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Accumulated Other Comprehensive Loss
 6 Months Ended
Jun. 30, 2023
Equity [Abstract]  
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss
Changes in accumulated other comprehensive loss by component, net of income taxes, consisted of the following:
(In millions)DerivativesForeign
Currency
Translation		Pension PlansTotal
Three Months Ended June 30, 2023
Balance at March 31, 2023$(95)$(939)$(20)$(1,054)
Other comprehensive income before reclassifications1 150 — 151 
Amounts reclassified from accumulated other comprehensive loss3 — — 3 
Net current-period other comprehensive income4 150 — 154 
Balance at June 30, 2023$(91)$(789)$(20)$(900)
Three Months Ended June 30, 2022
Balance at March 31, 2022$(105)$(572)$37 $(640)
Other comprehensive loss before reclassifications(6)(361)(2)(369)
Amounts reclassified from accumulated other comprehensive loss4 — — 4 
Net current-period other comprehensive loss(2)(361)(2)(365)
Balance at June 30, 2022$(107)$(933)$35 $(1,005)
Six Months Ended June 30, 2023
Balance at December 31, 2022$(103)$(1,064)$(22)$(1,189)
Other comprehensive income before reclassifications6 275 2 283 
Amounts reclassified from accumulated other comprehensive loss6 — — 6 
Net current-period other comprehensive income12 275 2 289 
Balance at June 30, 2023$(91)$(789)$(20)$(900)
Six Months Ended June 30, 2022
Balance at December 31, 2021$(107)$(676)$38 $(745)
Other comprehensive loss before reclassifications(7)(257)(3)(267)
Amounts reclassified from accumulated other comprehensive loss7 — — 7 
Net current-period other comprehensive loss— (257)(3)(260)
Balance at June 30, 2022$(107)$(933)$35 $(1,005)
Cash Flow Hedges
The Company maintains forward exchange contracts, designated as cash flow hedges, to hedge foreign currency exposure to the Indian Rupee (see Note 7). The notional amount of these derivatives was $369 million and $346 million at June 30, 2023 and December 31, 2022, respectively. Based on the amounts recorded in accumulated other comprehensive loss at June 30, 2023, the Company estimates that it will recognize gains of approximately $3 million in cost of processing and services during the next twelve months as foreign exchange forward contracts settle.
The Company previously entered into treasury lock agreements (“Treasury Locks”), designated as cash flow hedges to manage exposure to fluctuations in benchmark interest rates in anticipation of the issuance of fixed rate debt in connection with the acquisition and refinancing of certain indebtedness of First Data Corporation (“First Data”) and its subsidiaries. In 2019, concurrent with the issuance of U.S dollar-denominated senior notes, the Treasury Locks were settled resulting in a loss, net of income taxes, and recorded in accumulated other comprehensive loss that is being amortized to earnings over the terms of the originally forecasted interest payments. The unamortized balance recorded in accumulated other comprehensive loss related to the Treasury Locks was $123 million and $130 million at June 30, 2023 and December 31, 2022, respectively. Based on the
amounts recorded in accumulated other comprehensive loss at June 30, 2023, the Company estimates that it will recognize approximately $15 million in net interest expense during the next twelve months related to settled interest rate hedge contracts.
Net Investment Hedges
To reduce exposure to changes in the value of the Company’s net investments in certain of its foreign currency-denominated subsidiaries due to changes in foreign currency exchange rates, the Company uses fixed-to-fixed cross-currency rate swap contracts and foreign currency-denominated debt as economic hedges of its net investments in such foreign currency-denominated subsidiaries. At June 30, 2023, aggregate notional cross-currency rate swaps of 400 million Euros were designated as net investment hedges to hedge a portion of the Company’s net investment in certain subsidiaries whose functional currency is the Euro. The Company has designated certain of its Euro- and British Pound-denominated senior notes and Euro commercial paper notes as net investment hedges to hedge a portion of its net investment in certain subsidiaries whose functional currencies are the Euro and the British Pound.
On May 24, 2023, in conjunction with the public offering and issuance of the 2031 Euro Senior Notes (see Note 9), the Company elected to designate such notes as a net investment hedge and simultaneously de-designated its existing net investment hedge election on its 0.375% Euro-denominated senior notes due in July 2023. To mitigate foreign currency exchange exposure on the 0.375% Euro-denominated senior notes, the Company entered into a forward exchange contract with matching critical terms (see Note 7).
The following table outlines the terms of the Company’s Euro cross-currency rate swap contracts at June 30, 2023:
Effective Date of ContractMaturity Date of ContractNotional Amount (EUR)Fixed Rate Paid (EUR)Fixed Rate Received (USD)
September 1, 2022June 1, 202580 million2.096 %3.85 %
September 15, 2022July 1, 202680 million1.635 %3.20 %
October 6, 2022June 1, 202580 million1.922 %3.85 %
October 27, 2022July 1, 202680 million1.458 %3.20 %
November 10, 2022June 1, 202580 million1.816 %3.85 %
Foreign currency transaction gains or losses on the qualifying net investment hedge instruments are recorded as foreign currency translation within other comprehensive income (loss) in the consolidated statements of comprehensive income and will remain in accumulated other comprehensive loss in the consolidated balance sheets until the sale or complete liquidation of the underlying foreign subsidiaries.
Foreign currency transaction (losses) gains, net of income tax, related to net investment hedges that were recorded in other comprehensive income (loss) in the consolidated statements of comprehensive income were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(In millions)2023202220232022
Cross-currency rate swap contracts
$(5)$— $(7)$— 
Foreign currency-denominated debt
(50)181 (114)248 
The Company recorded income tax impacts of $18 million and $(61) million during the three months ended June 30, 2023 and 2022, respectively, and $40 million and $(83) million during the six months ended June 30, 2023 and 2022, respectively, in other comprehensive income (loss) from the translation of foreign currency-denominated senior notes, commercial paper notes and cross-currency rate swap contracts.