Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of fair value of outstanding derivative instruments

The fair values of our outstanding derivative instruments were as follows (in millions):

	Balance Sheet Location	September 30, 2020		December 31, 2019
Derivative Assets:
Foreign exchange contracts designated as cash flow hedges	Other Current Assets	$	29	$	36
Foreign exchange contracts designated as net investment hedges	Other Current Assets	1		—
Foreign exchange contracts not designated as hedging instruments	Other Current Assets	9		13
Warrant	Other Assets	777		281
Foreign exchange contracts designated as cash flow hedges	Other Assets	16		15
Interest rate contracts designated as cash flow hedges	Other Assets	4		—
Total derivative assets		$	836	$	345
Derivative Liabilities:
Foreign exchange contracts designated as cash flow hedges	Other Current Liabilities	$	12	$	2
Foreign exchange contracts designated as net investment hedges	Other Current Liabilities	2		2
Foreign exchange contracts not designated as hedging instruments	Other Current Liabilities	11		16
Interest rate contracts designated as cash flow hedges	Other Current Liabilities	1		—
Interest rate contracts designated as cash flow hedges	Other Liabilities	3		—
Total derivative liabilities		$	29	$	20
Total fair value of derivative instruments		$	807	$	325

Impact of derivative contracts on accumulated other comprehensive income

The following tables present the activity of derivative instruments designated as cash flow hedges as of September 30, 2020 and December 31, 2019, and the impact of these derivative contracts on AOCI for the nine months ended September 30, 2020 and 2019 (in millions): 

	December 31, 2019		Amount of Gain (Loss) Recognized in Other Comprehensive  Income		Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings		September 30, 2020
Foreign exchange contracts designated as cash flow hedges	$	(9)	$	(17)	$	23	$	(49)

The impact of interest rate contracts designated as cash flow hedges on AOCI for the nine months ended September 30, 2020 was immaterial.

	December 31, 2018		Amount of Gain (Loss) Recognized in Other Comprehensive  Income		Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings		September 30, 2019
Foreign exchange contracts designated as cash flow hedges	$	68	$	58	$	53	$	73

Recognized gains or losses related to derivative instruments

The following table provides a summary of the total gain (loss) recognized in the condensed consolidated statement of income from our foreign exchange derivative contracts by location (in millions): 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Foreign exchange contracts designated as cash flow hedges recognized in net revenues	$	6	$	19	$	23	$	52
Foreign exchange contracts designated as cash flow hedges recognized in cost of net revenues	—		—		—		1
Foreign exchange contracts not designated as hedging instruments recognized in interest and other, net	(17)		28		(10)		(3)
Total gain (loss) recognized from foreign exchange derivative contracts in the condensed consolidated statement of income	$	(11)	$	47	$	13	$	50

The following table provides a summary of the total gain (loss) recognized in the condensed consolidated statement of income from our interest rate derivative contracts by location (in millions): 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Gain (loss) from interest rate contracts designated as fair value hedges recognized in interest and other, net	$	—	$	(5)	$	—	$	34
Gain (loss) from hedged items attributable to hedged risk recognized in interest and other, net	—		5		—		(34)
Gain (loss) from interest rate contracts designated as cash flow hedges recognized in interest and other, net	—		—		—		—
Total gain (loss) recognized from interest rate derivative contracts in the condensed consolidated statement of income	$	—	$	—	$	—	$	—

The following table provides a summary of the total gain (loss) recognized in the condensed consolidated statement of income due to changes in the fair value of the warrant (in millions): 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Gain (loss) attributable to changes in the fair value of warrant recognized in interest and other, net	$	191	$	(49)	$	496	$	56

Notional amounts of outstanding derivatives

The following table provides the notional amounts of our outstanding derivatives (in millions):

	September 30, 2020		December 31, 2019
Foreign exchange contracts designated as cash flow hedges	$	2,039	$	1,983
Foreign exchange contracts designated as net investment hedges	204		200
Foreign exchange contracts not designated as hedging instruments	2,273		2,276
Interest rate contracts designated as cash flow hedges	1,100		—
Total	$	5,616	$	4,459