Derivative Financial Instruments

12 Months Ended

Dec. 31, 2015

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, 2015
Notional Value	Effective Date	Expiration Date	Fixed Rate
(In $ millions)			(In percentages)
500	January 2, 2014	January 2, 2016	0.94

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

Cross-currency Swaps

In March 2015, the Company settled its cross-currency swap agreements with notional values of $250 million/€193 million, expiring on September 11, 2020, and $225 million/€162 million, expiring on April 17, 2019, in exchange for cash of $88 million. The Company recorded a net loss of $1 million, which is included in Other income (expense), net in the consolidated statement of operations. The Company classifies cash flows from derivative instruments designated as cash flow hedges in the same category of the consolidated statement of cash flows as the cash flows from the items being hedged. Accordingly, the settlement of the cross-currency swap agreements is included in Net cash provided by (used in) operating activities in the consolidated statement of cash flows for the year endedDecember 31, 2015.

Foreign Currency Forwards and Swaps

Each 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:

	2016 Maturity
	(In $ millions)
Currency
Brazilian real	(10	)
British pound sterling	(88	)
Canadian dollar	25
Euro	127
Hungarian forint	8
Korean won	9
Mexican peso	(31	)
Singapore dollar	22
Swedish krona	8
Total	70

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

	As of December 31,
	2015	2014
	(In $ millions)
Total	502	1,336

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

	Year Ended December 31,					Statement of Operations Classification
	2015	2014		2013
	(In $ millions)
Hedging activities	2	(4	)	(11	)	Interest income (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,
	2015	2014		2013		2015		2014			2013
	(In $ millions)
Designated as Cash Flow Hedges
Interest rate swaps	—	(1	)	(2	)	—		(4	)		(11	)	Interest expense
Cross-currency swaps	—	(8	)	—		46		46			—		Other income (expense), net or Interest expense
Total	—	(9	)	(2	)	46		42			(11	)
Designated as a Net Investment Hedge
3.250% Notes	38	23		—		—		—			—		Foreign currency translation
Term C-2 and Term C-3 loans(2)	10	—		—		—		—			—		Foreign currency translation
Total	48	23		—		—		—			—
Not Designated as Hedges
Interest rate swaps	—	—		—		(1	)	(3	)	(1)	—		Interest expense
Foreign currency forwards and swaps	—	—		—		(82	)	(15	)		(23	)	Foreign exchange gain (loss), net or Other income (expense), net
Total	—	—		—		(83	)	(18	)		(23	)

______________________________

⁽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⁾  During the three months ended March 31, 2015, the Company designated the Euro-based principal amount of its Term C-2 loan and its Term C-3 loan 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. During the three months ended December 31, 2015, the Company dedesignated the Euro-based principal amount of its Term C-3 loan as a net investment hedge.

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 and interest rate swaps 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,
	2015	2014
	(In $ millions)
Derivative Assets
Gross amount recognized	2	55
Gross amount offset in the consolidated balance sheets	—	—
Net amount presented in the consolidated balance sheets	2	55
Gross amount not offset in the consolidated balance sheets	—	4
Net amount	2	51

	As of December 31,
	2015	2014
	(In $ millions)
Derivative Liabilities
Gross amount recognized	2	23
Gross amount offset in the consolidated balance sheets	—	—
Net amount presented in the consolidated balance sheets	2	23
Gross amount not offset in the consolidated balance sheets	—	4
Net amount	2	19