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Derivatives and Hedging | 9 Months Ended
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Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives and Hedging | Derivatives and Hedging The Company is exposed to market risks, including changes in foreign currency exchange rates and interest rates. To manage the risk related to these exposures, the Company enters into various derivative instruments that reduce these risks by creating offsetting exposures. The Company does not enter into derivative transactions for trading or speculative purposes. Foreign Exchange Risk Management The Company is exposed to foreign exchange risk when it earns revenues, pays expenses, enters into monetary intercompany transfers or other transactions denominated in a currency that differs from its functional currency. The Company uses foreign exchange derivatives, typically forward contracts, options and cross currency swaps, to reduce its overall exposure to the effects of currency fluctuations on cash flows. These exposures are hedged, on average, for less than two years. These derivatives are accounted for as hedges, and changes in fair value are recorded each period in Other comprehensive income (loss) in the Condensed Consolidated Statements of Comprehensive Income. The Company also uses foreign exchange derivatives, typically forward contracts and options, to economically hedge the currency exposure of the Company’s global liquidity profile, including monetary assets or liabilities that are denominated in a non-functional currency of an entity, typically on a rolling 90-day basis, but may be for up to one year in the future. These derivatives are not accounted for as hedges, and changes in fair value are recorded each period in Other income (expense) in the Condensed Consolidated Statements of Income. The notional and fair values of derivative instruments are as follows (in millions):
| Notional Amount |  | Net Amount of Derivative Assets Presented in the Statements of Financial Position (1) |  | Net Amount of Derivative Liabilities Presented in the Statements of Financial Position (2)
| September 30, 2024 |  | December 31, 2023 |  | September 30, 2024 |  | December 31, 2023 |  | September 30, 2024 |  | December 31, 2023
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |
Accounted for as hedges | $ | 668 |  |  | $ | 1,724 |  |  | $ | 45 |  |  | $ | 34 |  |  | $ | — |  |  | $ | 2 |
Not accounted for as hedges (3) | 434 |  |  | 382 |  |  | — |  |  | 2 |  |  | 1 |  |  | 1 |
Total | $ | 1,102 |  |  | $ | 2,106 |  |  | $ | 45 |  |  | $ | 36 |  |  | $ | 1 |  |  | $ | 3 |
(1)Included within Other current assets ($27 million at September 30, 2024 and $17 million at December 31, 2023) or Other non-current assets ($18 million at September 30, 2024 and $19 million at December 31, 2023). (2)Included within Other current liabilities ($1 million at September 30, 2024 and $3 million at December 31, 2023). (3)These contracts typically are for 90-day durations and executed close to the last day of the most recent reporting month, thereby resulting in nominal fair values at the balance sheet date. The amounts of derivative gains (losses) recognized in the Condensed Consolidated Financial Statements are as follows (in millions):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Gain (loss) recognized in Accumulated other comprehensive loss |  | $ | 13 |  |  | $ | (8) |  |  | $ | 114 |  |  | $ | 1 |
The amounts of derivative gains (losses) reclassified from Accumulated other comprehensive loss to the Condensed Consolidated Statements of Income are as follows (in millions):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Gain (loss) recognized in Total revenue |  | $ | 2 |  |  | $ | (1) |  |  | $ | — |  |  | $ | (7) |
Interest expense |  | $ | 1 |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |
Total |  | $ | 3 |  |  | $ | (1) |  |  | $ | 1 |  |  | $ | (7) |
The Company estimates that approximately $14 million of pretax gains currently included within Accumulated other comprehensive loss will be reclassified into earnings in the next twelve months. During the three and nine months ended September 30, 2024, the Company recorded gain of $9 million and $0 million, respectively, in Other income (expense) for foreign exchange derivatives not designated or qualifying as hedges. During the three and nine months ended September 30, 2023, the Company recorded a loss of $13 million and a gain of $24 million, respectively, in Other income (expense) for foreign exchange derivatives not designated or qualifying as hedges.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
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