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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following table summarizes the Company’s interest rate swaps designated as fair value hedges:


	Nature of Swap	Notional Amount As of December 31,				Floating Interest Rate
Hedged Item		2020		2019
2012 Senior Notes due 2022	Pay 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 2023	Pay 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.

The following table provides information on the cross-currency swaps designated as net investment hedges under ASC Topic 815:


December 31, 2020
	Pay			Receive
Nature of Swap	Notional Amount		Weighted Average Interest Rate	Notional Amount		Weighted Average Interest Rate
Pay Fixed/Receive Fixed	€	1,079	1.43%	$	1,220	3.96%
Pay Floating/Receive Floating	959		Based on 3-month EURIBOR	1,080		Based on 3-month USD LIBOR
Total	€	2,038		$	2,300


December 31, 2019
	Pay			Receive
Nature of Swap	Notional Amount		Weighted Average Interest Rate	Notional Amount		Weighted Average Interest Rate
Pay Fixed/Receive Fixed	€	1,079	1.43%	$	1,220	3.96%
Pay Floating/Receive Floating	931		Based on 3-month EURIBOR	1,080		Based on 3-month USD LIBOR
Total	€	2,010		$	2,300

Gains and Losses on Derivatives Designated as Hedging Instruments

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 recorded		Amount of Income Recognized in the Consolidated Statements of Operations
		Year Ended December 31,
		2020		2019		2018
Interest expense, net		$	(205)	$	(208)	$	(215)
Descriptions	Location on Consolidated Statements of Operations
Net interest settlements and accruals on interest rate swaps	Interest expense, net	$	19	$	3	$	(2)
Fair value changes on interest rate swaps	Interest expense, net	47		25		2
Fair value changes on hedged debt	Interest expense, net	$	(47)	$	(25)	$	(2)

Schedule of Net Investment Hedges, Notional Amount That Will Be Settled At Expiry

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

Summary of Notional Amounts of Outstanding Derivative Positions

The following table summarizes the notional amounts of the Company's outstanding forward contracts that were designated as net investment hedges:


	December 31, 2020				December 31, 2019
Notional amount of net investment hedges	Sell		Buy		Sell	Buy
Contract to sell EUR for USD	€	524	$	627	—	—
Contract to sell GBP for EUR	£	134	€	148	—	—

The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards:


	December 31, 2020				December 31, 2019
Notional Amount of Currency Pair:	Sell		Buy		Sell		Buy
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

Amount of Gain/(Loss) Recognized in AOCI on Derivative Net Investment Hedging Relationships

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 Relationships	Year Ended December 31,							Year Ended December 31,						Year Ended December 31,
	2020		2019			2018		2020		2019		2018		2020		2019		2018
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.

Components of Accumulated Other Comprehensive Income

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, 2020		December 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 swap	2		2
Total cash flow hedges	(49)		—
Total net (loss) gain in AOCI	$	(269)	$	54

The following table shows changes in AOCI by component (net of tax):


	Year Ended December 31, 2020
	Pension and Other Retirement Benefits		Gains / (Losses) on Cash Flow Hedges		Foreign Currency Translation Adjustments		Net Investment Hedges		Total
Balance December 31, 2019	$	(92)	$	—	$	(401)	$	54	$	(439)
Other comprehensive income/(loss) before reclassifications	(32)		(51)		356		(273)		—
Amounts reclassified from AOCI	6		2		—		(1)		7

Other comprehensive income/(loss)	(26)		(49)		356		(274)		7
Balance December 31, 2020	$	(118)	$	(49)	$	(45)	$	(220)	$	(432)


	Year Ended December 31, 2019
	Pension and Other Retirement Benefits		Gains / (Losses) on Cash Flow Hedges		Foreign Currency Translation Adjustments		Net Investment Hedges		Total
Balance December 31, 2018	$	(53)	$	—	$	(406)	$	33	$	(426)
Adoption of ASU 2018-02	(17)		—		—		(3)		(20)
Other comprehensive income/(loss) before reclassifications	(24)		—		(27)		26		(25)
Amounts reclassified from AOCI	2		—		32		(2)		32
Other comprehensive income/(loss)	(39)		—		5		21		(13)
Balance December 31, 2019	$	(92)	$	—	$	(401)	$	54	$	(439)


	Year Ended December 31, 2018
	Pension and Other Retirement Benefits		Gains / (Losses) on Cash Flow Hedges		Foreign Currency Translation Adjustments		Net Investment Hedges		Gains on Available for Sale Securities		Total
Balance December 31, 2017	$	(61)	$	1	$	(113)	$	(1)	$	2	$	(172)
Adoption of ASU 2016-01	—		—		—		—		(2)		(2)
Other comprehensive income/(loss) before reclassifications	4		(1)		(293)		34		—		(256)
Amounts reclassified from AOCI	4		—		—		—		—		4
Other comprehensive income/(loss)	8		(1)		(293)		34		(2)		(254)
Balance December 31, 2018	$	(53)	$	—	$	(406)	$	33	$	—	$	(426)

Gains and Losses Recognized in Consolidated Statement of Operations on Derivatives Not Designated as Hedging instruments

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 Hedges	Location on Statement of Operations	2020		2019		2018
FX forwards	Other non-operating expense, net	$	41	$	(11)	$	(52)

Fair Value of Derivative Instruments

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 Location	December 31, 2020		December 31, 2019
Assets:
Derivatives designated as accounting hedges:
Cross-currency swaps designated as net investment hedges	Other assets	$	—	$	56
Interest rate swaps designated as fair value hedges	Other assets	57		27
Total derivatives designated as accounting hedges		57		83
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilities	Other current assets	31		9
Total assets		$	88	$	92
Liabilities:
Derivatives designated as accounting hedges:
FX forwards designated as net investment hedges	Accounts payable and accrued liabilities	$	16	$	—
Cross-currency swaps designated as net investment hedges	Accounts payable and accrued liabilities	23		—
Cross-currency swaps designated as net investment hedges	Other liabilities	144		—
Interest rate swaps	Other liabilities	1		—
Total derivatives designated as accounting hedges		184		—
Non-derivative instrument designated as accounting hedge:
Long-term debt designated as net investment hedge	Long-term debt	1,530		1,403
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilities	Accounts payable and accrued liabilities	2		—
Total liabilities		$	1,716	$	1,403

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5580258-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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-Topic 815
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-URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5579240-113959

+ Details