Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2016

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 March 31, 2016 and December 31, 2015 were as follows:

	Balance Sheet Location	March 31, 2016		December 31, 2015
		(In millions)
Derivative Assets:
Foreign exchange contracts designated as cash flow hedges	Other Current Assets	$	54	$	42
Foreign exchange contracts not designated as hedging instruments	Other Current Assets	32		14
Interest rate contracts designated as fair value hedges	Other Assets	104		41
Total derivative assets		$	190	$	97
Derivative Liabilities:
Foreign exchange contracts designated as cash flow hedges	Other Current Liabilities	$	12	$	1
Foreign exchange contracts not designated as hedging instruments	Other Current Liabilities	50		24
Total derivative liabilities		$	62	$	25
Total fair value of derivative instruments		$	128	$	72

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 March 31, 2016 and December 31, 2015, and the impact of these derivative contracts on accumulated other comprehensive income for the three months ended March 31, 2016: 

	December 31, 2015		Amount of gain (loss) recognized in other comprehensive income (effective portion)		Amount of gain (loss) reclassified from accumulated other comprehensive income to earnings (effective portion)		March 31, 2016
	(In millions)
Foreign exchange contracts designated as cash flow hedges	$	36	$	19	$	16	$	39

The following table summarizes the activity of derivative contracts that qualify for hedge accounting as of March 31, 2015 and December 31, 2014, and the impact of these derivative contracts on accumulated other comprehensive income for the three months ended March 31, 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 earnings (effective portion)		March 31, 2015
	(In millions)
Foreign exchange contracts designated as cash flow hedges	$	41	$	45	$	20	$	66

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 March 31,
	2016			2015
	(In millions)
Foreign exchange contracts designated as cash flow hedges recognized in cost of net revenues and operating expenses	$	4		$	20
Foreign exchange contracts designated as cash flow hedges recognized in interest and other, net	12			—
Foreign exchange contracts not designated as hedging instruments recognized in interest and other, net	(2		)	16
Total gain (loss) recognized from foreign exchange derivative contracts in the condensed consolidated statement of income	$	14		$	36

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 March 31,
	2016			2015
	(In millions)
Gain (loss) from interest rate contracts designated as fair value hedges recognized in interest and other, net	$	63		$	37
Gain (loss) from hedged items attributable to hedged risk recognized in interest and other, net	(63		)	(37		)
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:

	March 31,
	2016		2015
	(In millions)
Foreign exchange contracts designated as cash flow hedges	$	1,542	$	489
Foreign exchange contracts not designated as hedging instruments	2,864		2,256
Interest rate contracts designated as fair value hedges	2,400		2,400
Total	$	6,806	$	5,145