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Derivatives and Hedging Instruments (Tables) | 6 Months Ended
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Jun. 30, 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 and six months ended June 30, 2024 and 2023 was as follows (in millions):
Amount of gain or (loss) recognized in accumulated other comprehensive income:
|  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  |  | 2024 |  | 2023 |  | 2024 |  | 2023
Foreign currency debt |  | $ | 5 |  |  | $ | (15) |  |  | $ | 34 |  |  | $ | (39) |
Foreign currency forward contracts (included component) (1) |  | 8 |  |  | — |  |  | 35 |  |  | (1) |
Foreign currency forward contracts (excluded component) (2) |  | — |  |  | (1) |  |  | — |  |  | — |
Cross-currency interest rate swaps (included component) (1) |  | 8 |  |  | 19 |  |  | 84 |  |  | (21) |
Cross-currency interest rate swaps (excluded component) (3) |  | 3 |  |  | (27) |  |  | 1 |  |  | (3) |
Total |  | $ | 24 |  |  | $ | (24) |  |  | $ | 154 |  |  | $ | (64) |
Amount of gain or (loss) recognized in earnings: |  |  |  |
|  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
| Location of gain (loss) |  | 2024 |  | 2023 |  | 2024 |  | 2023
Foreign currency forward contracts (excluded component) (2) | Interest expense |  | $ | 3 |  |  | $ | 1 |  |  | 5 |  |  | 1 |
Cross-currency interest rate swaps (excluded component) (3) | Interest expense |  | 7 |  |  | 12 |  |  | 15 |  |  | 24 |
Total |  |  | $ | 10 |  |  | $ | 13 |  |  | $ | 20 |  |  | $ | 25 |
(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 and six months ended June 30, 2024 and 2023 was as follows (in millions):
Amount of gain or (loss) recognized in accumulated other comprehensive income:
|  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  |  | 2024 |  | 2023 |  | 2024 |  | 2023
Foreign currency forward and option contracts (included component) (1) |  | $ | 2 |  |  | $ | (5) |  |  | $ | 29 |  |  | $ | (18) |
Cross-currency interest rate swaps |  | 10 |  |  | 1 |  |  | 8 |  |  | (1) |
Interest rate locks |  | — |  |  | — |  |  | 1 |  |  | (4) |
Total |  |  | $ | 12 |  |  | $ | (4) |  |  | $ | 38 |  |  | $ | (23) |
Amount of gain or (loss) recognized in earnings: |  |  |  |  |  |  |  |
|  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
| Location of gain (loss) |  | 2024 |  | 2023 |  | 2024 |  | 2023
Foreign currency forward contracts (2) | Revenues |  | $ | 8 |  |  | $ | (6) |  |  | $ | 5 |  |  | $ | 6 |
Foreign currency forward contracts (2) | Costs and operating expenses |  | (4) |  |  | 7 |  |  | (2) |  |  | 4 |
Cross-currency interest rate swaps (excluded component) (2)(3) | Interest expense |  | 1 |  |  | — |  |  | 1 |  |  | — |
Cross-currency interest rate swaps (included component) (1) | Other income (expense) |  | 10 |  |  | 9 |  |  | 7 |  |  | 16 |
Total |  |  | $ | 15 |  |  | $ | 10 |  |  | $ | 11 |  |  | $ | 26 |
(1)Included component represents foreign exchange spot rates. (2)Reclassified from accumulated other comprehensive income. (3)Excluded component represents cross-currency basis spread and interest 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 June 30, |  | Six Months Ended June 30,
| Location of gain (loss) |  | 2024 |  | 2023 |  | 2024 |  | 2023
Foreign currency forward contracts | Other income (expense) |  | $ | (10) |  |  | $ | (7) |  |  | $ | 66 |  |  | $ | 4 |
Cross-currency interest rate swaps | Other income (expense) |  | 10 |  |  | — |  |  | 10 |  |  | — |
Total |  |  | $ | — |  |  | $ | (7) |  |  | $ | 76 |  |  | $ | 4 |
Schedule of Derivative Instruments Recognized in the Company's Condensed Consolidated Balance Sheets | The notional amounts of our outstanding derivative instruments as of June 30, 2024 and December 31, 2023 were as follows (in millions):
| June 30, 2024 |  | December 31, 2023
Designated as hedging instruments: |  |  |
Net investment hedges |  |  |
Foreign currency forward contracts | $ | 725 |  |  | $ | 887 |
Cross-currency interest rate swaps | 2,355 |  |  | 3,121 |
Cash flow hedges |  |  |
Foreign currency forward and option contracts | 1,224 |  |  | 1,154 |
Cross-currency interest rate swaps | 1,030 |  |  | 280 |
Total designated as hedging | 5,334 |  |  | 5,442 |
Not designated as hedging instruments: |  |  |
Foreign currency forward contracts | 4,220 |  |  | 3,053 |
Cross-currency interest rate swaps | 1,426 |  |  | 1,061 |
Total not designated as hedging | 5,646 |  |  | 4,114 |
Total Derivatives | $ | 10,980 |  |  | $ | 9,556 |
The following table presents the fair value of derivative instruments recognized in our condensed consolidated balance sheets, excluding accrued interest, as of June 30, 2024 and December 31, 2023 (in millions):
| June 30, 2024 |  | December 31, 2023
| Assets (1) |  | Liabilities (2) |  | Assets (1) |  | Liabilities (2)
Designated as hedging instruments: |  |  |  |  |  |  |
Net investment hedges |  |  |  |  |  |  |
Foreign currency forward contracts | $ | 11 |  |  | $ | 4 |  |  | $ | 3 |  |  | $ | 17 |
Cross-currency interest rate swaps | 192 |  |  | — |  |  | 132 |  |  | — |
Cash flow hedges |  |  |  |  |  |  |
Foreign currency forward and option contracts | 18 |  |  | 1 |  |  | 2 |  |  | 14 |
Cross-currency interest rate swaps | 50 |  |  | — |  |  | 36 |  |  | — |
Total designated as hedging | 271 |  |  | 5 |  |  | 173 |  |  | 31 |
Not designated as hedging instruments: |  |  |  |  |  |  |
Foreign currency forward contracts | 22 |  |  | 25 |  |  | 4 |  |  | 70 |
Cross-currency interest rate swaps | 134 |  |  | 29 |  |  | 80 |  |  | — |
Total not designated as hedging | 156 |  |  | 54 |  |  | 84 |  |  | 70 |
Total Derivatives | $ | 427 |  |  | $ | 59 |  |  | $ | 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 June 30, 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
June 30, 2024 |  |  |  |  |  |  |  |  |
Derivative assets | $ | 444 |  |  | $ | — |  |  | $ | 444 |  |  | $ | (58) |  |  | $ | 386 |
Derivative liabilities | 68 |  |  | — |  |  | 68 |  |  | (58) |  |  | 10 |
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 June 30, 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
June 30, 2024 |  |  |  |  |  |  |  |  |
Derivative assets | $ | 444 |  |  | $ | — |  |  | $ | 444 |  |  | $ | (58) |  |  | $ | 386 |
Derivative liabilities | 68 |  |  | — |  |  | 68 |  |  | (58) |  |  | 10 |
December 31, 2023 |  |  |  |  |  |  |  |  |
Derivative assets | $ | 282 |  |  | $ | — |  |  | $ | 282 |  |  | $ | (56) |  |  | $ | 226 |
Derivative liabilities | 112 |  |  | — |  |  | 112 |  |  | (56) |  |  | 56 |

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