain (loss) recognized from foreign exchange derivative contracts in the condensed consolidated statement of income
$
32

 
$
13

 
$
49

 
$
(9
)

$8 million in net derivative gains and $8 million in net derivative losses recognized in interest and other, net, during the three and nine months ended September 30, 2015, respectively, pertained to foreign exchange contracts not designated as hedging instruments used to mitigate the effect of translation in future periods.

The following table provides the location in our financial statements of the recognized gains or losses related to our interest rate derivative instruments: 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
 
(In millions)
Gain (loss) from interest rate contracts designated as fair value hedges recognized in interest and other, net
$
56

 
$
(10
)
 
$
55

 
$
(10
)
Gain (loss) from hedged items attributable to hedged risk recognized in interest and other, net
(56
)
 
10

 
(55
)
 
10

Total gain (loss) recognized from interest rate derivative contracts in the condensed consolidated statement of income
$
—

 
$
—

 
$
—

 
$
—
Notional amounts of outstanding derivatives
The following table provides the notional amounts of our outstanding derivatives:
 
September 30,
 
2015
 
2014
 
(In millions)
Foreign exchange contracts designated as cash flow hedges
$
705

 
$
429

Foreign exchange contracts not designated as hedging instruments
2,890

 
2,275

Interest rate contracts designated as fair value hedges
2,400

 
2,400

Total
$
5,995

 
$
5,104