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Risk Management
 12 Months Ended
Dec. 31, 2024
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 $1.0 billion and $1.3 billion at December 31, 2024 and December 31, 2023, 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 Company's five largest net notional amounts of the positions to buy or sell foreign currency as of December 31, 2024 and the corresponding positions as of December 31, 2023:
 Notional Amount
Net Buy (Sell) by Currency20242023
Euro$150 $322 
Australian dollar(136)(140)
British pound124 252 
Canadian dollar70 76 
Chinese renminbi(48)(66)
 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, 2024, all of the counterparties had investment grade credit ratings. As of December 31, 2024, the credit risk with all derivative counterparties was approximately $10 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, 2024 and 2023:
 Fair Values of Derivative Instruments
December 31, 2024Other Current AssetsAccrued Liabilities
Derivatives designated as hedging instruments:
Foreign exchange contracts$7 $— 
Derivatives not designated as hedging instruments:
Foreign exchange contracts$3 $9 
Equity swap contracts$— $1 
Total derivatives$10 $10 
 
 Fair Values of Derivative Instruments
December 31, 2023Other Current AssetsAccrued Liabilities
Derivatives designated as hedging instruments:
Foreign exchange contracts$1 $3 
Treasury rate lock— 12 
Derivatives not designated as hedging instruments:
Foreign exchange contracts121 
Equity swap contracts1— 
Total derivatives$14 $16 
The following table summarizes the effect of derivatives on the Company's consolidated financial statements for the years ended December 31, 2024, 2023 and 2022: 
Financial Statement Location
202420232022
Derivatives designated as hedging instruments:
Foreign exchange contractsAccumulated other comprehensive income (loss)$9 $(4)$12 
Forward points recognizedOther income (expense)2 3 2 
Treasury rate lock settlementAccumulated other comprehensive income (loss)4 (12)— 
Amortization of treasury rate lockOther income (expense)(1)— — 
Derivatives not designated as hedging instruments:
Foreign exchange contractsOther income (expense)$(19)$20 $(61)
Equity swap contractsSelling, general and administrative expenses3 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 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, 2024, the Company had €100 million of net investment hedges in certain Euro functional subsidiaries and £50 million of net investment hedges in certain British pound functional subsidiaries.
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 is amortized on a straight line basis and recognized through interest expense within Other income (expense) in the Consolidated Statement of Operations.
Equity Swap Contracts
The Company uses 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 Consolidated Statements of Operations. The notional amount of these contracts as of December 31, 2024 was $19 million.
Treasury Rate Lock
In 2023, the Company entered into treasury rate lock agreements which locked in the interest rate for $200 million in future debt issuances. The treasury rate lock agreements were designated and qualified as cash flow hedges. During the year ended December 31, 2024, the Company issued $900 million of 5.4% senior notes due 2034 (the "2034 notes"). The treasury rate lock agreements were terminated upon the issuance of the 2034 notes for a net settlement loss of $8 million. The accumulated loss recorded in Accumulated Other Comprehensive Income (AOCI) will be reclassified to Interest expense, net on a straight-line basis over the 10-year term of the 2034 notes.