Derivatives and Hedging Instruments (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

The following table presents the composition of derivative instruments recognized in our condensed consolidated balance sheets, excluding accrued interest, as of September 30, 2024 and December 31, 2023 (in millions):

	September 30, 2024						December 31, 2023
			Fair Value						Fair Value
	Notional Amount (1)		Assets (2)		Liabilities (3)		Notional Amount (1)		Assets (2)		Liabilities (3)
Designated as hedging instruments:
Net investment hedges
Foreign currency forward contracts	$	886	$	2	$	12	$	887	$	3	$	17
Cross-currency interest rate swaps	2,171		73		1		3,121		132		—
Cash flow hedges
Foreign currency forward contracts	1,397		1		31		1,154		2		14
Cross-currency interest rate swaps	1,030		52		3		280		36		—
Total designated as hedging	5,484		128		47		5,442		173		31
Not designated as hedging instruments:
Foreign currency forward contracts	5,319		31		70		3,053		4		70
Cross-currency interest rate swaps	2,211		144		7		1,061		80		—
Total not designated as hedging	7,530		175		77		4,114		84		70
Total Derivatives	$	13,014	$	303	$	124	$	9,556	$	257	$	101

(1)Excludes embedded derivatives.

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

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

Schedule of Net Investment Hedges

The pre-tax gains (losses) from hedging instruments recognized in accumulated other comprehensive income for the three and nine months ended September 30, 2024 and 2023 were as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net investment hedges:
Foreign currency debt	$	(39)	$	51	$	(5)	$	12
Foreign currency forward contracts (included component)	(36)		10		(1)		9
Foreign currency forward contracts (excluded component)	3		—		3		—
Cross-currency interest rate swaps (included component)	(82)		100		2		79
Cross-currency interest rate swaps (excluded component)	16		(12)		17		(15)
Total	$	(138)	$	149	$	16	$	85
Cash flow hedges:
Foreign currency forward contracts	$	(46)	$	36	$	(17)	$	18
Cross-currency interest rate swaps (excluded component)	9		(1)		17		(2)
Interest rate locks	—		—		1		(4)
Total	$	(37)	$	35	$	1	$	12

Schedule of Cash Flow Hedges

The gains (losses) from derivative instruments recognized in earnings, and location of such gains (losses) in the condensed consolidated statements of operations for the three and nine months ended September 30, 2024 and 2023 were as follows (in millions):

		Three Months Ended September 30,				Nine Months Ended September 30,
	Location of gain (loss)	2024		2023		2024		2023
Net investment hedges:
Foreign currency forward contracts (excluded component)	Interest expense	$	3	$	—	$	8	$	1
Cross-currency interest rate swaps (excluded component)	Interest expense	6		11		21		35
Total		$	9	$	11	$	29	$	36
Cash flow hedges:
Foreign currency forward contracts	Revenues	$	3	$	(12)	$	8	$	(6)
Foreign currency forward contracts	Costs and operating expenses	(2)		8		(4)		12
Cross-currency interest rate swaps (excluded component)	Interest expense	3		—		4		—
Cross-currency interest rate swaps (included component)	Other income (expense)	(10)		(13)		(3)		3
Total		$	(6)	$	(17)	$	5	$	9
Non designated hedges:
Foreign currency forward contracts	Other income (expense)	$	(70)	$	78	$	(4)	$	82
Cross-currency interest rate swaps	Other income (expense)	(18)		2		(8)		2
Total		$	(88)	$	80	$	(12)	$	84

Schedule of Offsetting Derivative Assets and Liabilities

The following table presents information related to these offsetting arrangements, inclusive of accrued interest, as of September 30, 2024 and December 31, 2023 (in millions):

	Gross Amounts		Gross Amounts Offset in Condensed Consolidated Balance Sheet		Net Amounts		Gross Amounts not Offset in Condensed Consolidated Balance Sheet		Net
September 30, 2024
Derivative assets	$	333	$	—	$	333	$	(95)	$	238
Derivative liabilities	145		—		145		(95)		50
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 September 30, 2024 and December 31, 2023 (in millions):

	Gross Amounts		Gross Amounts Offset in Condensed Consolidated Balance Sheet		Net Amounts		Gross Amounts not Offset in Condensed Consolidated Balance Sheet		Net
September 30, 2024
Derivative assets	$	333	$	—	$	333	$	(95)	$	238
Derivative liabilities	145		—		145		(95)		50
December 31, 2023
Derivative assets	$	282	$	—	$	282	$	(56)	$	226
Derivative liabilities	112		—		112		(56)		56