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Derivatives and Hedging Instruments (Tables) | 3 Months Ended
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Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Net Investment Hedges | The effect of net investment hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023 was as follows (in millions):
Amount of gain or (loss) recognized in accumulated other comprehensive income:
|  |  | Three Months Ended March 31, |  |
|  |  | 2024 |  | 2023 |  |  |  |
Foreign currency debt |  | $ | 29 |  |  | $ | (24) |  |  |  |  |
Foreign currency forward contracts (included component) (1) |  | 27 |  |  | (1) |  |  |  |  |
Foreign currency forward contracts (excluded component) (2) |  | — |  |  | 1 |  |  |  |  |
Cross-currency interest rate swaps (included component) (1) |  | 76 |  |  | (40) |  |  |  |  |
Cross-currency interest rate swaps (excluded component) (3) |  | (2) |  |  | 24 |  |  |  |  |
Total |  | $ | 130 |  |  | $ | (40) |  |  |  |  |
Amount of gain or (loss) recognized in earnings: |  |  |  |
|  |  | Three Months Ended March 31, |  |
| Location of gain (loss) |  | 2024 |  | 2023 |  |  |  |
Foreign currency forward contracts (excluded component) (2) | Interest expense |  | $ | 2 |  |  | $ | — |  |  |  |  |
Cross-currency interest rate swaps (excluded component) (3) | Interest expense |  | 8 |  |  | 12 |  |  |  |  |
Total |  |  | $ | 10 |  |  | $ | 12 |  |  |  |  |
(1)Included component represents foreign exchange spot rates. (2)Excluded component represents foreign currency forward points. (3)Excluded component represents cross-currency basis spread and interest rates.
Schedule of Cash Flow Hedges | The effect of cash flow hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023 was as follows (in millions):
Amount of gain or (loss) recognized in accumulated other comprehensive income:
|  |  | Three Months Ended March 31, |  |
|  |  | 2024 |  | 2023 |  |  |  |
Foreign currency forward and option contracts (included component) (1) |  | $ | 27 |  |  | $ | (13) |  |  |  |  |
Cross-currency interest rate swaps |  | (2) |  |  | (2) |  |  |  |  |
Interest rate locks |  | 1 |  |  | (4) |  |  |  |  |
Total |  | $ | 26 |  |  | $ | (19) |  |  |  |  |
Amount of gain or (loss) reclassified from accumulated other comprehensive income to income:
|  |  | Three Months Ended March 31, |  |
| Location of gain (loss) |  | 2024 |  | 2023 |  |  |  |
Foreign currency forward contracts | Revenues |  | $ | (3) |  |  | $ | 12 |  |  |  |  |
Foreign currency forward contracts | Costs and operating expenses |  | 2 |  |  | (3) |  |  |  |  |
Total |  |  | $ | (1) |  |  | $ | 9 |  |  |  |  |
(1)Included component represents foreign exchange spot rates.
Schedule of Derivatives not Designated as Hedging Instruments in the Company's Condensed Consolidated Statements of Operations | The following table presents the effect of derivatives not designated as hedging instruments in our condensed consolidated statements of operations (in millions):
Amount of gain or (loss) recognized in earnings: |  |  |  |  |  |  |  |
|  |  | Three Months Ended March 31, |  |
| Location of gain (loss) |  | 2024 |  | 2023 |  |  |  |
Foreign currency forward contracts | Other income (expense) |  | 76 |  |  | 11 |  |  |  |  |
Total |  |  | $ | 76 |  |  | $ | 11 |  |  |  |  |
Schedule of Derivative Instruments Recognized in the Company's Condensed Consolidated Balance Sheets | The notional amounts of our outstanding derivative instruments as of March 31, 2024 and December 31, 2023 were as follows (in millions):
| March 31, 2024 |  | December 31, 2023
Designated as hedging instruments: |  |  |
Net investment hedges |  |  |
Foreign currency forward contracts | $ | 1,004 |  |  | $ | 887 |
