Derivative Financial Instruments

6 Months Ended

Jun. 30, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Note 11. Derivative Financial Instruments

We enter into forward currency contracts to manage foreign exchange risk on intercompany loans that are not deemed permanently invested. These forward contracts are not designated as hedges, and their change in fair value is recorded in our consolidated statements of income in the interest expense line item during each reporting period. These forward contracts provide an economic hedge, as they largely offset foreign currency exposures on intercompany loans.

The counterparties to our derivative financial instruments are major financial institutions. We evaluate the bond ratings of the financial institutions and believe that credit risk is at an acceptable level.

The following tables summarize the fair value of our derivative instruments and the effect on the Consolidated Statements of Income during the quarter.

Fair Value of Derivative Instruments

(in millions)

	June 30, 2013			December 31, 2012
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives not designated as hedging instruments
Asset Derivatives
Forward contracts	Prepaid expenses and other	$	2	Prepaid expenses and other	$	2
Total assets		$	2		$	2
Liability Derivatives
Forward contracts	Accrued expenses	$	2	Accrued expenses	$	—
Total liabilities		$	2		$	—

Derivatives Not Designated as Hedging         Instruments	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on  Derivative
		Three Months Ended June 30,
		2013		2012
Foreign forward exchange contracts	Interest expense, net	$	5	$	2
Total gain included in income		$	5	$	2

Derivatives Not Designated as Hedging         Instruments	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on  Derivative
		Six Months Ended June 30,
		2013		2012
Foreign forward exchange contracts	Interest expense, net	$	11	$	1
Total gain included in income		$	11	$	1