Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2011

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Interest Rate Swap Derivatives

US-dollar interest rate swap derivative arrangements are as follows:



As of December 31, 2011
Notional Value	Effective Date	Expiration Date	Fixed Rate ⁽¹⁾
(In $ millions)
800	April 2, 2007	January 2, 2012	4.92	%
400	January 2, 2008	January 2, 2012	4.33	%
200	April 2, 2009	January 2, 2012	1.92	%
1,100	January 2, 2012	January 2, 2014	1.71	%

______________________________


⁽¹⁾	Fixes the LIBOR portion of the Company's US-dollar denominated variable rate borrowings (Note 13).

On February 1, 2012, the Company executed forward-starting interest rate swaps with a total notional amount of $500 million. As a result of these swaps, the Company has fixed the LIBOR portion of $500 million of the Company's variable rate borrowings at 1.02% effective January 2, 2014 through January 2, 2016.



As of December 31, 2010
Notional Value	Effective Date	Expiration Date	Fixed Rate ⁽¹⁾
(In $ millions)
100	April 2, 2007	January 2, 2011	4.92	%
800	April 2, 2007	January 2, 2012	4.92	%
400	January 2, 2008	January 2, 2012	4.33	%
200	April 2, 2009	January 2, 2012	1.92	%
1,100	January 2, 2012	January 2, 2014	1.71	%

______________________________


⁽¹⁾	Fixes the LIBOR portion of the Company's US-dollar denominated variable rate borrowings (Note 13).

Euro interest rate swap derivative arrangements are as follows:



As of December 31, 2010
Notional Value	Effective Date	Expiration Date	Fixed Rate ⁽¹⁾
(In € millions)
150	April 2, 2007	April 2, 2011	4.04	%

______________________________


⁽¹⁾	Fixes the EURIBOR portion of the Company's Euro denominated variable rate borrowings (Note 13).

Schedule of Interest Rate Swap Activity Recorded in the Consolidated Financial Statements

Interest rate swap activity is as follows:



	Year Ended December 31,
	2011		2010		2009
	(In $ millions)
Hedging activities - Interest Expense	(59	)	(68	)	(63	)
Ineffective portion - Other income (expense), net	—		—		—

Schedule of Notional Amounts of Net Foreign Exchange Exposure by Currency



	2012 Maturity
	(In $ millions)
Currency
Euro	(348	)
British pound sterling	(10	)
Chinese renminbi	(84	)
Mexican peso	19
Singapore dollar	43
Canadian dollar	42
Japanese yen	1
Brazilian real	(11	)
Swedish krona	5
Other	5
Total	(338	)

Schedule of Notional Amounts of Foreign Currency Derivatives

Gross notional values of the foreign currency forwards and swaps are as follows:



	As of December 31,
	2011	2010
	(In $ millions)
Total	896	751

Schedule of Changes in Fair Value of Derivatives

Information regarding changes in the fair value of the Company’s derivative arrangements is as follows:



	Year Ended December 31, 2011						Year Ended December 31, 2010						Year Ended December 31, 2009
	Gain (Loss) Recognized in Other Comprehensive Income (Loss)			Gain (Loss) Recognized in Earnings			Gain (Loss) Recognized in Other Comprehensive Income (Loss)			Gain (Loss) Recognized in Earnings			Gain (Loss) Recognized in Other Comprehensive Income (Loss)				Gain (Loss) Recognized in Earnings
	(In $ millions)
Derivatives designated as cash flow hedging instruments
Interest rate swaps	(24	)	⁽¹⁾	(59	)	⁽²⁾	(31	)	⁽³⁾	(68	)	⁽²⁾	(40	)	⁽⁴	⁾	(63	)	⁽²	⁾
Derivatives not designated as hedging instruments
Foreign currency forwards and swaps	—			(15	)	⁽⁵⁾	—			33		⁽⁵⁾	—				(20	)	⁽⁵⁾
Total	(24	)		(74	)		(31	)		(35	)		(40	)			(83	)

___________________________


⁽¹⁾	Amount excludes $2 million of gains associated with the Company’s equity method investments’ derivative activity and $10 million of tax expense recognized in Other comprehensive income (loss).


⁽²⁾	Amount represents reclassification from Accumulated other comprehensive income (loss), net and is included in Interest expense in the consolidated statements of operations.


⁽³⁾	Amount excludes $5 million of gains associated with the Company’s equity method investments’ derivative activity and $15 million of tax expense recognized in Other comprehensive income (loss).


⁽⁴⁾	Amount excludes $8 million of tax expense.


⁽⁵⁾	Included in Foreign exchange gain (loss), net for operating activity or Other income (expense), net for non-operating activity in the consolidated statements of operations.

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References+ Details