XML 63 R35.htm IDEA: XBRL DOCUMENT
v3.25.1

DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Impact of Derivative Financial Instruments | The following table summarizes the Company’s derivative financial instruments recorded on its consolidated balance sheets (in millions).
| March 31, 2025 |  | December 31, 2024
|  |  | Fair Value |  |  |  | Fair Value
| Notional |  | Prepaid expenses and other current assets |  | Other non- current assets |  | Accounts payable and accrued liabilities |  | Other non- current liabilities |  | Notional |  | Prepaid expenses and other current assets |  | Other non- current assets |  | Accounts payable and accrued liabilities |  | Other non- current liabilities
Cash flow hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange | $ | 2,557 |  |  | $ | 36 |  |  | $ | 25 |  |  | $ | 31 |  |  | $ | 21 |  |  | $ | 1,608 |  |  | $ | 47 |  |  | $ | 14 |  |  | $ | 25 |  |  | $ | 28 |
Net investment hedges: (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cross-currency swaps | 434 |  |  | 6 |  |  | — |  |  | — |  |  | 6 |  |  | 421 |  |  | 6 |  |  | — |  |  | — |  |  | 4 |
No hedging designation: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange | 944 |  |  | 16 |  |  | 6 |  |  | 13 |  |  | 108 |  |  | 951 |  |  | 18 |  |  | 7 |  |  | 14 |  |  | 122 |
Cross-currency swaps | 216 |  |  | 2 |  |  | — |  |  | — |  |  | 2 |  |  | 210 |  |  | 2 |  |  | — |  |  | — |  |  | 1 |
Interest rate swaps | 1,500 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total return swaps | 443 |  |  | — |  |  | — |  |  | 17 |  |  | — |  |  | 454 |  |  | — |  |  | — |  |  | 16 |  |  | — |
Total |  |  | $ | 61 |  |  | $ | 31 |  |  | $ | 61 |  |  | $ | 137 |  |  |  |  | $ | 73 |  |  | $ | 21 |  |  | $ | 55 |  |  | $ | 155 |
(a) Excludes €1,500 million of euro-denominated notes ($1,618 million and $1,558 million equivalent at March 31, 2025 and December 31, 2024, respectively) designated as a net investment hedge. (See Note 8.)
Schedule of Pre-Tax Impact of Derivatives Designated as Cash Flow Hedges | The following table presents the pre-tax impact of derivatives designated as cash flow hedges on income and other comprehensive loss (in millions).
|  | Three Months Ended March 31, |  |
|  | 2025 |  | 2024 |  |  |  |
Gains (losses) recognized in accumulated other comprehensive loss: |  |  |  |  |  |  |  |
Foreign exchange - derivative adjustments |  | $ | 14 |  |  | $ | 16 |  |  |  |  |
Gains (losses) reclassified into income from accumulated other comprehensive loss: |  |  |  |  |  |  |  |
Foreign exchange - distribution revenue |  | 4 |  |  | 2 |  |  |  |  |
Foreign exchange - costs of revenues |  | — |  |  | 11 |  |  |  |  |
Interest rate - interest expense, net |  | (1) |  |  | (1) |  |  |  |  |
Interest rate - other income (expense), net |  | 14 |  |  | — |  |  |  |  |
Schedule of Pre-Tax Impact of Derivatives Designated as Net Investment Hedges on Other Comprehensive Loss | The following table presents the pre-tax impact of derivatives designated as net investment hedges on other comprehensive loss (in millions). Other than amounts excluded from effectiveness testing, there were no other material gains (losses) reclassified from accumulated other comprehensive loss to income during the three months ended March 31, 2025 and 2024.
|  | Three Months Ended March 31,
|  | Amount of gain (loss) recognized in AOCI |  | Location of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) |  | Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing)
|  | 2025 |  | 2024 |  |  | 2025 |  | 2024
Cross currency swaps |  | $ | (4) |  |  | $ | 25 |  |  | Interest expense, net |  | $ | 3 |  |  | $ | 6 |
Euro-denominated notes (foreign denominated debt) |  | (60) |  |  | — |  |  | N/A |  | — |  |  | — |
Sterling notes (foreign denominated debt) |  | — |  |  | 4 |  |  | N/A |  | — |  |  | — |
Total |  | $ | (64) |  |  | $ | 29 |  |  |  |  | $ | 3 |  |  | $ | 6 |
Schedule of Pre-Tax Impact of Derivatives Not Designated as Hedges on Statements of Operations | The following table presents the pretax gains (losses) on derivatives not designated as hedges and recognized in selling, general and administrative expense and other income (expense), net in the consolidated statements of operations (in millions).
|  | Three Months Ended March 31, |  |
|  | 2025 |  | 2024 |  |  |  |
Interest rate swaps |  | $ | 1 |  |  | $ | 21 |  |  |  |  |
Total return swaps |  | (11) |  |  | 19 |  |  |  |  |
Total in selling, general and administrative expense |  | (10) |  |  | 40 |  |  |  |  |
Interest rate swaps |  | — |  |  | 2 |  |  |  |  |
Cross-currency swaps |  | (1) |  |  | — |  |  |  |  |
Foreign exchange derivatives |  | 9 |  |  | (8) |  |  |  |  |
Total in other income (expense), net |  | 8 |  |  | (6) |  |  |  |  |
Total |  | $ | (2) |  |  | $ | 34 |  |  |  |  |

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

X
- Definition Tabular disclosure of gain (loss) on derivative and nonderivative instruments designated and qualifying as cash flow hedge recorded in accumulated other comprehensive income (AOCI) and reclassified into earnings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4C + Details
Name: | us-gaap_ScheduleOfCashFlowHedgesIncludedInAccumulatedOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4B + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the effective portion of gains and losses on derivative instruments (and nonderivative instruments) designated and qualifying in net investment hedges recorded in accumulated other comprehensive income (loss) during the term of the hedging relationship and reclassified into earnings during the current period. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4CCC -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4CCC + Details
Name: | us-gaap_ScheduleOfNetInvestmentHedgesInAccumulatedOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative instrument not designated or qualifying as hedging instrument. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4C Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Section 50 -Paragraph 4CC -SubTopic 10 -Topic 815 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4CC + Details
Name: | us-gaap_ScheduleOfOtherDerivativesNotDesignatedAsHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration