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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 9 Months Ended
Sep. 30, 2013
Derivative Financial Instruments Table [Abstract]  
Schedule of Derivative Financial Instruments

The fair values of assets and liabilities associated with the Company's derivative financial instruments recorded in the consolidated balance sheet as of September 30, 2013 and December 31, 2012 were as follows (in millions):

           Assets Liabilities
           September 30, December 31, September 30, December 31,
           2013 2012 2013 2012
Interest rate swaps(a)(b)$ 166 $ 295 $ 31 $ 1
Cross-currency swaps(a)(c)  252   112   —   —
Equity award reimbursement obligation(d)  —   —   12   19
Total$ 418 $ 407 $ 43 $ 20

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  • The Company's interest rate swap and cross-currency swap contracts with multiple counterparties are subject to contractual terms that provide for the net settlement of all such contracts with each counterparty through a single payment in the event of default on or termination of any one contract by either party. The fair values of assets and liabilities associated with interest rate swaps and cross-currency swaps are presented on a gross basis in the consolidated balance sheet and are classified as current or noncurrent based on the maturity date of the respective contract.
  • Of the total amount of interest rate swap assets recorded as of September 30, 2013 and December 31, 2012, $19 million and $16 million, respectively, is recorded in other current assets in the consolidated balance sheet. The total amount of interest rate swap liabilities recorded as of September 30, 2013 and December 31, 2012 is recorded in other liabilities in the consolidated balance sheet.
  • The fair values of the assets and liabilities associated with cross-currency swaps are recorded in other assets and other liabilities, respectively, in the consolidated balance sheet.
  • The fair value of the equity award reimbursement obligation is recorded in other current liabilities in the consolidated balance sheet.
Schedule of Interest Rate Swap Contract Terms

The following table summarizes the terms of the Company's existing fixed to variable interest rate swaps as of September 30, 2013 and December 31, 2012:

                 September 30, December 31,
                 2013 2012
Maturities2014-2019 2013-2018
Notional amount (in millions)$ 7,550 $ 7,750
Weighted-average pay rate (variable based on LIBOR plus variable margins) 4.82%  4.35%
Weighted-average receive rate (fixed) 6.80%  6.43%
Schedule of Cash Flow Hedge Activity Recognized in Accumulated Other Comprehensive Loss, Net

The following table summarizes the deferred gain (loss) activity related to cash flow hedges recognized in accumulated other comprehensive loss, net, during the three and nine months ended September 30, 2013 and 2012 (in millions):

           Three Months Ended Nine Months Ended
           September 30, September 30,
           2013 2012 2013 2012
Deferred gains (losses) recognized:           
 Cross-currency swaps$ 249 $ 140 $ 140 $ 80
 Other cash flow hedges  —   (1)   —   (1)
 Total deferred gains recognized  249   139   140   79
Deferred (gains) losses reclassified to income:           
 Cross-currency swaps(a)  (124)   (63)   9   (64)
Total net deferred gains recognized  125   76   149   15
Income tax provision  (48)   (30)   (58)   (6)
Total net deferred gains recognized, net of tax$ 77 $ 46 $ 91 $ 9

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  • Deferred gains (losses) on cross-currency swaps were reclassified from accumulated other comprehensive loss, net, to other income, net, which offsets the re-measurement gains (losses) recognized in other income, net, on the British pound sterling denominated debt.