Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2022

Accumulated Other Comprehensive Income (Loss)

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


				Derivative			Employee
	Currency			Financial			Benefit
	Translation			Instruments,			Plans,
	Adjustments			Net of Tax			Net of Tax			Total
Balance at December 31, 2021	$	(1,515	)	$	7		$	(38	)	$	(1,546	)
Accumulated other comprehensive income (loss) before reclassifications		(88	)		(34	)		(31	)		(153	)
Amounts reclassified from accumulated other comprehensive income (loss)		—			—			(1	)		(1	)
Balance at September 30, 2022	$	(1,603	)	$	(27	)	$	(70	)	$	(1,700	)

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


	Three Months Ended September 30,
	2022									2021
	Derivative			Defined						Derivative			Defined
	Financial			Benefit						Financial			Benefit
	Instruments			Plans			Total			Instruments			Plans		Total
Revenue	$	1		$	—		$	1		$	—		$	—	$	—
Cost of revenue		6			—			6			(3	)		—		(3	)
Selling, general, and administrative		—			(1	)		(1	)		—			—		—
Tax effect		(1	)		—			(1	)		1			—		1
	$	6		$	(1	)	$	5		$	(2	)	$	—	$	(2	)


	Nine Months Ended September 30,
	2022									2021
	Derivative			Defined						Derivative			Defined
	Financial			Benefit						Financial			Benefit
	Instruments			Plans			Total			Instruments			Plans		Total
Revenue	$	2		$	—		$	2		$	(1	)	$	—	$	(1	)
Cost of revenue		(2	)		—			(2	)		(6	)		—		(6	)
Selling, general, and administrative		—			(1	)		(1	)		—			—		—
Tax effect		—			—			—			2			—		2
	$	—		$	(1	)	$	(1	)	$	(5	)	$	—	$	(5	)

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 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 combination of: 1) changes in fair value of open derivatives of ($19) million and ($34) million during the three and nine months ended September 30, 2022; and, 2) the outflow of other comprehensive income (loss) related to cumulative changes in the fair value of derivatives that have settled in the current period were ($6) million during the three months ended September 30, 2022, and zero during the nine months ended September 30, 2022.

The Company offered a new benefit plan to employees during the third quarter of 2022, resulting in the recognition of prior service cost in accumulated other comprehensive loss during the three and nine months ended September 30, 2022.