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DERIVATIVES AND HEDGING ACTIVITIES
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES AND HEDGING ACTIVITIES DERIVATIVES AND HEDGING ACTIVITIES
In the normal course of the Group’s business operations, it is exposed to certain risks, including changes in interest rates and foreign currency risk. To manage these risks, the Group uses derivative instruments such as futures, forward contracts, swaps, options and other instruments with similar characteristics. All of the Group’s derivatives are used for non-trading activities.
Cash flow hedges of interest rate and foreign currency risk
Interest rate and foreign currency risk arising from a portion of the Group’s floating interest rate USD First Lien Term Loan B and foreign currency risk arising from the Group’s fixed rate USD Senior Secured Notes are managed using interest rate swaps and cross-currency interest rate swaps, which are designated as cash flow hedges with the objective of reducing the volatility of interest expense and foreign currency gains and losses in the case of the USD First Lien Term Loan B maturing in 2030 and foreign currency risk in case of the fixed rate USD Senior Secured Notes maturing in 2029.
Cross-currency interest rate swaps
The cross-currency interest rate swaps designated as a hedge of the interest rate and foreign currency risk arising from the USD First Lien Term Loan B effectively convert the variable rate USD First Lien Term Loan B into fixed GBP interest rate Term Loan and eliminates foreign currency risk arising from the remeasurement of the USD First Lien Term Loan B.
The cross-currency interest rate swaps designated as a hedge of the foreign currency risk arising from the USD Senior Secured Notes effectively convert the fixed rate USD Senior Secured Notes to fixed rate GBP Senior Secured Notes.
Foreign currency and interest rate risks are eliminated by exchanging contractual amounts at exchange rates and interest rates determined at contract inception.
Interest rate swaps
The interest rate swaps designated as a hedge of the interest risk arising from the USD First Lien Term Loan B effectively converts the variable rate term loan into fixed rate term loan.
Interest risk is eliminated by exchanging contractual amounts at interest rates determined at contract inception.
The following table summarizes the Group's outstanding derivative instruments designated as cash flow hedges:
As of December 31,
20242023
Hedged ItemNotional ($ in millions)Expiration dateNotional ($ in millions)Expiration date
Cross-currency interest rate swapsTerm Loan$689 June 30, 2025$1,603 September 30, 2024 to June 30, 2025
Cross-currency interest rate swapsUSD Senior Secured Notes$525 April 15, 2026$— 
Interest rate swapsTerm Loan$1,949 June 30, 2025 to September 30, 2026$1,094 September 30, 2024 to June 30, 2025
Changes in the fair value on the portion of the derivative included in the assessment of hedge effectiveness of cash-flow hedges are recorded in other comprehensive income (loss), until earnings are affected by the variability of cash flows. Amounts recorded in accumulated other comprehensive income (loss) were recognized in earnings within interest expense, net when the hedged interest payment was accrued. In addition, since the cross-currency interest rate swaps was a hedge of variability of the functional-currency-equivalent cash flows of the recognized term loan liability remeasured at spot exchange rates under ASC 830, “Foreign Currency Matters,” an amount that offset the gain or loss arising from the remeasurement of the hedged term loan liability, was reclassified each period from accumulated other comprehensive income (loss) to earnings in foreign exchange (loss) gain, net, which is a component of other expense, net.
The amount reclassified from accumulated other comprehensive (loss) into earnings was a net loss of $32 million, $93 million and a net gain of $72 million for the years ended December 31, 2024, 2023 and 2022 respectively.
The Group expects to reclassify a gain of $8 million from accumulated other comprehensive (loss) into earnings within the next 12 months.
Fair value hedge
Foreign currency risk arising from a portion of the Group's floating rate USD First Lien Term Loan B are managed using receive fixed rate, pay fixed rate or receive variable rate, pay variable rate cross-currency interest rate swaps. Foreign currency risk is eliminated by exchanging contractual amounts at exchange rates which are determined at contract inception.
The notional amount of cross-currency interest rate swaps accounted for as fair value hedges of foreign currency risk on the USD First Lien Term Loan B was $1,425 million as of December 31, 2024 (nil as of December 31, 2023).
The Group excludes the cross-currency basis spread in the swap from the hedge effectiveness assessment and recognizes the excluded component into earnings through the periodic interest settlements on the swap.
