Derivative Financial Instruments

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

Interest Rate Swaps

The Company fixes the LIBOR portion of its US dollar denominated variable rate borrowings (Note 14) with interest rate swap derivative arrangements as follows:

As of December 31, 2014
Notional Value	Effective Date	Expiration Date	Fixed Rate
(In $ millions)			(In percentages)
500	January 2, 2014	January 2, 2016	1.02

As of December 31, 2013
Notional Value	Effective Date	Expiration Date	Fixed Rate
(In $ millions)			(In percentages)
1,100	January 2, 2012	January 2, 2014	1.71
500	January 2, 2014	January 2, 2016	1.02

Foreign Currency Forwards and Swaps

All of the contracts included in the table below will have approximately offsetting effects from actual underlying payables, receivables, intercompany loans or other assets or liabilities subject to foreign exchange remeasurement. The total US dollar equivalents of net foreign exchange exposure related to (short) long foreign exchange forward contracts outstanding by currency are as follows:

	2015 Maturity
	(In $ millions)
Currency
Brazilian real	(13	)
British pound sterling	(78	)
Canadian dollar	33
Chinese renminbi	(151	)
Euro	735
Hungarian forint	10
Mexican peso	(23	)
Singapore dollar	35
Total	548

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

	As of December 31,
	2014	2013
	(In $ millions)
Total	1,336	869

During the three months ended September 30, 2014, the Company designated the €300 million of the principal amount of its 3.250% Notes as a net investment hedge of its investment in a wholly-owned international subsidiary whose functional currency is the Euro to mitigate the volatility caused by the changes in foreign currency exchange rates of the Euro with respect to the US dollar. Gains and losses from remeasurement of the 3.250% Notes were included in foreign currency translation within Accumulated other comprehensive income (loss), net in the consolidated balance sheets.

The Company's cross-currency swap agreements are as follows:

As of December 31, 2014
Notional Value		Effective Date	Expiration Date	Fixed Rate
(In millions)				(In percentages)
$250	(1)	September 11, 2014	September 11, 2020	4.27
€193	(2)	September 11, 2014	September 11, 2020	2.63
$225	(1)	April 17, 2014	April 17, 2019	3.62
€162	(2)	April 17, 2014	April 17, 2019	2.77

______________________________

⁽¹⁾  Represents the notional amount due from the counterparty at the maturity of the contract.

⁽²⁾  Represents the notional amount due to the counterparty at the maturity of the contract.

Hedging activity for interest rate swaps and cross-currency swaps is as follows:

	Year Ended December 31,						Statement of Operations Classification
	2014		2013		2012
	(In $ millions)
Hedging activities	(4	)	(11	)	(14	)	Interest expense
Ineffective portion of hedging activities	—		—		—		Other income (expense), net

Information regarding changes in the fair value of the Company's derivative and non-derivative instruments is as follows:

	Gain (Loss) Recognized in Other Comprehensive Income (Loss)						Gain (Loss) Recognized in Earnings (Loss)								Statement of Operations Classification
	Year Ended December 31,						Year Ended December 31,
	2014		2013		2012		2014			2013		2012
	(In $ millions)
Designated as Cash Flow Hedges
Interest rate swaps	(1	)	(2	)	(12	)	(4	)		(11	)	(14	)		Interest expense
Cross-currency swaps	(8	)	—		—		46			—		—			Other income (expense), net or Interest expense
Total	(9	)	(2	)	(12	)	42			(11	)	(14	)
Designated as a Net Investment Hedge
3.250% Notes	23		—		—		—			—		—			Foreign currency translation
Not Designated as Hedges
Interest rate swaps	—		—		—		(3	)	(1)	—		(6	)	(2)	Interest expense
Foreign currency forwards and swaps	—		—		—		(15	)		(23	)	(6	)		Foreign exchange gain (loss), net or Other income (expense), net

______________________________

⁽¹⁾  In December 2014, the Company dedesignated as cash flow hedges a notional value of $500 million US dollar interest rate swap agreements expiring January 2, 2016.

⁽²⁾  In conjunction with the paydown of the Term C loan facility in November 2012 (Note 14), the Company dedesignated as cash flow hedges a notional value of $395 million US dollar interest rate swap agreements expiring January 2, 2014.

See Note 23 - Fair Value Measurements for additional information regarding the fair value of the Company's derivative agreements.

Certain of the Company's foreign currency forwards and swaps, interest rate swaps and cross-currency swap arrangements permit the Company to net settle all contracts with the counterparty through a single payment in an agreed upon currency in the event of default or early termination of the contract, similar to a master netting arrangement. The Company's interest rate swap agreements are subject to cross collateralization under the Guarantee and Collateral Agreement entered into in conjunction with the Term loan borrowings (Note 14).

Information regarding the gross amounts of the Company's derivative instruments and the amounts offset in the consolidated balance sheets is as follows:

	As of December 31,
	2014	2013
	(In $ millions)
Derivative Assets
Gross amount recognized	55	1
Gross amount offset in the consolidated balance sheets	—	—
Net amount presented in the consolidated balance sheets	55	1
Gross amount not offset in the consolidated balance sheets	4	1
Net amount	51	—

	As of December 31,
	2014	2013
	(In $ millions)
Derivative Liabilities
Gross amount recognized	23	16
Gross amount offset in the consolidated balance sheets	—	1
Net amount presented in the consolidated balance sheets	23	15
Gross amount not offset in the consolidated balance sheets	4	1
Net amount	19	14