Derivative Financial Instruments

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

Derivatives Designated As Hedges

Net Investment Hedges

The total notional amount of foreign currency denominated debt and cross-currency swaps designated as net investment hedges are as follows:

	As of September 30, 2021	As of December 31, 2020
	(In € millions)
Total	1,837	1,358

Cash Flow Hedges

The total notional amount of the forward-starting interest rate swap designated as a cash flow hedge is as follows:

	As of September 30, 2021	As of December 31, 2020
	(In $ millions)
Total	—	400

Cash flows related to the settlement of forward-starting interest rate swaps are reported as financing activities. The Company settled the forward-starting interest rate swap on August 2, 2021, resulting in a payment to the counterparty of $72 million, which payment was included as part of financing activities in the unaudited interim consolidated statements of cash flows.

Derivatives Not Designated As Hedges

Foreign Currency Forwards and Swaps

Gross notional values of the foreign currency forwards and swaps not designated as hedges are as follows:

	As of September 30, 2021	As of December 31, 2020
	(In $ millions)
Total	634	546

Information regarding changes in the fair value of the Company's derivative and non-derivative instruments is as follows:

	Gain (Loss) Recognized in Other Comprehensive Income (Loss)		Gain (Loss) Recognized in Earnings (Loss)
	Three Months Ended September 30,				Statement of Operations Classification
	2021	2020	2021	2020
	(In $ millions)
Designated as Cash Flow Hedges
Commodity swaps	10	1	(1)	(5)	Cost of sales
Interest rate swaps	(7)	3	(1)	—	Interest expense
Total	3	4	(2)	(5)
Designated as Net Investment Hedges
Foreign currency denominated debt (Note 8)	37	(54)	—	—	N/A
Cross-currency swaps	10	(25)	—	—	N/A
Total	47	(79)	—	—
Not Designated as Hedges
Foreign currency forwards and swaps	—	—	(2)	(11)	Foreign exchange gain (loss), net; Other income (expense), net
Total	—	—	(2)	(11)

	Gain (Loss) Recognized in Other Comprehensive Income (Loss)		Gain (Loss) Recognized in Earnings (Loss)
	Nine Months Ended September 30,				Statement of Operations Classification
	2021	2020	2021	2020
	(In $ millions)
Designated as Cash Flow Hedges
Commodity swaps	33	4	(1)	(5)	Cost of sales
Interest rate swaps	10	(50)	(1)	—	Interest expense
Total	43	(46)	(2)	(5)
Designated as Net Investment Hedges
Foreign currency denominated debt (Note 8)	72	(39)	—	—	N/A
Cross-currency swaps	21	(3)	—	—	N/A
Total	93	(42)	—	—
Not Designated as Hedges
Foreign currency forwards and swaps	—	—	(6)	7	Foreign exchange gain (loss), net; Other income (expense), net
Total	—	—	(6)	7

See Note 15 for additional information regarding the fair value of the Company's derivative instruments.

Certain of the Company's commodity swaps, interest rate swaps, cross-currency swaps and foreign currency forwards and swaps permit the Company to net settle all contracts with the counterparty through a single payment in an agreed upon currency in the event of default or early termination of the contract, similar to a master netting arrangement.

Information regarding the gross amounts of the Company's derivative instruments and the amounts offset in the unaudited consolidated balance sheets is as follows:

	As of September 30, 2021	As of December 31, 2020
	(In $ millions)
Derivative Assets
Gross amount recognized	58	26
Gross amount offset in the consolidated balance sheets	—	2
Net amount presented in the consolidated balance sheets	58	24
Gross amount not offset in the consolidated balance sheets	9	11
Net amount	49	13

	As of September 30, 2021	As of December 31, 2020
	(In $ millions)
Derivative Liabilities
Gross amount recognized	18	123
Gross amount offset in the consolidated balance sheets	—	2
Net amount presented in the consolidated balance sheets	18	121
Gross amount not offset in the consolidated balance sheets	9	11
Net amount	9	110