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.

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 LIBOR, 6-month LIBOR, and SOFR. 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 statements of operations.

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


		Notional Amount
Hedged Item	Nature of Swap	As of September 30, 2022		As of December 31, 2021		Floating Interest Rate
2017 Senior Notes due 2023	Pay Floating/Receive Fixed	$	—	$	250	3-month USD LIBOR
2017 Senior Notes due 2028	Pay Floating/Receive Fixed	$	500	$	500	3-month USD LIBOR
2020 Senior Notes due 2025	Pay Floating/Receive Fixed	$	300	$	300	6-month USD LIBOR
2014 Senior Notes due 2044	Pay Floating/Receive Fixed	$	300	$	300	3-month USD LIBOR
2018 Senior Notes due 2048	Pay Floating/Receive Fixed	$	300	$	300	3-month USD LIBOR
2018 Senior Notes due 2029 (1)	Pay Floating/Receive Fixed	$	400	$	—	SOFR
2022 Senior Notes due 2052 (2)	Pay Floating/Receive Fixed	$	500	$	—	SOFR
2022 Senior Notes due 2032 (3)	Pay Floating/Receive Fixed	$	250	$	—	SOFR
Total		$	2,550	$	1,650


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/(loss) recognized in the consolidated statements of operations
		Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
Interest expense, net		$	(58)	$	(53)	$	(166)	$	(109)

Descriptions	Location on Consolidated Statements of Operations
Net interest settlements and accruals on interest rate swaps	Interest expense, net	$	(4)	$	6	$	5	$	17
Fair value changes on interest rate swaps	Interest expense, net	$	(95)	$	(16)	$	(227)	$	(40)
Fair value changes on hedged debt	Interest expense, net	$	95	$	16	$	227	$	40

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.

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:


September 30, 2022
	Pay			Receive
Nature of Swap	Notional Amount		Weighted Average Interest Rate	Notional Amount		Weighted Average Interest Rate
Pay Fixed/Receive Fixed	€	765	3.67%	$	800	5.25%
Pay Floating/Receive Floating	450		Based on 3-month EURIBOR	500		Based on 3-month USD LIBOR
Pay Floating/Receive Floating	1,688		Based on ESTR	1,750		Based on SOFR
Total	€	2,903		$	3,050


December 31, 2021
	Pay			Receive
Nature of Swap	Notional Amount		Weighted Average Interest Rate	Notional Amount		Weighted Average Interest Rate
Pay Fixed/Receive Fixed	€	909	2.16%	$	1,050	4.45%
Pay Floating/Receive Floating	1,179		Based on 3-month EURIBOR	1,350		Based on 3-month USD LIBOR
Total	€	2,088		$	2,400

As of September 30, 2022 these hedges will expire and the notional amounts will be settled as follows unless terminated early at the discretion of the Company:


Years Ending December 31,

2026	€	450
2027	€	531
2028	€	588
2029	€	373
2031	€	481
2032	€	480
Total	€	2,903


Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships	Amount of Gain/(Loss) Recognized in AOCL on Derivative, net of Tax				Amount of Gain/(Loss) Reclassified from AOCL into Income, net of Tax				Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)
	Three Months Ended September 30,				Three Months Ended September 30,				Three Months Ended September 30,
	2022		2021		2022		2021		2022		2021
FX forward contracts	$	—	$	2	$	—	$	—	$	—	$	—
Cross currency swaps	131		44		—		—		17		8
Long-term debt	62		26		—		—		—		—
Total net investment hedges	$	193	$	72	$	—	$	—	$	17	$	8
Derivatives in Cash Flow Hedging Relationships

Interest rate contracts	$	—	$	1	$	—	$	(1)	$	—	$	—
Total cash flow hedges	$	—	$	1	$	—	$	(1)	$	—	$	—
Total	$	193	$	73	$	—	$	(1)	$	17	$	8


Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships	Amount of Gain/(Loss) Recognized in AOCL on Derivative, net of Tax				Amount of Gain/(Loss) Reclassified from AOCL into Income, net of Tax				Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)
	Nine Months Ended September 30,				Nine Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021		2022		2021
FX forward contracts	$	—	$	18	$	—	$	1	$	—	$	—
Cross currency swaps	273		98		—		—		38		27
Long-term debt	148		61		—		—		—		—
Total net investment hedges	$	421	$	177	$	—	$	1	$	38	$	27
Derivatives in Cash Flow Hedging Relationships

Interest rate contracts	$	—	$	—	$	(1)	$	(2)	$	—	$	—

Total cash flow hedges	$	—	$	—	$	(1)	$	(2)	$	—	$	—
Total	$	421	$	177	$	(1)	$	(1)	$	38	$	27


	Cumulative Gains/(Losses), net of tax
	September 30, 2022		December 31, 2021
Net investment hedges
Cross currency swaps	$	292	$	19
FX forwards	29		29
Long-term debt	121		(27)
Total net investment hedges	$	442	$	21
Cash flow hedges
Interest rate contracts	$	(48)	$	(49)
Cross currency swaps	2		2
Total cash flow hedges	(46)		(47)
Total net gain (loss) in AOCL	$	396	$	(26)

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 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 January 2023.

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


	September 30, 2022				December 31, 2021
Notional amount of currency pair:	Sell		Buy		Sell		Buy
Contracts to sell USD for GBP	$	138	£	115	$	126	£	92
Contracts to sell USD for Japanese yen	$	18	¥	2,500	$	22	¥	2,500
Contracts to sell USD for Canadian dollars	$	141	C$	183	$	120	C$	150
Contracts to sell USD for Singapore dollars	$	58	S$	80	$	67	S$	90
Contracts to sell USD for euros	$	332	€	325	$	364	€	315
Contracts to sell USD for Russian ruble	$	—	₽	—	$	16	₽	1,200
Contracts to sell USD for Indian rupee	$	20	₹	1,600	$	7	₹	500
Contracts to sell GBP for USD	£	—	$	—	£	172	$	231
Contracts to sell euros for USD	€	135	$	134	€	—	$	—

The following table summarizes the impact to the consolidated statements of operations relating to the net losses on the Company’s derivatives which are not designated as hedging instruments:


Derivatives not designated as accounting hedges	Location on Consolidated Statements of Operations	Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
FX forwards	Other non-operating income, net	$	(46)	$	(18)	$	(103)	$	(25)
Foreign exchange forwards relating to RMS acquisition(1)	Other non-operating (expense) income, net	$	—	$	(13)	$	—	$	(13)

(1) The Company entered into forward contracts to sell $1,675 million for £1,200 to hedge a portion of the GBP denominated RMS purchase price. The contract was terminated on September 14, 2021 and resulted in a $13 million loss.

The table below shows the classification between assets and liabilities on the Company’s consolidated balance sheets for the fair value of the derivative instrument 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	September 30, 2022		December 31, 2021
Assets:
Derivatives designated as accounting hedges:

Cross-currency swaps designated as net investment hedges	Other assets	$	181	$	53

Interest rate swaps designated as fair value hedges	Other assets	—		13
Total derivatives designated as accounting hedges		181		66
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilities	Other current assets	—		1
Total assets		$	181	$	67
Liabilities:
Derivatives designated as accounting hedges:


Cross-currency swaps designated as net investment hedges	Other liabilities	$	—	$	17
Interest rate swaps designated as fair value hedges	Other liabilities	237		23
Total derivatives designated as accounting hedges		237		40
Non-derivatives designated as accounting hedges:
Long-term debt designated as net investment hedge	Long-term debt	1,225		1,421
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilities	Accounts payable and accrued liabilities	28		12
Total liabilities		$	1,490	$	1,473