Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The table below presents the fair value of our derivative financial instruments as well as their classification on the consolidated balance sheets at September 30, 2022 and December 31, 2021, as follows (in millions):

		September 30, 2022		December 31, 2021
Derivatives designated as	Balance Sheet Location	Fair Value
Cash flow hedging contracts	Other current and noncurrent liabilities	$	—	25

Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) by Component

The amount of realized losses reclassified from AOCI to the statement of operations consists of the following

(in millions):

Derivatives designated as hedging instruments	2022		2021
Cash flow hedging contracts
Three Months Ended September 30,	$	—	21
Nine Months Ended September 30,	$	22	62

The tables below present further information about our reclassifications out of accumulated other comprehensive loss by component for the three and nine months ended September 30, 2022:

Three Months Ended September 30, 2022	Decrease (Increase) in Net Income		Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Interest rate swaps	$	—	Interest expense
Income tax benefit	—		Income tax expense
Net of tax	$	—
Amortization of pension & post-retirement plans(1)
Net actuarial loss	$	32	Other (expense) income, net
Prior service cost	(2)		Other (expense) income, net
Total before tax	30
Income tax benefit	(7)		Income tax expense
Net of tax	$	23
Reclassification of realized loss on foreign currency translation to gain on sale of business	$	112	Gain on sale of business
Income tax benefit	—		Income tax expense
Net of tax	$	112

Nine Months Ended September 30, 2022	Decrease (Increase) in Net Income		Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Interest rate swaps	$	22	Interest expense
Income tax benefit	(5)		Income tax expense
Net of tax	$	17
Amortization of pension & post-retirement plans(1)
Net actuarial loss	$	99	Other (expense) income, net
Prior service credit	(3)		Other (expense) income, net
Total before tax	96
Income tax benefit	(24)		Income tax expense
Net of tax	$	72
Reclassification of realized loss on foreign currency translation to gain on sale of business	$	112	Gain on sale of business
Income tax benefit	—		Income tax expense
Net of tax	$	112

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(1)See Note 8—Employee Benefits for additional information on our net periodic benefit expense (income) related to our pension and post-retirement plans.

The tables below present further information about our reclassifications out of accumulated other comprehensive loss by component for the three and nine months ended September 30, 2021:

Three Months Ended September 30, 2021	Decrease (Increase) in Net Income		Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Interest rate swaps	$	21	Interest expense
Income tax expense	(5)		Income tax expense
Net of tax	$	16
Amortization of pension & post-retirement plans(1)
Net actuarial loss	$	108	Other (expense) income, net
Prior service cost	1		Other (expense) income, net
Total before tax	109
Income tax benefit	(27)		Income tax expense
Net of tax	$	82

Nine Months Ended September 30, 2021	Decrease (Increase) in Net Income		Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Interest rate swaps	$	62	Interest expense
Income tax benefit	(15)		Income tax expense
Net of tax	$	47
Amortization of pension & post-retirement plans(1)
Net actuarial loss	$	208	Other (expense) income, net
Prior service cost	4		Other (expense) income, net
Total before tax	212
Income tax benefit	(52)		Income tax expense
Net of tax	$	160

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(1)See Note 8—Employee Benefits for additional information on our net periodic benefit income related to our pension and post-retirement plans.