Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2013

Fair Values of Outstanding Derivative Instruments

The fair values of outstanding derivative instruments are summarized as follows:

	(Stated in millions)
	Fair Value of Derivatives				Consolidated Balance Sheet Classification
Derivative assets	2013		2012
Derivative designated as hedges:
Foreign exchange contracts	$	98	$	26	Other current assets
Foreign exchange contracts		24		22	Other Assets
Interest rate swaps		27		—	Other Assets
Interest rate swaps		—		2	Other current assets
		149		50
Derivative not designated as hedges:
Foreign exchange contracts		10		10	Other current assets
Foreign exchange contracts		4		6	Other Assets
		14		16
	$	163	$	66
Derivative Liabilities
Derivative designated as hedges:
Foreign exchange contracts	$	14	$	80	Accounts payable and accrued liabilities
Foreign exchange contracts		1		19	Other Liabilities
		15		99
Derivative not designated as hedges:
Foreign exchange contracts		2		3	Accounts payable and accrued liabilities
	$	17	$	102

Effect of Derivative Instruments Designated as Fair Value Hedges and Not Designated as Hedges on Consolidated Statement of Income

The effect of derivative instruments designated as fair value hedges and not designated as hedges on the Consolidated Statement of Income was as follows:

	(Stated in millions)
	Gain (Loss) Recognized in Income								Consolidated Statement of
	2013			2012		2011			Income Classification
Derivatives designated as fair value hedges:
Interest rate swaps	$	15		$	1	$	9		Interest expense
Derivatives not designated as hedges:
Foreign exchange contracts	$	(2	)	$	5	$	(17	)	Cost of revenue
Commodity contracts		—			1		(5	)	Cost of revenue
	$	(2	)	$	6	$	(22	)

Effect of Derivative Instruments in Cash Flow Hedging Relationships on Income and Accumulated Other Comprehensive Loss (AOCL)

The effect of derivative instruments in cash flow hedging relationships on income and Accumulated other comprehensive loss (AOCL) was as follows:

	(Stated in millions)
	Gain (Loss) Reclassified from AOCL into Income									Consolidated Statement of
	2013			2012			2011			Income Classification
Foreign exchange contracts	$	58		$	49		$	(25	)	Cost of revenue
Foreign exchange contracts		(8	)		(13	)		17		Research & engineering
	$	50		$	36		$	(8	)

	(Stated in millions)
	Gain (Loss) Recognized in AOCL
	2013		2012		2011
Foreign exchange contracts	$	49	$	92	$	(79	)