Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Balance Sheet Classification of derivative instruments


	Fair Value of						Fair Value of
	Hedge Assets						Hedge Liabilities
	September 30,		December 31,		September 30,		September 30,		December 31,		September 30,
	2021		2020		2020		2021		2020		2020
Derivatives designated as hedging instruments:
Interest rate swaps - fair value hedges (a)	$	9	$	17	$	16	$	1	$	—	$	—
Cash flow hedges of foreign exchange risk (b)		9		6		9		54		115		67
Net investment hedges (c)		2		1		2		28		52		27
Total derivatives accounted for as hedges	$	20	$	24	$	27	$	83	$	167	$	94
Derivatives not designated as hedges:
Foreign exchange derivative contracts (d)		1		1		3		4		3		6
Total derivatives	$	21	$	25	$	30	$	87	$	170	$	100


Current	$	15	$	13	$	16	$	4	$	15	$	13
Noncurrent		6		12		14		83		155		87
Total derivatives	$	21	$	25	$	30	$	87	$	170	$	100

(a) The notional amounts of the interest rate swaps designated as fair value hedges were €725 million at September 30, 2021, December 31, 2020 and September 30, 2020. The maximum maturity dates were in 2024 for all three periods.

(b) The notional amounts of the cash flow hedges of foreign exchange risk were $878 million at September 30, 2021, $978 million at December 31, 2020 and $1.1 billion at September 30, 2020. The maximum maturity dates were in 2023 for all three periods.

(c) The notional amounts of the net investment hedges were €311 million at September 30, 2021, €311 million at December 31, 2020 and €311 million at September 30, 2020. The maximum maturity dates were in 2027 for September 30, 2021 and December 31, 2020 and in 2020 for September 30, 2020.

(d) The notional amounts of the foreign exchange derivative contracts were $291 million, $247 million and $247 million at September 30, 2021, December 31, 2020 and September 30, 2020, respectively. The maximum maturity dates were in 2021 for all three periods.


	Gain (Loss) Recognized in OCI (Effective Portion)				Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (1)
	Three months ended September 30,				Three months ended September 30,
Derivatives designated as hedging instruments:	2021		2020		2021		2020
Cash Flow Hedges
Cash flow hedges of foreign exchange risk (a)	$	24	$	(61)	$	24	$	(80)
Cash flow hedges of interest rate risk (b)
Net Investment Hedges
Net Investment Hedges (b)		13		(26)		1		1
	$	37	$	(87)	$	25	$	(79)

	Gain (Loss) Recognized in OCI (Effective Portion)				Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (1)
	Nine months ended September 30,				Nine months ended September 30,
Derivatives designated as hedging instruments:	2021		2020		2021		2020
Cash Flow Hedges
Cash flow hedges of foreign exchange risk (a)	$	56	$	(51)	$	57	$	(71)
Cash flow hedges of interest rate risk (b)								(1)
Net Investment Hedges
Net Investment Hedges (b)		27		(29)		2		4
	$	83	$	(80)	$	59	$	(68)

	Amount of Gain (Loss) Recognized in Other income (expense), net				Amount of Gain (Loss) Recognized in Other income (expense), net
	Three months ended September 30,				Nine months ended September 30,
Derivatives not designated as hedges:	2021		2020		2021		2020
Foreign exchange derivative contracts	$	2	$	3	$	9	$	13

(1) Gains and losses reclassified from accumulated OCI and recognized in income are recorded to (a) other income (expense), net or (b) interest expense, net.

Effects of derivative instruments on the results of operations