Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2025

4. Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive 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, 2024	$	(1,569	)	$	(10	)	$	(46	)	$	(1,625	)
Accumulated other comprehensive income before reclassifications		84			5			—			89
Amounts reclassified from accumulated other comprehensive loss		5			4			—			9
Balance at March 31, 2025	$	(1,480	)	$	(1	)	$	(46	)	$	(1,527	)

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


	Three Months Ended March 31,
	2025											2024
		Currency		Derivative			Employee					Currency		Derivative		Employee
		Translation		Financial			Benefit					Translation		Financial		Benefit
		Adjustments		Instruments			Plans		Total			Adjustments		Instruments		Plans		Total
Revenue		$	—	$	2		$	—	$	2		$	—	$	1	$	—	$	1
Cost of revenue			—		3			—		3			—		1		—		1
Selling, general and administrative			5		—			—		5			—		—		—		—
Tax effect			—		(1	)		—		(1	)		—		—		—		—
		$	5	$	4		$	—	$	9		$	—	$	2	$	—	$	2

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 loss, net of tax, until the underlying transactions are realized. The movement in other comprehensive loss from period to period will be the combination of: 1) changes in fair value of open derivatives of $5 million during the three months ended March 31, 2025; and, 2) the outflow of other comprehensive loss related to cumulative changes in the fair value of derivatives that have settled in the current period, which were $4 million the three months ended March 31, 2025.