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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
 12 Months Ended
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
The Company is exposed to global market risks, including risks from changes in FX rates and changes in interest rates. Accordingly, the Company uses derivatives in certain instances to manage the aforementioned financial exposures that occur in the normal course of business. The Company does not hold or issue derivatives for speculative purposes.
Derivatives and non-derivative instruments designated as accounting hedges:
Interest Rate Swaps Designated as Fair Value Hedges
The Company has entered into interest rate swaps to convert the fixed interest rate on certain of its long-term debt to a floating interest rate based on the 3-month and 6-month LIBOR. The purpose of these hedges is to mitigate the risk associated with changes in the fair value of the long-term debt, thus the Company has designated these swaps as fair value hedges. The fair value of the swaps is adjusted quarterly with a corresponding adjustment to the carrying value of the debt. The changes in the fair value of the swaps and the underlying hedged item generally offset and the net cash settlements on the swaps are recorded each period within interest expense, net in the Company’s consolidated statement of operations.
The following table summarizes the Company’s interest rate swaps designated as fair value hedges:
Nature of SwapNotional Amount
As of December 31,		Floating Interest Rate
Hedged Item20202019
2012 Senior Notes due 2022Pay Floating/Receive Fixed$330 $330 3-month LIBOR
2017 Senior Notes due 2021 (1)
Pay Floating/Receive Fixed$— $500 3-month LIBOR
2017 Senior Notes due 2023Pay Floating/Receive Fixed$250 $250 3-month LIBOR
2017 Senior Notes due 2028 (2)
Pay Floating/Receive Fixed$500 $— 3-month LIBOR
2020 Senior Notes due 2025 (3)
Pay Floating/Receive Fixed$300 $— 6-month LIBOR
Total$1,380 $1,080 
(1) These interest rates swaps were terminated in conjunction with the repayment of the 2017 Senior Notes due 2021 in the third quarter of 2020.
(2) These interest rate swaps were executed in the first quarter of 2020.
(3) These interest rate swaps were executed in the third quarter of 2020.
Refer to Note 18 for information on the cumulative amount of fair value hedging adjustments included in the carrying amount of the above hedged items.
The following table summarizes the impact to the statement of operations of the Company’s interest rate swaps designated as fair value hedges:
Total amounts of financial statement line item presented in the statements of operations in which the effects of fair value hedges are recordedAmount of Income
Recognized in the Consolidated
Statements of Operations
Year Ended December 31,
202020192018
Interest expense, net$(205)$(208)$(215)

Descriptions		Location on Consolidated Statements of Operations
Net interest settlements and accruals on interest rate swapsInterest expense, net$19 $3 $(2)
Fair value changes on interest rate swapsInterest expense, net47 25 2 
Fair value changes on hedged debtInterest expense, net$(47)$(25)$(2)

Net Investment Hedges
Debt designated as net investment hedges
The Company has designated €500 million of the 2015 Senior Notes Due 2027 and €750 million of the 2019 Senior Notes due 2030 as net investment hedges to mitigate FX exposure related to a portion of the Company’s euro net investment in certain foreign subsidiaries against changes in euro/USD exchange rates. These hedges are designated as accounting hedges under the applicable sections of ASC Topic 815 and will end upon the repayment of the notes in 2027 and 2030, respectively, unless terminated early at the discretion of the Company.
Cross currency swaps designated as net investment hedges
The Company enters into cross-currency swaps to mitigate FX exposure related to a portion of the Company’s euro net investment in certain foreign subsidiaries against changes in euro/USD exchange rates. The following table provides information on the cross-currency swaps designated as net investment hedges under ASC Topic 815:
December 31, 2020
PayReceive
Nature of SwapNotional AmountWeighted Average Interest RateNotional AmountWeighted Average Interest Rate
Pay Fixed/Receive Fixed€1,079 1.43%$1,220 3.96%
Pay Floating/Receive Floating959 Based on 3-month EURIBOR1,080 Based on 3-month USD LIBOR
Total€2,038 $2,300 

December 31, 2019
PayReceive
Nature of SwapNotional AmountWeighted Average Interest RateNotional AmountWeighted Average Interest Rate
Pay Fixed/Receive Fixed
€1,079 1.43%$1,220 3.96%
Pay Floating/Receive Floating931 Based on 3-month EURIBOR1,080 Based on 3-month USD LIBOR
Total
€2,010 $2,300 

