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FINANCIAL INSTRUMENTS | 12 Months Ended
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Dec. 31, 2020
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. During March 2020, the Company entered into a forward-starting interest rate swap agreement with a financial institution for a total notional amount of $25 million. Additionally, during May 2020, the Company entered into interest rate lock agreements with several financial institutions for a total notional amount of $275 million. The forward-starting interest rate swap agreement and the interest rate lock agreements were entered into in order 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 an anticipated issuance of debt and were accounted for as cash flow hedges. In connection with the issuance of the 2031 Senior Notes (see Note 13), these agreements were settled and the Company received net proceeds of $1 million. The net gain is deferred in stockholders' equity, net of taxes, as a component of accumulated other comprehensive loss, and is being 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 $1 million and $4 million as of December 31, 2020 and 2019, 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 $1 million. Interest Rate Derivatives – Fair Value Hedges As of December 31, 2019, the Company had various fixed-to-variable interest rate swap agreements outstanding with an aggregate notional amount of $1.2 billion, which were entered into in order to convert a portion of the Company's long-term debt into variable interest rate debt. In April 2020, the Company terminated these existing fixed-to-variable interest rate swap agreements and received proceeds of $40 million. Such amount was reflected as a basis adjustment to the hedged debt instruments and is being amortized as a reduction of interest expense, net over their remaining terms. As of December 31, 2020 and 2019, 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, 2020 |  | December 31, 2020 |  | December 31, 2019 |  | December 31, 2019
Long-term debt |  | $ | — |  |  | $ | 51 |  |  | $ | 1,186 |  |  | $ | (3) |
(a) As of December 31, 2020, the entire balance is associated with remaining unamortized hedging adjustments on discounted relationships. As of December 31, 2019, the balance includes $25 million of remaining unamortized hedging adjustments on discontinued relationships. The following table presents the effect of fair value hedge accounting on the consolidated statements of operations for the years ended December 31, 2020, 2019 and 2018, respectively:
|  |  | 2020 |  | 2019 |  | 2018
|  | 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 |  | $ | 76 |  |  | $ | 20 |  |  | $ | (8) |
Gain (loss) on fair value hedging relationships: |  |  |  |  |  |
Hedged items (Long-term debt) |  | $ | (68) |  |  | $ | (65) |  |  | $ | 4 |
Derivatives designated as hedging instruments |  | $ | 68 |  |  | $ | 65 |  |  | $ | (4) |
A summary of the fair values of derivative instruments in the consolidated balance sheet was as follows:
|  |  | December 31, 2019
|  |  |  |  | Balance Sheet Classification |  | Fair Value
Derivatives Designated as Hedging Instruments |  |  |  |  |  |  |
Fixed-to-variable interest rate swap agreements |  |  |  |  | Other liabilities |  | $ | 28 |

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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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