Comprehensive (Loss) Income

9 Months Ended

Sep. 30, 2020

Comprehensive (Loss) Income [Abstract]

Note 9. Comprehensive (Loss) Income

Comprehensive (loss) income, which primarily includes net income, unrealized gain (loss) on derivative instruments and the effect of foreign currency translation, is included in the Condensed Consolidated Statements of Operations and Comprehensive Income.

During the nine months ended September 30, 2019, we terminated $479 million of our then-existing $650 million interest rate swap, receiving $12 million from the counterparty. We terminated the remaining $171 million of our then-existing $650 million interest rate swap later in 2019, receiving $1 million from the counterparty. The fair value of the terminated agreement of $12 million as of September 30, 2019, and $12 million as of December 31, 2019, is recorded within accumulated other comprehensive (loss) income on the Condensed Consolidated Statements of Financial Position and will be amortized into interest expense over the original term of the agreement. The remaining unamortized balance at September 30, 2020 is $7 million.

The following tables summarize the activity in accumulated other comprehensive (loss) income, net of the related tax effects.




	Unrealized
	Gains		Foreign
	(Losses) on		Currency
(In millions)	Derivatives		Translation		Total
Balance as of December 31, 2019	$	13	$	(5)	$	9
Other comprehensive income before reclassifications:
Pre-tax amount		(66)		(7)		(73)
Tax provision		12		—		12
After-tax amount		(54)		(7)		(61)
Amounts reclassified within accumulated other comprehensive (loss) income⁽¹⁾		17		(17)		—
Amounts reclassified from accumulated other comprehensive (loss) income⁽²⁾		3		—		3
Net current period other comprehensive (loss) income		(34)		(24)		(58)
Balance as of September 30, 2020	$	(21)	$	(29)	$	(49)

Balance as of December 31, 2018	$	20	$	(15)	$	5
Other comprehensive income before reclassifications:
Pre-tax amount		(14)		(2)		(16)
Tax benefit		7		—		7
After-tax amount		(7)		(2)		(9)
Amounts reclassified from accumulated other comprehensive (loss) income⁽²⁾		(3)		—		(3)
Net current period other comprehensive (loss) income		(10)		(2)		(13)
Balance as of September 30, 2019	$	9	$	(18)	$	(8)

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(1)Represents unrealized gains (losses) on our cross currency swap and net investment hedge related to foreign currency exchange rate fluctuations.

(2)Amounts are net of tax. Reclassifications out of accumulated other comprehensive (loss) income included the following components for the periods indicated.


	Amounts Reclassified from Accumulated
	Other Comprehensive (Loss) Income
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2020		2019		2020		2019
Gains (losses) on derivatives:
Fuel swap contracts	$	(1)	$	—	$	(3)	$	—
Interest rate swap contracts		(1)		1		(2)		4
Net gains (losses) on derivatives		(2)		1		(4)		4
Impact of income taxes		1		—		2		—
Total reclassifications for the period	$	(2)	$	1	$	(3)	$	3