Derivative Financial Instruments

9 Months Ended

Sep. 30, 2022

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, 2022	As of December 31, 2021
	(In € millions)
Total	6,017	1,653

Concurrently with the offering of the Acquisition USD Notes (Note 7), the Company entered into cross-currency swaps to effectively convert $2.0 billion and $500 million of the Acquisition USD Notes into a euro-denominated borrowing at prevailing euro interest rates, maturing on July 15, 2027 and July 15, 2032, respectively. The swaps and €1.5 billion of the Acquisition Euro Notes qualify and have been designated as net investment hedges of the Company's foreign currency exchange rate exposure on the net investments of certain of its euro-denominated subsidiaries.

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, 2022	As of December 31, 2021
	(In $ millions)
Total	686	663

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
	2022	2021	2022	2021
	(In $ millions)
Designated as Cash Flow Hedges
Commodity swaps	(9)	10	11	(1)	Cost of sales
Interest rate swaps	—	(7)	(1)	(1)	Interest expense
Foreign currency forwards	2	—	—	—	Cost of sales
Total	(7)	3	10	(2)
Designated as Net Investment Hedges
Foreign currency denominated debt (Note 7)	148	37	—	—	N/A
Cross-currency swaps	90	10	—	—	N/A
Total	238	47	—	—
Not Designated as Hedges
Foreign currency forwards and swaps	—	—	(8)	(2)	Foreign exchange gain (loss), net; Other income (expense), net
Total	—	—	(8)	(2)

	Gain (Loss) Recognized in Other Comprehensive Income (Loss)		Gain (Loss) Recognized in Earnings (Loss)
	Nine Months Ended September 30,				Statement of Operations Classification
	2022	2021	2022	2021
	(In $ millions)
Designated as Cash Flow Hedges
Commodity swaps	50	33	22	(1)	Cost of sales
Interest rate swaps	—	10	(5)	(1)	Interest expense
Foreign currency forwards	2	—	—	—	Cost of sales
Total	52	43	17	(2)
Designated as Net Investment Hedges
Foreign currency denominated debt (Note 7)	269	72	—	—	N/A
Cross-currency swaps	117	21	—	—	N/A
Total	386	93	—	—
Not Designated as Hedges
Foreign currency forwards and swaps	—	—	(12)	(6)	Foreign exchange gain (loss), net; Other income (expense), net
Total	—	—	(12)	(6)

See Note 13 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, 2022	As of December 31, 2021
	(In $ millions)
Derivative Assets
Gross amount recognized	227	40
Gross amount offset in the consolidated balance sheets	—	—
Net amount presented in the consolidated balance sheets	227	40
Gross amount not offset in the consolidated balance sheets	2	2
Net amount	225	38

	As of September 30, 2022	As of December 31, 2021
	(In $ millions)
Derivative Liabilities
Gross amount recognized	36	5
Gross amount offset in the consolidated balance sheets	—	—
Net amount presented in the consolidated balance sheets	36	5
Gross amount not offset in the consolidated balance sheets	2	2
Net amount	34	3