The Company is exposed to global market risks, including risks from changes in FX rates and changes in interest rates. Accordingly, the Company uses derivatives in certain instances to manage financial exposures that occur in the normal course of business. The Company does not hold or issue derivatives for speculative purposes.

The Company has entered into interest rate swaps to convert the fixed interest rate on certain of its long-term debt to a floating interest rate based on the SOFR. The purpose of these hedges is to mitigate the risk associated with changes in the fair value of the long-term debt, thus the Company has designated these swaps as fair value hedges. The fair value of the swaps is adjusted quarterly with a corresponding adjustment to the carrying value of the debt. The changes in the fair value of the swaps and the underlying hedged item generally offset and the net cash settlements on the swaps are recorded each period within interest expense, net in the Company’s consolidated statements of operations.

The following table summarizes the Company’s interest rate swaps designated as fair value hedges:


		Notional Amount
Hedged Item	Nature of Swap	As of December 31, 2024		As of December 31, 2023		Floating Interest Rate
2014 Senior Notes due 2044	Pay Floating/Receive Fixed	$	300	$	300	SOFR
2017 Senior Notes due 2028	Pay Floating/Receive Fixed	500		500		SOFR
2018 Senior Notes due 2029	Pay Floating/Receive Fixed	400		400		SOFR
2018 Senior Notes due 2048	Pay Floating/Receive Fixed	300		300		SOFR
2020 Senior Notes due 2025	Pay Floating/Receive Fixed	300		300		SOFR
2022 Senior Notes due 2052	Pay Floating/Receive Fixed	500		500		SOFR
2022 Senior Notes due 2032	Pay Floating/Receive Fixed	250		250		SOFR
Total		$	2,550	$	2,550

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 recorded		Amount of income (expense) recognized in the Consolidated Statements of Operations
		Year Ended December 31,
		2024		2023		2022
Interest expense, net		$	(237)	$	(251)	$	(231)
Description	Location on consolidated Statements of Operations
Net interest settlements and accruals on interest rate swaps	Interest expense, net	$	(96)	$	(89)	$	(8)
Fair value changes on interest rate swaps	Interest expense, net	$	14	$	56	$	(228)
Fair value changes on hedged debt	Interest expense, net	$	(14)	$	(56)	$	228

The Company has designated €500 million of the 2015 Senior Notes Due 2027 and €750 million of the 2019 Senior Notes due 2030 as net investment hedges to mitigate FX exposure related to a portion of the Company’s euro net investment in certain foreign subsidiaries against changes in euro/USD exchange rates. These hedges are designated as accounting hedges under the applicable sections of ASC Topic 815 and will end upon the repayment of the notes in 2027 and 2030, respectively, unless terminated early at the discretion of the Company.

The Company enters into cross-currency swaps to mitigate FX exposure related to a portion of the Company’s euro net investment in certain foreign subsidiaries against changes in euro/USD exchange rates. The following tables provide information on the cross-currency swaps designated as net investment hedges under ASC Topic 815:


December 31, 2024
	Pay			Receive
Nature of Swap	Notional Amount		Weighted Average Interest Rate	Notional Amount		Weighted Average Interest Rate
Pay Fixed/Receive Fixed	€	965	2.91%	$	1,014	4.41%
Pay Floating/Receive Floating	2,138		Based on ESTR	2,250		Based on SOFR
Total	€	3,103		$	3,264


December 31, 2023
	Pay			Receive
Nature of Swap	Notional Amount		Weighted Average Interest Rate	Notional Amount		Weighted Average Interest Rate
Pay Fixed/Receive Fixed	€	765	3.67%	$	800	5.25%
Pay Floating/Receive Floating	2,138		Based on ESTR	2,250		Based on SOFR
Total	€	2,903		$	3,050

As of December 31, 2024, these hedges will expire and the notional amounts will be settled as follows unless terminated early at the discretion of the Company:


Year Ending December 31,	Notional Amount (Pay)		Notional Amount (Receive)
2026	€	450	$	500
2027	531		550
2028	588		600
2029	573		614
2031	481		500
2032	480		500
Total	€	3,103	$	3,264

The following table provides information on the gains (losses) on the Company’s net investment and cash flow hedges:


