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Derivatives and Hedging (Tables)
 12 Months Ended
Dec. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Notional and fair values of derivative instruments
The notional and fair values of derivative instruments are as follows (in millions):
 
 
 
 
 
Derivative Assets (1)
 
Derivative Liabilities (2)
 
Notional Amount
 
Fair Value
 
Fair Value
As of December 31
2013
 
2012
 
2013
 
2012
 
2013
 
2012
Derivatives accounted for as hedges:
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
$
171

 
$
336

 
$
9

 
$
17

 
$
—

 
$
—

Foreign exchange contracts
1,191

 
1,208

 
71

 
191

 
93

 
250

Total
1,362

 
1,544

 
80

 
208

 
93

 
250

Derivatives not accounted for as hedges:
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
215

 
305

 
—

 
2

 
—

 
1

Total
$
1,577

 
$
1,849

 
$
80

 
$
210

 
$
93

 
$
251

(1)
Included within Other current assets ($46 million in 2013 and $167 million in 2012) or Other non-current assets ($34 million in 2013 and $43 million in 2012)
(2)
Included within Other liabilities $51 million in 2013 and $171 million in 2012) or Other non-current liabilities ($42 million in 2013 and $80 million in 2012)

Offsetting of financial assets and derivatives assets are as follows (in millions):
 
Gross Amounts of Recognized Assets
 
Gross Amounts Offset in the Statement of Financial Position
 
Net Amounts of Assets Presented in the Statement of Financial Position (1)
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
Derivatives accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Interest rate contracts
$
9

 
$
17

 
$
—

 
$
—

 
$
9

 
$
17

Foreign exchange contracts
71

 
191

 
(30
)
 
(160
)
 
41

 
31

Total
80

 
208

 
(30
)
 
(160
)
 
50

 
48

Derivatives not accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Foreign exchange contracts
—

 
2

 
—

 
—

 
—

 
2

   Total
$
80

 
$
210

 
$
(30
)
 
$
(160
)
 
$
50

 
$
50

______________________________________________
(1) Included within Other current assets ($18 million in both 2013 and 2012) or Other non-current assets ($32 million in both 2013 and 2012)

Offsetting of financial liabilities and derivative liabilities are as follows (in millions):
 
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset in the Statement of Financial Position
 
Net Amounts of Liabilities Presented in the Statement of Financial Position (2)
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
Derivatives accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Interest rate contracts
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Foreign exchange contracts
93

 
250

 
(30
)
 
(160
)
 
63

 
90

Total
93

 
250

 
(30
)
 
(160
)
 
63

 
90

Derivatives not accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Foreign exchange contracts
—

 
1

 
—

 
—

 
—

 
1

   Total
$
93

 
$
251

 
$
(30
)
 
$
(160
)
 
$
63

 
$
91

______________________________________________
(2) Included within Other current liabilities ($23 million in both 2013 and 2012) or Other non-current liabilities ($40 million in 2013 and $68 million in 2012)
Derivative gains (losses)
The amounts of derivative gains (losses) recognized in the Consolidated Financial Statements are as follows (in millions):
 
December 31,
Gain (Loss) recognized in Accumulated Other Comprehensive Loss:
2013
 
2012
 
2011
Cash flow hedges:
 
 
 
 
 
Interest rate contracts (1)
$
2

 
$
—

 
$
(1
)
Foreign exchange contracts (2)
(4
)
 
(21
)
 
(54
)
Total
(2
)
 
(21
)
 
(55
)
Foreign net investment hedges:
 
 
 
 
 
Foreign exchange contracts
$
—

 
$
4

 
$
(2
)
(1)
Location of future reclassification from Accumulated Other Comprehensive Loss will be included within Interest Expense
(2)
Location of future reclassification from Accumulated Other Comprehensive Loss will be included within Compensation and benefits ($17 million loss for 2013, $8 million loss for 2012 and $6 million loss for 2011), Other general expenses (none for 2013, $19 million loss for 2012 and $34 million loss for 2011), and Other income ($13 million gain for 2013, $6 million gain for 2012 and $14 million loss for 2011)
 
December 31,
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion):
2013
 
2012
 
2011
Cash flow hedges:
 
 
 
 
 
Interest rate contracts (1)
$
(1
)
 
$
(1
)
 
$
—

Foreign exchange contracts (2)
(10
)
 
(34
)
 
(36
)
Total
(11
)
 
(35
)
 
(36
)
Foreign net investment hedges:
 
 
 
 
 
Foreign exchange contracts
$
—

 
$
—

 
$
—


(1)
Included within Interest Expense
(2)
Included within Compensation and benefits ($12 million loss for 2013, $9 million loss for 2012 and $3 million loss for 2011), Interest Expense ($3 million loss for 2013 and none for both 2012 and 2011), Other general expenses ($9 million loss for 2013, $16 million loss for 2012 and $25 million loss for 2011), and Other income ($14 million gain for 2013, $9 million loss for 2012 and $8 million loss for 2011)
The amount of gain (loss) recognized in the Consolidated Financial Statements is as follows (in millions):
 
Twelve months ended December 31,
 
Amount of Gain (Loss)
Recognized in Income on
Derivative(2)
 
Amount of Gain (Loss)
Recognized in Income on
Related Hedged Item
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Fair value hedges:
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts(1)
$
(8
)
 
$
1

 
$
2

 
$
8

 
$
(1
)
 
$
(2
)
(1)
Relates to fixed rate debt
(2)
Included in interest exp