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Risk Management
 9 Months Ended
Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Risk Management
Risk Management
Foreign Currency Risk
As of September 30, 2017, the Company had outstanding foreign exchange contracts with notional amounts totaling $541 million, compared to $717 million outstanding at December 31, 2016. The Company does not believe these financial instruments should subject it to undue risk due to foreign exchange movements because gains and losses on these contracts should generally offset gains and losses on the underlying assets, liabilities and transactions.
The following table shows the five largest net notional amounts of the positions to buy or sell foreign currency as of September 30, 2017, and the corresponding positions as of December 31, 2016: 
 
Notional Amount
Net Buy (Sell) by Currency
September 30,
2017
 
December 31,
2016
Euro
$
185

 
$
122

British Pound
69

 
246

Chinese Renminbi
(72
)
 
(108
)
Brazilian Real
(47
)
 
(56
)
Australian Dollar
(45
)
 
(51
)

During the nine months ended September 30, 2017, the Company entered into forward contracts to sell £50 million, expiring in December 2017. The Company also entered into forward contracts to sell £25 million, expiring in June 2018, as well as to sell £25 million, expiring in September 2018. The forward contracts have been designated as a net investment hedge which is in place to partially hedge the Company's British pound foreign currency exposure on its net investment in Airwave Solutions Limited. The gains and losses on the Company's net investment in British pound-denominated foreign operations, driven by changes in foreign exchange rates, are economically offset by movements in the fair values of the forward contracts designated as net investment hedges. Any changes in fair value of the net investment hedges are reflected as a component of Accumulated other comprehensive loss. As of September 30, 2017, the fair value of the derivative contracts was a $3 million liability.
Interest Rate Risk
The Company's subsidiaries have variable interest loans denominated in the Euro and Chilean Peso. The Company has interest rate swap agreements in place which change the characteristics of interest rate payments from variable to maximum fixed-rate payments. The interest rate swaps are not designated as hedges. As such, changes in the fair value of the interest rate swaps are included in Other income (expense) in the Company’s condensed consolidated statements of operations. The fair value of the interest rate swaps was a $1 million liability at September 30, 2017 and de minimus December 31, 2016.
Counterparty Risk
The use of derivative financial instruments exposes the Company to counterparty credit risk in the event of non-performance by counterparties. However, the Company’s risk is limited to the fair value of the instruments when the derivative is in an asset position. The Company actively monitors its exposure to credit risk. As of September 30, 2017, all of the counterparties have investment grade credit ratings. As of September 30, 2017, the Company had $7 million of exposure to aggregate net credit risk with all counterparties.
The following tables summarize the fair values and locations in the condensed consolidated balance sheets of all derivative financial instruments held by the Company as of September 30, 2017 and December 31, 2016:
 
Fair Values of Derivative Instruments
 
Assets
 
Liabilities
September 30, 2017
Fair
Value
 
Balance
Sheet
Location
 
Fair
Value
 
Balance
Sheet
Location
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Foreign exchange contracts
$
—

 
Other assets
 
$
3

 
Other liabilities
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Foreign exchange contracts
$
7

 
Other current assets
 
$
5

 
Accrued liabilities
Interest agreements
—

 
Other current assets
 
1

 
Accrued liabilities
Total derivatives not designated as hedging instruments
$
7

 
 
 
$
6

 
 
Total derivatives
$
7

 
 
 
$
9

 
 
 
Fair Values of Derivative Instruments
 
Assets
 
Liabilities
December 31, 2016
Fair
Value
 
Balance
Sheet
Location
 
Fair
Value
 
Balance
Sheet
Location
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Foreign exchange contracts
$
9

 
Other current assets
 
$
32

 
Accrued liabilities

The following table summarizes the effect of derivatives designated as hedging instruments on the Company's condensed consolidated financial statements for the three and nine months ended September 30, 2017 and October 1, 2016:
 
Three Months Ended
 
Nine Months Ended
 
Balance Sheet
Location
Derivatives Designated as Hedging Instruments
September 30, 2017
 
October 1, 2016
 
September 30, 2017
 
October 1, 2016
 
Foreign exchange contracts
$
(1
)
 
$
—

 
$
(3
)
 
$
—

 
Other comprehensive income (loss)
The following table summarizes the effect of derivatives not designated as hedging instruments on the Company's condensed consolidated financial statements for the three and nine months ended September 30, 2017 and October 1, 2016:
 
Three Months Ended
 
Nine Months Ended
 
Statements of
Operations Location
Gain (loss) on Derivative Instruments
September 30,
2017
 
October 1,
2016
 
September 30,
2017
 
October 1,
2016
 
Interest agreements
$
(1
)
 
$
—

 
$
(1
)
 
$
—

 
Other income (expense)
Foreign exchange contracts
4

 
(11
)
 
15

 
(41
)
 
Other income (expense)
Total derivatives
$
3

 
$
(11
)
 
$
14

 
$
(41
)