Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2019

Accumulated Other Comprehensive Income (Loss)

4.	Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive loss are as follows (in millions):

				Derivative			Defined
	Currency			Financial			Benefit
	Translation			Instruments,			Plans,
	Adjustments			Net of Tax			Net of Tax			Total
Balance at December 31, 2018	$	(1,396	)	$	(14	)	$	(27	)	$	(1,437	)
Accumulated other comprehensive income (loss) before reclassifications		(80	)		(13	)		—			(93	)
Amounts reclassified from accumulated other comprehensive income (loss)		—			6			—			6
Balance at September 30, 2019	$	(1,476	)	$	(21	)	$	(27	)	$	(1,524	)

The components of amounts reclassified from accumulated other comprehensive income (loss) are as follows (in millions):

	Three Months Ended September 30,
	2019										2018
	Currency		Derivative			Defined					Currency		Derivative			Defined
	Translation		Financial			Benefit					Translation		Financial			Benefit
	Adjustments		Instruments			Plans		Total			Adjustments		Instruments			Plans		Total
Revenue	$	—	$	—		$	—	$	—		$	—	$	1		$	—	$	1
Cost of revenue		—		4			—		4			—		2			—		2
Other income (expense), net		—		—			—		—			6		—			—		6
Tax effect		—		(1	)		—		(1	)		—		(1	)		—		(1	)
	$	—	$	3		$	—	$	3		$	6	$	2		$	—	$	8

	Nine Months Ended September 30,
	2019										2018
	Currency		Derivative			Defined					Currency		Derivative			Defined
	Translation		Financial			Benefit					Translation		Financial			Benefit
	Adjustments		Instruments			Plans		Total			Adjustments		Instruments			Plans		Total
Revenue	$	—	$	1		$	—	$	1		$	—	$	—		$	—	$	—
Cost of revenue		—		7			—		7			—		(3	)		—		(3	)
Other income (expense), net		—		—			—		—			6		—			—		6
Tax effect		—		(2	)		—		(2	)		—		1			—		1
	$	—	$	6		$	—	$	6		$	6	$	(2	)	$	—	$	4

The Company’s reporting currency is the U.S. dollar. A majority of the Company’s international entities in which there is a substantial investment have the local currency as their functional currency. As a result, currency translation adjustments resulting from the process of translating the entities’ financial statements into the reporting currency are reported in other comprehensive income (loss). The Company recorded losses of $118 million and $80 million for the three and nine months ended September 30, 2019, respectively and losses of $32 million and $219 million for the three and nine months ended September 30, 2018, respectively.

The effect of changes in the fair values of derivatives designated as cash flow hedges are accumulated in other comprehensive income (loss), net of tax, until the underlying transactions are realized. The movement in other comprehensive income (loss) from period to period will be the result of the combination of changes in fair value of open derivatives and the outflow of other comprehensive income (loss) related to cumulative changes in the fair value of derivatives that have settled in the current period. The accumulated effect was other comprehensive loss of $14 million (net of tax of $4 million) and $7 million (net of tax of $2 million) for the three and nine months ended September 30, 2019, respectively. The accumulated effect was other comprehensive loss of $2 million (net of tax of $0 million) and $1 million (net of tax of $0 million) for the three and nine months ended September 30, 2018, respectively.