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Accounting for Derivative Instruments and Hedging Activities (Notes)
 6 Months Ended
Jun. 30, 2018
Accounting for Derivative Instruments and Hedging Activities [Abstract]  
Accounting for Derivative Instruments and Hedging Activities
Accounting for Derivative Instruments and Hedging Activities

The Company uses derivative instruments to manage foreign exchange risk on the Sterling Notes, and does not hold or issue derivative instruments for speculative trading purposes.

Cross-currency derivative instruments are used to effectively convert £1.275 billion aggregate principal amount of fixed-rate British pound sterling denominated debt, including annual interest payments and the payment of principal at maturity, to fixed-rate U.S. dollar denominated debt. The cross-currency swaps have maturities of June 2031 and July 2042. The Company is required to post collateral on the cross-currency derivative instruments when the derivative contracts are in a liability position. In May 2016, the Company entered into a collateral holiday agreement for 80% of both the 2031 and 2042 cross-currency swaps, which eliminates the requirement to post collateral for three years. The fair value of the Company's cross-currency derivatives on its consolidated balance sheets was $78 million and $25 million included in other long-term liabilities as of June 30, 2018 and December 31, 2017, respectively.

The Company’s derivative instruments are not designated as hedges and are marked to fair value each period, with the impact recorded as a gain or loss on financial instruments, net in the consolidated statements of operations. While these derivative instruments are not designated as hedges for accounting purposes, management continues to believe such instruments are closely correlated with the respective debt, thus managing associated risk.

The effect of financial instruments on the consolidated statements of operations is presented in the table below.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Loss on Financial Instruments, Net:
 
 
 
 
 
 
 
Change in fair value of cross-currency derivative instruments
(181
)
 
(7
)
 
$
(53
)
 
$
58

Foreign currency remeasurement of Sterling Notes to U.S. dollars
106

 
(63
)
 
41

 
(91
)
Other, net
—

 
—

 
—

 
1

 
$
(75
)
 
$
(70
)
 
$
(12
)
 
$
(32
)