During the first quarter of 2020, the Company executed €450 million notional value of cross-currency swaps (set to expire in 2026). During the third quarter of 2020, the Company early-terminated €422.5 million notional value of cross-currency swaps (set to expire in 2021), resulting in immaterial cash proceeds.
As of December 31, 2020, these hedges will expire and the notional amounts will be settled as follows unless terminated early at the discretion of the Company:
Year Ending December 31,
2021€265 
2022€438 
2023€442 
2024€443 
2026€450 
Total€2,038 
Forward contracts designated as net investment hedges
The Company also enters into forward contracts to mitigate FX exposure related to a portion of the Company’s euro and GBP net investment in certain foreign subsidiaries against changes in euro/USD and GBP/euro exchange rates. The following table summarizes the notional amounts of the Company's outstanding forward contracts that were designated as net investment hedges:
December 31, 2020December 31, 2019
Notional amount of net investment hedgesSellBuySellBuy
Contract to sell EUR for USD€524 $627 — — 
Contract to sell GBP for EUR£134 €148 — — 
These forward contracts both will expire in February 2021.
Cash Flow Hedges
Interest Rate Forward Contracts
In January 2020, the Company entered into $300 million notional amount treasury rate locks with an average locked-in U.S. 30-year Treasury rate of 2.0103%, which were designated as cash flow hedges and used to manage the Company’s interest rate risk during the period prior to an anticipated issuance of 30-year debt. The treasury lock interest rate forward contracts matured on April 30, 2020, resulting in a cumulative loss of $68 million, which was recognized in AOCI. The loss on the Treasury rate lock will be reclassified from AOCI to earnings in the same period that the hedged transaction (i.e. interest payments on the 3.25% 2020 Senior Notes, due 2050) impacts earnings.
The following table provides information on the gains/(losses) on the Company’s net investment and cash flow hedges:
Amount of Gain/(Loss)
Recognized in AOCI on
Derivative, net of Tax		Amount of Gain/(Loss)
Reclassified from AOCI into
Income, net of tax		Gain/(Loss) Recognized in
Income on Derivative
(Amount Excluded from
Effectiveness Testing)
Derivative and Non-Derivative Instruments in Net Investment Hedging RelationshipsYear Ended December 31,Year Ended December 31,Year Ended December 31,
202020192018202020192018202020192018
FX forward contracts$(14)$4 $— $— $2 $— $— $— $— 
Cross currency swaps(165)29 12 — — — 50 52 11 
Long-term debt(95)(7)
(1)
22 — — — — — — 
Total net investment hedges$(274)$26 $34 $— $2 $— $50 $52 $11 
Derivatives in Cash Flow Hedging Relationships
Cross currency swap$— $— $2 $— $— $— $— $— $— 
Interest rate contracts(51)— (2)(2)— — — — — 
Total cash flow hedges(51)— — (2)— — — — — 
Total$(325)$26 $34 $(2)$2 $— $50 $52 $11 
(1)Due to the Company's adoption of ASU 2018-02 during 2019, $3 million related to the tax effect of this net investment hedge was reclassified to retained earnings.
The cumulative amount of net investment hedge and cash flow hedge gains (losses) remaining in AOCI is as follows:
Cumulative Gains/(Losses), net of tax
December 31, 2020December 31, 2019
Net investment hedges
Cross currency swaps$(124)$41 
FX forwards 12 26 
Long-term debt (108)(13)
Total net investment hedges(220)54 
Cash flow hedges
Interest Rate Contract(51)(2)
Cross-currency swap2 2 
Total cash flow hedges(49)— 
Total net (loss) gain in AOCI$(269)$54 
Derivatives not designated as accounting hedges:
Foreign exchange forwards
The Company also enters into foreign exchange forward contracts to mitigate the change in fair value on certain assets and liabilities denominated in currencies other than a subsidiary’s functional currency. These forward contracts are not designated as accounting hedges under the applicable sections of Topic 815 of the ASC. Accordingly, changes in the fair value of these contracts are recognized immediately in other non-operating (expense) income, net in the Company’s consolidated statements of operations along with the FX gain or loss recognized on the assets and liabilities denominated in a currency other than the subsidiary’s functional currency. These contracts have expiration dates at various times through February 2021.
The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards:
 December 31, 2020December 31, 2019
Notional Amount of Currency Pair:SellBuySellBuy
Contracts to sell USD for GBP$295 
£
222 $235 
£
178 
Contracts to sell USD for Japanese Yen$15 ¥1,600 $29 ¥3,200 
Contracts to sell USD for Canadian dollars$107 
C$
140 $83 
C$
110 
Contracts to sell USD for Singapore dollars$59 
S$
79 $41 
S$
56 
Contracts to sell USD for Euros$447 
€
376 $421 
€
378 
Contracts to sell Euros for GBP€135 
£
121 €25 
£
21 
Contracts to sell USD for Russian Ruble$13 ₽1,000 $— ₽— 
Contracts to sell USD for Indian Rupee$18 
₹
1,350 $— 
₹
— 
NOTE: € = Euro, £ = British pound, S$ = Singapore dollar, $ = U.S. dollar, ¥ = Japanese yen, C$ = Canadian dollar, ₽= Russian Ruble, ₹= Indian Rupee
The following table summarizes the impact to the consolidated statements of operations relating to the net gain (loss) on the Company’s derivatives which are not designated as hedging instruments:
Year Ended December 31,
Derivatives Not Designated as Accounting HedgesLocation on Statement of Operations202020192018
FX forwardsOther non-operating expense, net$41 $(11)$(52)
The table below shows the classification between assets and liabilities on the Company’s consolidated balance sheets for the fair value of derivative instruments as well as the carrying value of its non-derivative debt instruments designated and qualifying as net investment hedges:
Derivative and Non-derivative Instruments
Balance Sheet LocationDecember 31, 2020December 31, 2019
Assets:
Derivatives designated as accounting hedges:
Cross-currency swaps designated as net investment hedgesOther assets$— $56 
Interest rate swaps designated as fair value hedgesOther assets57 27 
Total derivatives designated as accounting hedges57 83 
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilitiesOther current assets31 9 
Total assets$88 $92 
Liabilities:
Derivatives designated as accounting hedges:
FX forwards designated as net investment hedgesAccounts payable and accrued liabilities$16 $— 
Cross-currency swaps designated as net investment hedgesAccounts payable and accrued liabilities23 — 
Cross-currency swaps designated as net investment hedgesOther liabilities144 — 
Interest rate swapsOther liabilities1 — 
Total derivatives designated as accounting hedges184 — 
Non-derivative instrument designated as accounting hedge:
Long-term debt designated as net investment hedgeLong-term debt1,530 1,403 
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilitiesAccounts payable and accrued liabilities2 — 
Total liabilities$1,716 $1,403