XML 28 R19.htm IDEA: XBRL DOCUMENT
v3.23.2

Accumulated Other Comprehensive Loss | 6 Months Ended
--- | ---
Jun. 30, 2023
Equity [Abstract] |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component, net of income taxes, consisted of the following:
(In millions) | Derivatives |  | Foreign Currency Translation |  | Pension Plans |  | Total
Three Months Ended June 30, 2023 |  |  |  |  |  |  |
Balance at March 31, 2023 | $ | (95) |  |  | $ | (939) |  |  | $ | (20) |  |  | $ | (1,054) |
Other comprehensive income before reclassifications | 1 |  |  | 150 |  |  | — |  |  | 151 |
Amounts reclassified from accumulated other comprehensive loss | 3 |  |  | — |  |  | — |  |  | 3 |
Net current-period other comprehensive income | 4 |  |  | 150 |  |  | — |  |  | 154 |
Balance at June 30, 2023 | $ | (91) |  |  | $ | (789) |  |  | $ | (20) |  |  | $ | (900) |
Three Months Ended June 30, 2022 |  |  |  |  |  |  |
Balance at March 31, 2022 | $ | (105) |  |  | $ | (572) |  |  | $ | 37 |  |  | $ | (640) |
Other comprehensive loss before reclassifications | (6) |  |  | (361) |  |  | (2) |  |  | (369) |
Amounts reclassified from accumulated other comprehensive loss | 4 |  |  | — |  |  | — |  |  | 4 |
Net current-period other comprehensive loss | (2) |  |  | (361) |  |  | (2) |  |  | (365) |
Balance at June 30, 2022 | $ | (107) |  |  | $ | (933) |  |  | $ | 35 |  |  | $ | (1,005) |
Six Months Ended June 30, 2023 |  |  |  |  |  |  |
Balance at December 31, 2022 | $ | (103) |  |  | $ | (1,064) |  |  | $ | (22) |  |  | $ | (1,189) |
Other comprehensive income before reclassifications | 6 |  |  | 275 |  |  | 2 |  |  | 283 |
Amounts reclassified from accumulated other comprehensive loss | 6 |  |  | — |  |  | — |  |  | 6 |
Net current-period other comprehensive income | 12 |  |  | 275 |  |  | 2 |  |  | 289 |
Balance at June 30, 2023 | $ | (91) |  |  | $ | (789) |  |  | $ | (20) |  |  | $ | (900) |
Six Months Ended June 30, 2022 |  |  |  |  |  |  |
Balance at December 31, 2021 | $ | (107) |  |  | $ | (676) |  |  | $ | 38 |  |  | $ | (745) |
Other comprehensive loss before reclassifications | (7) |  |  | (257) |  |  | (3) |  |  | (267) |
Amounts reclassified from accumulated other comprehensive loss | 7 |  |  | — |  |  | — |  |  | 7 |
Net current-period other comprehensive loss | — |  |  | (257) |  |  | (3) |  |  | (260) |
Balance at June 30, 2022 | $ | (107) |  |  | $ | (933) |  |  | $ | 35 |  |  | $ | (1,005) |
Cash Flow Hedges The Company maintains forward exchange contracts, designated as cash flow hedges, to hedge foreign currency exposure to the Indian Rupee (see Note 7). The notional amount of these derivatives was $369 million and $346 million at June 30, 2023 and December 31, 2022, respectively. Based on the amounts recorded in accumulated other comprehensive loss at June 30, 2023, 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 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, and 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 $123 million and $130 million at June 30, 2023 and December 31, 2022, respectively. Based on the amounts recorded in accumulated other comprehensive loss at June 30, 2023, the Company estimates that it will recognize approximately $15 million in net interest expense during the next twelve months related to settled interest rate hedge contracts. Net Investment Hedges 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 fixed-to-fixed cross-currency rate swap contracts and foreign currency-denominated debt as economic hedges of its net investments in such foreign currency-denominated subsidiaries. At June 30, 2023, aggregate notional cross-currency rate swaps of 400 million Euros were designated as net investment hedges to hedge a portion of the Company’s net investment in certain subsidiaries whose functional currency is the Euro. The Company has designated certain of 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. On May 24, 2023, in conjunction with the public offering and issuance of the 2031 Euro Senior Notes (see Note 9), the Company elected to designate such notes as a net investment hedge and simultaneously de-designated its existing net investment hedge election on its 0.375% Euro-denominated senior notes due in July 2023. To mitigate foreign currency exchange exposure on the 0.375% Euro-denominated senior notes, the Company entered into a forward exchange contract with matching critical terms (see Note 7). The following table outlines the terms of the Company’s Euro cross-currency rate swap contracts at June 30, 2023:
Effective Date of Contract |  | Maturity Date of Contract |  | Notional Amount (EUR) |  | Fixed Rate Paid (EUR) |  | Fixed Rate Received (USD)
September 1, 2022 |  | June 1, 2025 |  | 80 | million |  | 2.096 | % |  | 3.85 | %
September 15, 2022 |  | July 1, 2026 |  | 80 | million |  | 1.635 | % |  | 3.20 | %
October 6, 2022 |  | June 1, 2025 |  | 80 | million |  | 1.922 | % |  | 3.85 | %
October 27, 2022 |  | July 1, 2026 |  | 80 | million |  | 1.458 | % |  | 3.20 | %
November 10, 2022 |  | June 1, 2025 |  | 80 | million |  | 1.816 | % |  | 3.85 | %
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. Foreign currency transaction (losses) gains, net of income tax, related to net investment hedges that were recorded in other comprehensive income (loss) in the consolidated statements of comprehensive income were as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(In millions) | 2023 |  | 2022 |  | 2023 |  | 2022
Cross-currency rate swap contracts | $ | (5) |  |  | $ | — |  |  | $ | (7) |  |  | $ | — |
Foreign currency-denominated debt | (50) |  |  | 181 |  |  | (114) |  |  | 248 |
The Company recorded income tax impacts of $18 million and $(61) million during the three months ended June 30, 2023 and 2022, respectively, and $40 million and $(83) million during the six months ended June 30, 2023 and 2022, respectively, in other comprehensive income (loss) from the translation of foreign currency-denominated senior notes, commercial paper notes and cross-currency rate swap contracts.

X
- Definition The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 220 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-04(19)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483586/944-220-S99-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 220 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03(21)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 220 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-04(23)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 220 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//220/tableOfContent + Details
Name: | us-gaap_ComprehensiveIncomeNoteTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_EquityAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration