XML 44 R32.htm IDEA: XBRL DOCUMENT v3.7.0.1
Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of notional amounts of outstanding derivative positions
The Company held the following derivative instruments as of June 30, 2017 and December 31, 2016:
 
 
 
 
 
As of June 30, 2017
 
As of December 31, 2016
(in millions)
 
Notional Currency
 
Notional Value
 
Assets(a)
 
Liabilities
 
Notional Value
 
Assets(a)
 
Liabilities
Derivatives designated as hedges of net investments in foreign operations:
 
 
 
 
 
 

 
 

 
 

 
 

 
 

Foreign exchange contracts
 
AUD
 
100

 
$
29

 
$
—

 
211

 
$
57

 
$
—

Foreign exchange contracts(b)
 
EUR
 
915

 
—

 
(22
)
 
—

 
—

 
—

Foreign exchange contracts
 
GBP
 
150

 
1

 
—

 
300

 
78

 
—

Foreign exchange contracts
 
CAD
 
95

 
1

 
—

 
130

 
9

 
—

 
 
 
 
 
 
31

 
(22
)
 
 
 
144

 
—

Derivatives designated as cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate collar contracts
 
USD
 
4,300

 
3

 
—

 
3,000

 
3

 
—

 
 
 
 
 
 
$
34

 
$
(22
)
 
 
 
$
147

 
$
—

(a)
Our derivatives are subject to master netting agreements to the extent that the swaps are with the same counterparty. The terms of those agreements require that the Company net settle the outstanding positions at the option of the counterparty upon certain events of default.
(b)
The Company entered into new foreign exchange contracts with a notional value of EUR 915 million on June 14, 2017.
Schedule of the effect of derivative instruments on the Consolidated Statements of Operations
Derivative gains and (losses) were as follows for the three and six months ended June 30, 2017 and 2016:
 
 
Three months ended June 30,
 
Six months ended June 30,
 
 
2017
 
2016
 
2017
 
2016
(in millions, pretax)
 
Interest
Rate
Contracts
 
Foreign
Exchange
Contracts
 
Interest
Rate
Contracts
 
Foreign
Exchange
Contracts
 
Interest
Rate
Contracts
 
Foreign
Exchange
Contracts
 
Interest
Rate
Contracts
 
Foreign
Exchange
Contracts
Derivatives designated as hedging instruments:
 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
Gain (loss) recognized in "Foreign currency translation adjustment" in the unaudited consolidated statements of comprehensive income (loss) (effective portion)
 
$
—

 
$
(29
)
 
$
—

 
$
30

 
$
—

 
$
(43
)
 
$
—

 
$
22

Loss recognized in "Derivative instruments" in the unaudited consolidated statements of comprehensive income (loss) (effective portion)
 
(2
)
 
—

 
—

 
—

 
(1
)
 
—

 
—

 
—

Derivatives not designated as hedging instruments:
 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
Loss recognized in "Other (expense) income" in the unaudited consolidated statements of operations
 
—

 
—

 
(1
)
 
—

 
—

 
—

 
(5
)
 
—
Summary of activity in other comprehensive income related to derivative instruments classified as cash flow hedges and as a net investment hedge
The following table summarizes activity in other comprehensive income (loss) related to derivative instruments classified as cash flow hedges and net investment hedges held by the Company for the three and six months ended June 30, 2017 and 2016:
 
 
Three months ended June 30,
 
Six months ended June 30,
(in millions, after tax)
 
2017
 
2016
 
2017
 
2016
Accumulated gain included in other comprehensive income (loss) at beginning of period
 
$
115

 
$
81

 
$
124

 
$
86

(Decrease) increase in fair value of derivatives that qualify for hedge accounting, net of tax(a) (b)
 
(19
)
 
19

 
(28
)
 
14

Accumulated gain included in other comprehensive income (loss) at end of period
 
$
96

 
$
100

 
$
96

 
$
100

(a) Losses are included in "Derivative instruments" and “Foreign currency translation adjustment” in the unaudited consolidated statements of comprehensive income (loss). 
(b)
Net of tax of $12 million and $11 million for the three months ended June 30, 2017 and 2016, respectively, and $16 million and $8 million for the six months ended June 30, 2017 and 2016, respectively.