Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2022

Changes in accumulated other comprehensive loss by component, net of income taxes, consisted of the following:



	Three Months Ended March 31, 2022
(In millions)	Cash Flow Hedges		Foreign Currency Translation		Pension Plans		Total
Balance at December 31, 2021	$	(107)	$	(676)	$	38	$	(745)
Other comprehensive income (loss) before reclassifications	(1)		104		(1)		102
Amounts reclassified from accumulated other comprehensive loss	3		—		—		3
Net current-period other comprehensive income (loss)	2		104		(1)		105
Balance at March 31, 2022	$	(105)	$	(572)	$	37	$	(640)



	Three Months Ended March 31, 2021
(In millions)	Cash Flow Hedges		Foreign Currency Translation		Pension Plans		Total
Balance at December 31, 2020	$	(121)	$	(254)	$	(12)	$	(387)
Other comprehensive income (loss) before reclassifications	1		(153)		1		(151)
Amounts reclassified from accumulated other comprehensive loss	2		—		—		2
Net current-period other comprehensive income (loss)	3		(153)		1		(149)



Balance at March 31, 2021	$	(118)	$	(407)	$	(11)	$	(536)

The Company has entered into forward exchange contracts, which have been designated as cash flow hedges, to hedge foreign currency exposure to the Indian Rupee. The notional amount of these derivatives was $317 million and $341 million, and the fair value totaling $4 million and $6 million is reported primarily within prepaid expenses and other current assets in the consolidated balance sheets at March 31, 2022 and December 31, 2021, respectively. Based on the amounts recorded in accumulated other comprehensive loss at March 31, 2022, the Company estimates that it will recognize gains of approximately $3 million in cost of processing and services during the next twelve months as foreign exchange forward contracts settle.

The Company previously entered into treasury lock agreements (“Treasury Locks”), designated as cash flow hedges to manage exposure to fluctuations in benchmark interest rates in anticipation of the issuance of fixed rate debt in connection with the acquisition and refinancing of certain indebtedness of First Data Corporation (“First Data”) and its subsidiaries. In June 2019, concurrent with the issuance of U.S dollar-denominated senior notes, the Treasury Locks were settled resulting in a loss, net of income taxes, recorded in accumulated other comprehensive loss that is being amortized to earnings over the terms of the originally forecasted interest payments. The unamortized balance recorded in accumulated other comprehensive loss related to the Treasury Locks was $142 million and $145 million at March 31, 2022 and December 31, 2021, respectively. Based on the amounts recorded in accumulated other comprehensive loss at March 31, 2022, the Company estimates that it will recognize approximately $18 million in interest expense, net during the next twelve months related to settled interest rate hedge contracts.

To reduce exposure to changes in the value of the Company’s net investments in certain of its foreign currency-denominated subsidiaries due to changes in foreign currency exchange rates, the Company uses its foreign currency-denominated debt as an economic hedge of its net investments in such foreign currency-denominated subsidiaries. The Company has designated its Euro- and British Pound-denominated senior notes and Euro commercial paper notes as net investment hedges to hedge a portion of its net investment in certain subsidiaries whose functional currencies are the Euro and the British Pound. Accordingly, foreign currency transaction gains or losses on the qualifying net investment hedge instruments are recorded as foreign currency translation within other comprehensive income (loss) in the consolidated statements of comprehensive income and will remain in accumulated other comprehensive loss in the consolidated balance sheets until the sale or complete liquidation of the underlying foreign subsidiaries. The Company recorded foreign currency translation gains of $67 million, net of income tax provision of $22 million, during the three months ended March 31, 2022, and $32 million during the three months ended March 31, 2021, in other comprehensive income (loss) from the translation of foreign currency-denominated senior notes and commercial paper notes.