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Risk Management
 9 Months Ended
Sep. 30, 2023
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 $1.3 billion and $1.1 billion for periods ended September 30, 2023 and December 31, 2022, respectively. 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 five largest net notional amounts of the positions to buy or sell foreign currency as of September 30, 2023, and the corresponding positions as of December 31, 2022: 
 Notional Amount
Net Buy (Sell) by CurrencySeptember 30, 2023December 31, 2022
British pound$262 $290 
Euro250 185 
Australian dollar(124)(130)
Canadian dollar75 — 
Chinese renminbi(68)(61)
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 September 30, 2023, all of the counterparties had investment grade credit ratings. As of September 30, 2023, the Company had $10 million of exposure to aggregate credit risk with all counterparties.
Derivative Financial Instruments
The following tables summarize the fair values and locations in the Condensed Consolidated Balance Sheets of all derivative financial instruments held by the Company as of September 30, 2023 and December 31, 2022:
 Fair Values of Derivative Instruments
September 30, 2023Other Current AssetsAccrued Liabilities
Derivatives designated as hedging instruments:
Foreign exchange contracts$9 $— 
Derivatives not designated as hedging instruments:
Foreign exchange contracts1 19 
Equity swap contracts— 1 
Total derivatives$10 $20 
 Fair Values of Derivative Instruments
December 31, 2022Other Current AssetsAccrued Liabilities
Derivatives designated as hedging instruments:
Foreign exchange contracts$— $5 
Derivatives not designated as hedging instruments:
Foreign exchange contracts15 — 
Total derivatives$15 $5 
The following table summarizes the effect of derivatives on the Company's condensed consolidated financial statements for the three and nine months ended September 30, 2023 and October 1, 2022:
 Financial Statement LocationThree Months EndedNine Months Ended
September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Derivatives designated as hedging instruments:
Foreign exchange contractsAccumulated other
comprehensive gain (loss)		$9 $12 $5 $24 
Forward points recognizedOther income (expense)1 1 2 1 
Derivatives not designated as hedging instruments:
Foreign exchange contractsOther income (expense)(26)(54)(9)(111)
Equity swap contractsSelling, general and administrative expenses(1)— (1)— 

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 investments 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 September 30, 2023, the Company had €100 million of net investment hedges in certain Euro functional subsidiaries and £70 million of net investment hedges in a British pound functional subsidiary.
The Company excludes the difference between the spot rate and the forward rate of the forward contract from its assessment of hedge effectiveness. The effect of the forward points recognized will be amortized on a straight line basis and recognized through interest expense within Other income (expense) in the Condensed Consolidated Statement of Operations.
Equity Swap Contracts
During the three months ended September 30, 2023, the Company entered into equity swap contracts which serve as economic hedges against volatility within the equity markets, impacting the Company's deferred compensation plan obligations. These contracts are not designated as hedges for accounting purposes. Unrealized gains and losses on these contracts are included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. The notional amount of these contracts as of September 30, 2023 was $15 million.