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Risk Management
 12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Risk Management Risk Management
Foreign Currency Risk
The Company had outstanding foreign exchange contracts with notional amounts totaling $1.1 billion at each of December 31, 2022 and December 31, 2021. The Company does not believe these financial instruments should subject it to undue risk due to foreign exchange movements because gains and losses on these contracts should generally offset gains and losses on the underlying assets, liabilities and transactions.
The following table shows the Company's five largest net notional amounts of the positions to buy or sell foreign currency as of December 31, 2022 and the corresponding positions as of December 31, 2021:
 Notional Amount
Net Buy (Sell) by Currency20222021
British pound$290 $128 
Euro185 164 
Australian dollar(130)(76)
Chinese renminbi(61)(89)
Brazilian real(44)(23)
Net Investment Hedges
The Company uses foreign exchange forward contracts to hedge against the effect of the British pound and the Euro exchange rate fluctuations against the U.S. dollar on a portion of its net investment in certain European operations. The Company recognizes changes in the fair value of the net investment hedges as a component of foreign currency translation adjustments within other comprehensive income to offset a portion of the change in translated value of the net investments being hedged, until the investments are sold or liquidated. As of December 31, 2022, the Company had €100 million of net investment hedges in certain Euro functional subsidiaries and £45 million of net investment hedges in certain British pound functional subsidiaries.
 Counterparty Risk
The use of derivative financial instruments exposes the Company to counterparty credit risk in the event of non-performance by counterparties. However, the Company’s risk is limited to the fair value of the instruments when the derivative is in an asset position. The Company actively monitors its exposure to credit risk. As of December 31, 2022, all of the counterparties had investment grade credit ratings. As of December 31, 2022, the credit risk with all derivative counterparties was approximately $15 million.
Derivative Financial Instruments
The following tables summarize the fair values and location in the Consolidated Balance Sheet of all derivative financial instruments held by the Company at December 31, 2022 and 2021:
 Fair Values of Derivative Instruments
December 31, 2022Other Current AssetsAccrued Liabilities
Derivatives designated as hedging instruments:
Foreign exchange contracts$— $5 
Derivatives not designated as hedging instruments:
Foreign exchange contracts15$— 
Total derivatives$15 $5 
 
 Fair Values of Derivative Instruments
December 31, 2021Other Current AssetsAccrued Liabilities
Derivatives designated as hedging instruments:
Foreign exchange contracts$5 $— 
Derivatives not designated as hedging instruments:
Foreign exchange contracts25
Total derivatives$7 $5 
The following table summarizes the effect of derivatives on the Company's consolidated financial statements for the years ended December 31, 2022, 2021 and 2020: 
Financial Statement Location
Foreign Exchange Contracts202220212020
Effective portion of derivatives designatedAccumulated other comprehensive income (loss)$12 $13 $(7)
Derivatives not designated as hedging instrumentsOther income (expense)$(61)$(30)$25