Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss by component, net of income taxes, consisted of the following:



(In millions)	Cash Flow Hedges			Foreign Currency Translation			Other			Total
Balance at December 31, 2017	$	(14	)	$	(38	)	$	(2	)	$	(54	)
Other comprehensive loss before reclassifications	(5		)	(6		)	—			(11		)
Amounts reclassified from accumulated other comprehensive loss	(1		)	—			—			(1		)
Net current-period other comprehensive loss	(6		)	(6		)	—			(12		)
Cumulative-effect adjustment of ASU 2017-12 adoption from retained earnings	3			—			—			3
Cumulative-effect adjustment of ASU 2018-02 adoption to retained earnings	(3		)	—			—			(3		)
Balance at June 30, 2018	$	(20	)	$	(44	)	$	(2	)	$	(66	)



(In millions)	Cash Flow Hedges			Foreign Currency Translation			Other			Total
Balance at December 31, 2016	$	(24	)	$	(50	)	$	(2	)	$	(76	)
Other comprehensive income before reclassifications	3			11			—			14
Amounts reclassified from accumulated other comprehensive loss	3			—			—			3
Net current-period other comprehensive income	6			11			—			17
Balance at June 30, 2017	$	(18	)	$	(39	)	$	(2	)	$	(59	)

Based on the amounts recorded in accumulated other comprehensive loss at June 30, 2018, the Company estimates that it will recognize approximately $6 million in interest expense during the next twelve months related to settled interest rate hedge contracts.

Derivatives are recorded in the consolidated balance sheets as either an asset or liability measured at fair value. For a derivative designated as a cash flow hedge, changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive loss with an offsetting adjustment to the basis of the item being hedged. Changes in fair value are then recognized in the consolidated statements of income when the hedged item affects earnings, reported within the same line as the hedged item. The Company’s policy is to enter into derivatives with creditworthy institutions and not to enter into such derivatives for speculative purposes.

The Company has entered into foreign currency forward exchange contracts, which have been designated as cash flow hedges, to hedge foreign currency exposure to the Indian Rupee. As of June 30, 2018, the notional amount of these derivatives was $162 million, and the fair value totaling $3 million is reported in accounts payable and accrued expenses in the consolidated balance sheet. As of December 31, 2017, the notional amount of these derivatives was $150 million, and the fair value totaling $8 million is reported in prepaid expenses and other current assets in the consolidated balance sheet. Based on the amounts recorded in accumulated other comprehensive loss at June 30, 2018, the Company estimates that it will recognize losses of approximately $2 million in cost of processing and services during the next twelve months as foreign currency forward exchange contracts settle.