Derivatives and Hedging Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Net Investment Hedges

The effect of net investment hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023 was as follows (in millions):

Amount of gain or (loss) recognized in accumulated other comprehensive income:
		Three Months Ended March 31,
		2024		2023
Foreign currency debt		$	29	$	(24)
Foreign currency forward contracts (included component) (1)		27		(1)
Foreign currency forward contracts (excluded component) (2)		—		1
Cross-currency interest rate swaps (included component) (1)		76		(40)
Cross-currency interest rate swaps (excluded component) (3)		(2)		24
Total		$	130	$	(40)
Amount of gain or (loss) recognized in earnings:
		Three Months Ended March 31,
	Location of gain (loss)	2024		2023
Foreign currency forward contracts (excluded component) (2)	Interest expense	$	2	$	—
Cross-currency interest rate swaps (excluded component) (3)	Interest expense	8		12
Total		$	10	$	12

(1)Included component represents foreign exchange spot rates.

(2)Excluded component represents foreign currency forward points.

(3)Excluded component represents cross-currency basis spread and interest rates.

Schedule of Cash Flow Hedges

The effect of cash flow hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023 was as follows (in millions):

Amount of gain or (loss) recognized in accumulated other comprehensive income:
		Three Months Ended March 31,
		2024		2023
Foreign currency forward and option contracts (included component) (1)		$	27	$	(13)
Cross-currency interest rate swaps		(2)		(2)
Interest rate locks		1		(4)
Total		$	26	$	(19)
Amount of gain or (loss) reclassified from accumulated other comprehensive income to income:
		Three Months Ended March 31,
	Location of gain (loss)	2024		2023
Foreign currency forward contracts	Revenues	$	(3)	$	12
Foreign currency forward contracts	Costs and operating expenses	2		(3)
Total		$	(1)	$	9

(1)Included component represents foreign exchange spot rates.

Schedule of Derivatives not Designated as Hedging Instruments in the Company's Condensed Consolidated Statements of Operations

The following table presents the effect of derivatives not designated as hedging instruments in our condensed consolidated statements of operations (in millions):

Amount of gain or (loss) recognized in earnings:
		Three Months Ended March 31,
	Location of gain (loss)	2024		2023
Foreign currency forward contracts	Other income (expense)	76		11
Total		$	76	$	11

Schedule of Derivative Instruments Recognized in the Company's Condensed Consolidated Balance Sheets

The notional amounts of our outstanding derivative instruments as of March 31, 2024 and December 31, 2023 were as follows (in millions):

	March 31, 2024		December 31, 2023
Designated as hedging instruments:
Net investment hedges
Foreign currency forward contracts	$	1,004	$	887
Cross-currency interest rate swaps	3,121		3,121
Cash flow hedges
Foreign currency forward and option contracts	1,187		1,154
Cross-currency interest rate swaps	280		280
Total designated as hedging	5,592		5,442
Not designated as hedging instruments:
Foreign currency forward contracts	2,736		3,053
Cross-currency interest rate swaps	661		1,061
Total not designated as hedging	3,397		4,114
Total Derivatives	$	8,989	$	9,556

The following table presents the fair value of derivative instruments recognized in our condensed consolidated balance sheets, excluding accrued interest, as of March 31, 2024 and December 31, 2023 (in millions):

	March 31, 2024				December 31, 2023
	Assets (1)		Liabilities (2)		Assets (1)		Liabilities (2)
Designated as hedging instruments:
Net investment hedges
Foreign currency forward contracts	$	19	$	2	$	3	$	17
Cross-currency interest rate swaps	209		—		132		—
Cash flow hedges
Foreign currency forward and option contracts	15		2		2		14
Cross-currency interest rate swaps	33		—		36		—
Total designated as hedging	276		4		173		31
Not designated as hedging instruments:
Foreign currency forward contracts	23		3		4		70
Cross-currency interest rate swaps	79		13		80		—
Total not designated as hedging	102		16		84		70
Total Derivatives	$	378	$	20	$	257	$	101

(1)As presented in our condensed consolidated balance sheets within other current assets and other assets.

(2)As presented in our condensed consolidated balance sheets within other current liabilities and other liabilities.

Schedule of Offsetting Derivative Assets and Liabilities

The following table presents information related to these offsetting arrangements, inclusive of accrued interest, as of March 31, 2024 and December 31, 2023 (in millions):

	Gross Amounts Offset in Condensed Consolidated Balance Sheets
	Gross Amounts		Gross Amounts Offset in the Balance Sheet		Net Amounts		Gross Amounts not Offset in the Balance Sheet		Net
March 31, 2024
Derivative assets	$	394	$	—	$	394	$	(29)	$	365
Derivative liabilities	31		—		31		(29)		2
December 31, 2023
Derivative assets	$	282	$	—	$	282	$	(56)	$	226
Derivative liabilities	112		—		112		(56)		56

Schedule of Offsetting Derivative Assets and Liabilities

The following table presents information related to these offsetting arrangements, inclusive of accrued interest, as of March 31, 2024 and December 31, 2023 (in millions):

	Gross Amounts Offset in Condensed Consolidated Balance Sheets
	Gross Amounts		Gross Amounts Offset in the Balance Sheet		Net Amounts		Gross Amounts not Offset in the Balance Sheet		Net
March 31, 2024
Derivative assets	$	394	$	—	$	394	$	(29)	$	365
Derivative liabilities	31		—		31		(29)		2
December 31, 2023
Derivative assets	$	282	$	—	$	282	$	(56)	$	226
Derivative liabilities	112		—		112		(56)		56