Derivative Financial Instruments

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

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
	2023	2022	2023	2022
	(In $ millions)
Designated as Cash Flow Hedges
Commodity swaps	5	(9)	1	11	Cost of sales
Interest rate swaps	—	—	(2)	(1)	Interest expense
Foreign currency forwards	—	2	4	—	Cost of sales
Total	5	(7)	3	10
Designated as Fair Value Hedges
Cross-currency swaps(1)	18	—	40	—	Foreign exchange gain (loss), net
Designated as Net Investment Hedges
Foreign currency denominated debt	61	148	—	—	N/A
Cross-currency swaps	77	90	—	—	N/A
Total	138	238	—	—
Not Designated as Hedges
Foreign currency forwards and swaps	—	—	(23)	(8)	Foreign exchange gain (loss), net; Other income (expense), net

______________________________

(1)In conjunction with the 2023 Offering (Note 7) in August 2023, the Company entered into a cross-currency swap to effectively convert $500 million of the issued notes into a Japanese yen-denominated borrowing at prevailing yen interest rates, maturing on July 15, 2029. The swap qualifies and has been designated as a fair value hedge of the Company's foreign currency exchange rate exposure on the long-term debt of its Japanese yen-denominated subsidiary.

Additionally, in conjunction with the 2023 Offering (Note 7) in August 2023, the Company entered into cross-currency swaps to effectively convert $1.0 billion of the issued notes into 5-year and 7-year euro-denominated borrowings at prevailing euro interest rates, maturing on November 15, 2028 and November 15, 2030, respectively. The swaps qualify and have been designated as fair value hedges of the Company's foreign currency exchange rate exposure on the long-term debt of its euro-denominated subsidiary.

	Gain (Loss) Recognized in Other Comprehensive Income (Loss)		Gain (Loss) Recognized in Earnings (Loss)
	Nine Months Ended September 30,				Statement of Operations Classification
	2023	2022	2023	2022
	(In $ millions)
Designated as Cash Flow Hedges
Commodity swaps	(2)	50	2	22	Cost of sales
Interest rate swaps	—	—	(6)	(5)	Interest expense
Foreign currency forwards	4	2	2	—	Cost of sales
Total	2	52	(2)	17
Designated as Fair Value Hedges
Cross-currency swaps	18	—	40	—	Foreign exchange gain (loss), net
Designated as Net Investment Hedges(1)
Foreign currency denominated debt	—	269	—	—	N/A
Cross-currency swaps	(16)	117	—	—	N/A
Total	(16)	386	—	—
Not Designated as Hedges
Foreign currency forwards and swaps	—	—	(22)	(12)	Foreign exchange gain (loss), net; Other income (expense), net

______________________________

(1)Concurrently with offering of the Acquisition USD Notes in July 2022 (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.

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, 2023	As of December 31, 2022
	(In $ millions)
Derivative Assets
Gross amount recognized	187	169
Gross amount offset in the consolidated balance sheets	—	—
Net amount presented in the consolidated balance sheets	187	169
Gross amount not offset in the consolidated balance sheets	44	16
Net amount	143	153

	As of September 30, 2023	As of December 31, 2022
	(In $ millions)
Derivative Liabilities
Gross amount recognized	226	189
Gross amount offset in the consolidated balance sheets	—	—
Net amount presented in the consolidated balance sheets	226	189
Gross amount not offset in the consolidated balance sheets	44	16
Net amount	182	173