Cross-currency interest rate swaps | 3,121 |  |  | 3,121 |
Cash flow hedges |  |  |
Foreign currency forward and option contracts | 1,187 |  |  | 1,154 |
Cross-currency interest rate swaps | 280 |  |  | 280 |
Total designated as hedging | 5,592 |  |  | 5,442 |
Not designated as hedging instruments: |  |  |
Foreign currency forward contracts | 2,736 |  |  | 3,053 |
Cross-currency interest rate swaps | 661 |  |  | 1,061 |
Total not designated as hedging | 3,397 |  |  | 4,114 |
Total Derivatives | $ | 8,989 |  |  | $ | 9,556 |
The following table presents the fair value of derivative instruments recognized in our condensed consolidated balance sheets, excluding accrued interest, as of March 31, 2024 and December 31, 2023 (in millions):
| March 31, 2024 |  | December 31, 2023
| Assets (1) |  | Liabilities (2) |  | Assets (1) |  | Liabilities (2)
Designated as hedging instruments: |  |  |  |  |  |  |
Net investment hedges |  |  |  |  |  |  |
Foreign currency forward contracts | $ | 19 |  |  | $ | 2 |  |  | $ | 3 |  |  | $ | 17 |
Cross-currency interest rate swaps | 209 |  |  | — |  |  | 132 |  |  | — |
Cash flow hedges |  |  |  |  |  |  |
Foreign currency forward and option contracts | 15 |  |  | 2 |  |  | 2 |  |  | 14 |
Cross-currency interest rate swaps | 33 |  |  | — |  |  | 36 |  |  | — |
Total designated as hedging | 276 |  |  | 4 |  |  | 173 |  |  | 31 |
Not designated as hedging instruments: |  |  |  |  |  |  |
Foreign currency forward contracts | 23 |  |  | 3 |  |  | 4 |  |  | 70 |
Cross-currency interest rate swaps | 79 |  |  | 13 |  |  | 80 |  |  | — |
Total not designated as hedging | 102 |  |  | 16 |  |  | 84 |  |  | 70 |
Total Derivatives | $ | 378 |  |  | $ | 20 |  |  | $ | 257 |  |  | $ | 101 |
(1)As presented in our condensed consolidated balance sheets within other current assets and other assets. (2)As presented in our condensed consolidated balance sheets within other current liabilities and other liabilities.
Schedule of Offsetting Derivative Assets and Liabilities | The following table presents information related to these offsetting arrangements, inclusive of accrued interest, as of March 31, 2024 and December 31, 2023 (in millions):
| Gross Amounts Offset in Condensed Consolidated Balance Sheets |  |  |  |
| Gross Amounts |  | Gross Amounts Offset in the Balance Sheet |  | Net Amounts |  | Gross Amounts not Offset in the Balance Sheet |  | Net
March 31, 2024 |  |  |  |  |  |  |  |  |
Derivative assets | $ | 394 |  |  | $ | — |  |  | $ | 394 |  |  | $ | (29) |  |  | $ | 365 |
Derivative liabilities | 31 |  |  | — |  |  | 31 |  |  | (29) |  |  | 2 |
December 31, 2023 |  |  |  |  |  |  |  |  |
Derivative assets | $ | 282 |  |  | $ | — |  |  | $ | 282 |  |  | $ | (56) |  |  | $ | 226 |
Derivative liabilities | 112 |  |  | — |  |  | 112 |  |  | (56) |  |  | 56 |
Schedule of Offsetting Derivative Assets and Liabilities | The following table presents information related to these offsetting arrangements, inclusive of accrued interest, as of March 31, 2024 and December 31, 2023 (in millions):
| Gross Amounts Offset in Condensed Consolidated Balance Sheets |  |  |  |
| Gross Amounts |  | Gross Amounts Offset in the Balance Sheet |  | Net Amounts |  | Gross Amounts not Offset in the Balance Sheet |  | Net
March 31, 2024 |  |  |  |  |  |  |  |  |
Derivative assets | $ | 394 |  |  | $ | — |  |  | $ | 394 |  |  | $ | (29) |  |  | $ | 365 |
Derivative liabilities | 31 |  |  | — |  |  | 31 |  |  | (29) |  |  | 2 |
December 31, 2023 |  |  |  |  |  |  |  |  |
Derivative assets | $ | 282 |  |  | $ | — |  |  | $ | 282 |  |  | $ | (56) |  |  | $ | 226 |
Derivative liabilities | 112 |  |  | — |  |  | 112 |  |  | (56) |  |  | 56 |

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