XML 101 R32.htm IDEA: XBRL DOCUMENT v3.24.1.u1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 3 Months Ended
Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
The following table summarizes the Company’s interest rate swaps designated as fair value hedges:
Notional Amount
Hedged ItemNature of Swap
As of
March 31, 2024
As of December 31, 2023
Floating Interest Rate
2017 Senior Notes due 2028Pay Floating/Receive Fixed$500 $500 SOFR
2020 Senior Notes due 2025Pay Floating/Receive Fixed300 300 SOFR
2014 Senior Notes due 2044Pay Floating/Receive Fixed300 300 SOFR
2018 Senior Notes due 2048Pay Floating/Receive Fixed300 300 SOFR
2018 Senior Notes due 2029Pay Floating/Receive Fixed400 400 SOFR
2022 Senior Notes due 2052Pay Floating/Receive Fixed500 500 SOFR
2022 Senior Notes due 2032Pay Floating/Receive Fixed250 250 SOFR
Total$2,550 $2,550 
The following tables provide information on the cross-currency swaps designated as net investment hedges under ASC Topic 815:
March 31, 2024
PayReceive
Nature of SwapNotional AmountWeighted Average Interest RateNotional AmountWeighted Average Interest Rate
Pay Fixed/Receive Fixed€765 3.67%$800 5.25%
Pay Floating/Receive Floating2,138 Based on ESTR2,250 Based on SOFR
Total€2,903 $3,050 
December 31, 2023
PayReceive
Nature of SwapNotional AmountWeighted Average Interest RateNotional AmountWeighted Average Interest Rate
Pay Fixed/Receive Fixed€765 3.67%$800 5.25%
Pay Floating/Receive Floating2,138 Based on ESTR2,250 Based on SOFR
Total€2,903 $3,050 
Gains and Losses on Derivatives Designated as Hedging Instruments
The following table summarizes the impact to the statements of operations of the Company’s interest rate swaps designated as fair value hedges:
Total amounts of financial statement line item presented in the statements of operations in which the effects of fair value hedges are recordedAmount of income/(loss) recognized in the consolidated statements of operations
Three Months Ended March 31,
20242023
Interest expense, net$(62)$(48)

Description
Location on Consolidated Statements of Operations
Net interest settlements and accruals on interest rate swaps
Interest expense, net
$(25)$(18)
Fair value changes on interest rate swapsInterest expense, net$(29)$46 
Fair value changes on hedged debtInterest expense, net$29 $(46)
Schedule of Net Investment Hedges, Notional Amount That Will Be Settled At Expiry
As of March 31, 2024 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,
Notional Amount (Pay)
Notional Amount (Receive)
2026€450 $500 
2027531 550 
2028588 600 
2029373 400 
2031481 500 
2032480 500 
Total€2,903 $3,050 
Amount of Gain/(Loss) Recognized in AOCI on Derivative Net Investment Hedging Relationships (Effectiveness Portion)
The following table provides information on the gains/(losses) on the Company’s net investment and cash flow hedges:
Derivative and Non-Derivative Instruments in Net Investment Hedging RelationshipsAmount of Gain/(Loss) Recognized in AOCL on Derivative, net of TaxAmount of Loss Reclassified from AOCL into Income, net of TaxGain Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)
Three Months Ended
March 31,
Three Months Ended
March 31,
Three Months Ended
March 31,
202420232024202320242023
Cross currency swaps$51 $(39)$— $— $11 $16 
Long-term debt23 (18)— — — — 
Total net investment hedges$74 $(57)$— $— $11 $16 
Derivatives in Cash Flow Hedging Relationships
Interest rate contracts$— $— $(1)$(1)$— $— 
Total cash flow hedges$— $— $(1)$(1)$— $— 
Total$74 $(57)$(1)$(1)$11 $16 
Components of Accumulated Other Comprehensive Income The cumulative amount of net investment hedge and cash flow hedge gains (losses) remaining in AOCL is as follows:
Cumulative Gains/(Losses), net of tax
March 31, 2024December 31, 2023
Net investment hedges
Cross currency swaps$72 $21 
FX forwards29 29 
Long-term debt26 3 
Total net investment hedges$127 $53 
Cash flow hedges
Interest rate contracts$(44)$(45)
Cross currency swaps1 1 
Total cash flow hedges(43)(44)
Total net gain in AOCL$84 $9 
The following tables show changes in AOCL by component (net of tax):
Three Months Ended March 31,
20242023
Gains/(Losses)Pension and Other Retirement BenefitsCash Flow HedgesForeign Currency Translation AdjustmentsNet Investment HedgesTotalPension and Other Retirement BenefitsCash Flow HedgesForeign Currency Translation AdjustmentsNet Investment HedgesTotal
Balance at December 31,
$(56)$(44)$(520)$53 $(567)$(47)$(45)$(736)$185 $(643)
Other comprehensive (loss)/income before reclassifications
(1)— (115)74 (42)— — 110 (57)53 
Amounts reclassified from AOCL— 1 — — 1 — 1 — — 1 
Other comprehensive (loss)/income
(1)1 (115)74 (41)— 1 110 (57)54 
Balance at March 31,
$(57)$(43)$(635)$127 $(608)$(47)$(44)$(626)$128 $(589)
Summary of Notional Amounts of Outstanding Foreign Exchange Forwards
The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards:
March 31, 2024December 31, 2023
Notional amount of currency pair(1):
SellBuySellBuy
Contracts to sell USD for GBP$460 £362 $513 £407 
Contracts to sell USD for JPY
$17 ¥2,500 $14 ¥2,000 
Contracts to sell USD for CAD
$48 C$65 $147 C$200 
Contracts to sell USD for SGD
$52 S$70 $50 S$67 
Contracts to sell USD for EUR
$22 €20 $60 €55 
Contracts to sell USD for INR
$23 ₹1,900 $23 ₹1,900 
Contracts to sell USD for AUD
$5 
A$
8$5 A$8 
Contracts to sell CAD for USD
C$— 
$
— C$25 
$
19 
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 losses on the Company’s derivatives which are not designated as hedging instruments:
Derivatives not designated as accounting hedgesLocation on Consolidated Statements of Operations
Three Months Ended March 31,
20242023
FX forwardsOther non-operating income, net$(13)$5 
Total return swaps
Operating expense
$3 $— 
Total return swaps
SG&A expense
$1 $— 
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 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 LocationMarch 31, 2024December 31, 2023
Assets:
Derivatives designated as accounting hedges:
Cross-currency swaps designated as net investment hedgesOther assets$14 $3 
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilitiesOther current assets— 13 
Total assets$14 $16 
Liabilities:
Derivatives designated as accounting hedges:
Interest rate swaps designated as fair value hedges
Accounts payable and accrued liabilities$14 $— 
Cross-currency swaps designated as net investment hedgesOther liabilities125 183 
Interest rate swaps designated as fair value hedgesOther liabilities197 183 
Total derivatives designated as accounting hedges336 366 
Non-derivatives designated as accounting hedges:
Long-term debt designated as net investment hedgeLong-term debt1,350 1,381 
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilitiesAccounts payable and accrued liabilities4 — 
Total liabilities$1,690 $1,747