Changes in the fair value on the portion of the derivative included in the assessment of hedge effectiveness of fair value hedges resulting from the changes in the spot rate are recognized in earnings within foreign exchange (loss) gain, net, which is a component of other expense, net which offset the gain or loss arising from the remeasurement of the hedged term loan liability with the difference recorded in other comprehensive income (loss). The Group recorded a foreign currency gain of $86 million in earnings for the year ended December 31, 2024 which offset the foreign currency loss from the USD First Lien Term Loan B.
Changes in the fair value of the excluded components recognized in other comprehensive income during the year ended December 31, 2024 was a loss of $1 million.
Net investment hedge
The Group has investments in various subsidiaries which form part of the Group’s International segment with Euro functional currencies. As a result, the Group is exposed to the risk of fluctuations between the Euro and GBP exchange rates. The Group designated its Euro denominated term loans and receive fixed rate, pay fixed rate cross-currency interest swaps whereby the Group will receive GBP from, and pay Euro to, the counterparties at exchange rates which are determined at contract inception, as a net investment hedge which are intended to mitigate foreign currency exposure related to non-GBP net investments in certain Euro functional subsidiaries.
The following table summarizes the hedging instruments designated in a net investment hedge and were considered highly effective:
As of December 31,
20242023
Notional ($ in millions)Expiration dateNotional ($ in millions)Expiration date
Euro denominated debt$919 July 31, 2028 to April 29, 2029$980 July 21, 2026 to July 31, 2028
Cross-currency interest rate swaps$830 June 30, 2025 to September 30, 2026$359 June 30, 2025
The foreign currency transaction gains and losses on the euro-denominated portion of the term loan and the cross-currency interest swaps, which are designated and effective as a hedge of the Group’s net investment in its euro-denominated functional currency subsidiaries, are included as a component of the foreign currency translation adjustment. A gain, net of tax, of $73 million and $30 million was included in the foreign currency translation adjustment for the year ended December 31, 2024 and December 31, 2023 respectively and a loss, net of tax amounting to $145 million for the year ended December 31, 2022. There were no amounts reclassified out of accumulated other comprehensive (loss) (“AOCI”) pertaining to the net investment hedge during the years ended December 31, 2024, 2023, and 2022 as the Group has not sold or liquidated (or substantially liquidated) its hedged subsidiaries.
The following table summarizes the fair value of the Group's derivatives as of December 31, 2024 and 2023:
($ in millions)Derivative AssetsDerivative Liabilities
Dec-24Dec-23Dec-24Dec-23
Balance
sheet
location		Fair valueBalance
sheet
location		Fair
value		Balance
sheet
location		Fair
value		Balance
sheet
location		Fair
value
Derivatives designated as cash flow hedges:
Cross-currency interest rate swapsPrepaid expenses and other current assets$7 Prepaid expenses and other current assets$— Other current liabilities$(9)Other current liabilities$(104)
Cross-currency interest rate swapsOther non- current assets5 Other non- current assets— Other non- current liabilities— Other non- current liabilities(21)
Interest rate swapsPrepaid expenses and other current assets9 Prepaid expenses and other current assets— Other current liabilities— Other current liabilities— 
Interest rate swapsOther non- current assets5 Other non- current assets— Other non- current liabilities— Other non- current liabilities— 
Total derivatives designated as hedging instrument$26 $— $(9)$(125)
Derivatives designated as fair value hedges:
Cross-currency interest rate swapsPrepaid expenses and other current assets$2 Prepaid expenses and other current assets$— Other current liabilities$— Other current liabilities$— 
Cross-currency interest rate swapsOther non- current assets82 Other non- current assets— Other non- current liabilities— Other non- current liabilities— 
Total derivatives not designated as hedging instruments$84 $— $— $— 
Derivatives designated as net investment hedges:
Cross-currency interest rate swapsPrepaid expenses and other current assets23 Prepaid expenses and other current assets— Other current liabilities— Other current liabilities(1)
Cross-currency interest rate swapsOther non- current assets— Other non- current assets— Other non- current liabilities(5)Other non- current liabilities— 
Total derivatives designated as hedging instrument$23 $— $(5)$(1)
Derivatives not designated as hedging instruments:
Cross-currency interest rate swapsPrepaid expenses and other current assets— Prepaid expenses and other current assets— Other current liabilities(1)Other current liabilities(52)
Total derivatives not designated as hedging instruments$— $— $(1)$(52)
Total derivatives$133 $— $(15)$(178)