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FINANCIAL INSTRUMENTS | 12 Months Ended
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Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Interest Rate Derivatives – Cash Flow Hedges From time to time, the Company has entered into various interest rate lock agreements and forward-starting interest rate swap agreements to hedge part of the Company's interest rate exposure associated with the variability in future cash flows attributable to changes in interest rates. In February 2019, the Company entered into interest rate lock agreements with several financial institutions for a total notional amount of $250 million, which were accounted for as cash flow hedges. These agreements were entered into to hedge a portion of the Company's interest rate exposure associated with variability in future cash flows attributable to changes in the ten-year treasury rates related to the anticipated issuance of debt during 2019. In connection with the issuance of the 2029 Senior Notes, these agreements were settled and the Company paid $1 million. These losses are deferred in stockholders' equity, net of taxes, as a component of accumulated other comprehensive loss, and amortized as an adjustment to interest expense, net over the term of the 2029 Senior Notes. During the third and fourth quarters of 2019, the Company entered into forward-starting interest rate swap agreements with several financial institutions for a total notional amount of $400 million, which were accounted for as cash flow hedges. The swap agreements were entered into to hedge a portion of the Company's interest rate exposure associated with variability in future cash flows attributable to changes in interest rates over a ten-year period related to the anticipated issuance of debt. In connection with the issuance of the 2030 Senior Notes, these agreements were settled and the Company received $6 million. These gains are deferred in stockholders' equity, net of taxes, as a component of accumulated other comprehensive loss, and amortized as an adjustment to interest expense, net over a ten-year period. The total net loss, net of taxes, recognized in accumulated other comprehensive loss, related to the Company's cash flow hedges was $4 million and $9 million as of December 31, 2019 and 2018, respectively. The net amount of deferred losses on cash flow hedges that is expected to be reclassified from accumulated other comprehensive loss into interest expense, net within the next twelve months is $2 million. Interest Rate Derivatives – Fair Value Hedges The Company maintains various fixed-to-variable interest rate swap agreements to convert a portion of the Company's long-term debt into variable interest rate debt. A summary of the notional amounts of these interest rate swap agreements as of December 31, 2019 and 2018 was as follows:
|  | Notional Amount
Debt Instrument |  | 2019 |  | 2018
4.25% Senior Notes due April 2024 |  | $ | 250 |  |  | $ | 250 |
3.50% Senior Notes due March 2025 |  | 600 |  |  | 600 |
3.45% Senior Notes due June 2026 |  | 350 |  |  | 350 |
|  | $ | 1,200 |  |  | $ | 1,200 |
The fixed-to-variable interest rate swap agreements in the table above have variable interest rates ranging from one-month LIBOR plus 2.2% to one-month LIBOR plus 3.0%. As of December 31, 2019 and 2018, the following amounts were recorded on the consolidated balance sheets related to cumulative basis adjustments for fair value hedges included in the carrying amount of long-term debt:
|  |  | Carrying Amount of Hedged Long-Term Debt |  | Hedge Accounting Basis Adjustment (a) |  | Carrying Amount of Hedged Long-Term Debt |  | Hedge Accounting Basis Adjustment (a)
Balance Sheet Classification |  | December 31, 2019 |  | December 31, 2019 |  | December 31, 2018 |  | December 31, 2018
Long-term debt |  | $ | 1,186 |  |  | $ | (3 | ) |  | $ | 1,125 |  |  | $ | (53 | )
(a) The balance includes $25 million and $40 million of remaining unamortized hedging adjustment on a discontinued relationship as of December 31, 2019 and 2018, respectively. The following table presents the effect of fair value hedge accounting on the consolidated statements of operations for the years ended December 31, 2019, 2018 and 2017, respectively:
|  |  | Year Ended December 31,
|  |  | 2019 |  | 2018 |  | 2017
|  | Other income (expense), net |  | Other income (expense), net |  | Other income (expense), net
Total for line item in which the effects of fair value hedges are recorded |  | $ | 20 |  |  | $ | (8 | ) |  | $ | 16 |
Gain (loss) on fair value hedging relationships: |  |  |  |  |  |
Hedged items (Long-term debt) |  | $ | (65 | ) |  | $ | 4 |  |  | $ | 1 |
Derivatives designated as hedging instruments |  | $ | 65 |  |  | $ | (4 | ) |  | $ | (1 | )
A summary of the fair values of derivative instruments in the consolidated balance sheets was as follows:
| December 31, 2019 |  | December 31, 2018
| Balance Sheet Classification |  | Fair Value |  | Balance Sheet Classification |  | Fair Value
Derivatives Designated as Hedging Instruments |  |  |  |  |  |  |  |  |
Fix-to-variable interest rate swap agreements | Other liabilities |  | $ | 28 |  |  | Other liabilities |  | $ | 93 |

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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