Accounting for Derivative Instruments and Hedging Activities (Notes)

9 Months Ended

Sep. 30, 2023

Accounting for Derivative Instruments and Hedging Activities [Abstract]

Accounting for Derivative Instruments and Hedging Activities

Cross-currency derivative instruments are used to manage foreign exchange risk on the Sterling Notes by effectively converting £1.275 billion aggregate principal amount of fixed-rate British pound sterling denominated debt, including annual interest payments and the payment of principal at maturity, to fixed-rate U.S. dollar denominated debt. The fair value of the Company's cross-currency derivatives, which are classified within Level 2 of the valuation hierarchy, was $516 million and $570 million and is included in other long-term liabilities on its consolidated balance sheets as of September 30, 2023 and December 31, 2022, respectively.

The effect of financial instruments are recorded in other income (expenses), net in the consolidated statements of operations and consisted of the following.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Change in fair value of cross-currency derivative instruments	$	6	$	(322)	$	54	$	(482)
Foreign currency remeasurement of Sterling Notes to U.S. dollars	64		129		(14)		304
Gain (loss) on financial instruments, net	$	70	$	(193)	$	40	$	(178)