	Amount of Gain (Loss) Recognized in AOCL on Derivative, net of Tax						Amount of Gain (Loss) Reclassified from AOCL into Income, net of tax						Gain (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)
Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships	Year Ended December 31,						Year Ended December 31,						Year Ended December 31,
	2024		2023		2022		2024		2023		2022		2024		2023		2022
Cross currency swaps	$	157	$	(97)	$	99	$	—	$	—	$	—	$	47	$	54	$	56
Long-term debt	65		(35)		65		—		—		—		—		—		—
Total net investment hedges	$	222	$	(132)	$	164	$	—	$	—	$	—	$	47	$	54	$	56
Derivatives in Cash Flow Hedging Relationships
Cross currency swaps	$	—	$	—	$	—	$	—	$	1	$	—	$	—	$	—	$	—
Interest rate contracts	—		—		—		(2)		(2)		(2)		—		—		—
Total cash flow hedges	$	—	$	—	$	—	$	(2)	$	(1)	$	(2)	$	—	$	—	$	—
Total	$	222	$	(132)	$	164	$	(2)	$	(1)	$	(2)	$	47	$	54	$	56

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
	December 31, 2024		December 31, 2023
Net investment hedges
Cross currency swaps	$	178	$	21
FX forwards	29		29
Long-term debt	68		3
Total net investment hedges	275		53
Cash flow hedges
Interest rate contracts	(43)		(45)
Cross currency swaps	1		1
Total cash flow hedges	(42)		(44)
Total net gain in AOCL	$	233	$	9

The Company also enters into foreign exchange forward contracts to mitigate the change in fair value on certain assets and liabilities denominated in currencies other than a subsidiary’s functional currency. These forward contracts are not designated as accounting hedges under the applicable sections of ASC Topic 815. Accordingly, changes in the fair value of these contracts are recognized immediately in other non-operating income, net in the Company’s consolidated statements of operations along with the FX gain or loss recognized on the assets and liabilities denominated in a currency other than the subsidiary’s functional currency. These contracts have expiration dates at various times through July 2025.

The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards:


	December 31, 2024				December 31, 2023
Notional amount of currency pair(1):	Sell		Buy		Sell		Buy
Contracts to sell USD for GBP	$	604	£	470	$	513	£	407
Contracts to sell USD for JPY	$	29	¥	4,000	$	14	¥	2,000
Contracts to sell USD for CAD	$	35	C$	50	$	147	C$	200
Contracts to sell USD for SGD	$	45	S$	59	$	50	S$	67
Contracts to sell USD for EUR	$	—	€	—	$	60	€	55

Contracts to sell USD for INR	$	23	₹	1,900	$	23	₹	1,900

Contracts to sell EUR for USD	€	12	$	12	€	—	$	—
Contracts to sell USD for AUD	$	—	A$	—	$	5	A$	8
Contracts to sell CAD for USD	C$	—	$	—	C$	25	$	19

The Company has entered into total return swaps to mitigate market-driven changes in the value of certain liabilities associated with the Company's deferred compensation plans. The fair value of these swaps at December 31, 2024 and related gains in the year ended December 31, 2024 were not material. The notional amount of the total return swaps at December 31, 2024 and December 31, 2023 was $66 million and $58 million, respectively.

The following table summarizes the impact to the consolidated statements of operations relating to the gains (losses) on the Company’s derivatives which are not designated as hedging instruments:


		Year Ended December 31,
Derivatives not designated as accounting hedges	Location on Consolidated Statements of Operations	2024		2023		2022
FX forwards	Other non-operating income, net	$	(24)	$	15	$	(72)
Total return swaps	Operating expense	$	5	$	2	$	—
Total return swaps	SG&A expense	$	1	$	1	$	—

The table below shows the classification between assets and liabilities on the Company’s consolidated balance sheets for the fair value of the derivative instruments as well as the carrying value of its non-derivative debt instruments designated and qualifying as net investment hedges:


	Derivative and Non-derivative Instruments
	Consolidated Balance Sheet Location	December 31, 2024		December 31, 2023
Assets:
Derivatives designated as accounting hedges:
Cross currency swaps designated as net investment hedges	Other assets	$	58	$	3

Total derivatives designated as accounting hedges		58		3
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilities	Other current assets	—		13
Total assets		$	58	$	16
Liabilities:
Derivatives designated as accounting hedges:

Interest rate swaps designated as fair value hedges	Accounts payable and accrued liabilities	$	3	$	—
Cross currency swaps designated as net investment hedges	Other liabilities	26		183
Interest rate swaps designated as fair value hedges	Other liabilities	166		183
Total derivatives designated as accounting hedges		195		366
Non-derivatives designated as accounting hedges:
Long-term debt designated as net investment hedge	Long-term debt	1,294		1,381
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilities	Accounts payable and accrued liabilities	21		—
Total liabilities		$	1,510	$	1,747