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Accounting for Derivative Instruments and Hedging Activities (Notes)

6 Months Ended

Jun. 30, 2026

Accounting for Derivative Instruments and Hedging Activities [Abstract]
 

Accounting for Derivative Instruments and Hedging Activities
Accounting for Derivative Instruments and Hedging Activities Cross-currency derivative instruments are used to manage foreign exchange risk on the Sterling Notes by effectively converting £1.275 billion aggregate principal amount of fixed-rate British pound sterling denominated debt, including annual interest payments and the payment of principal at maturity, to fixed-rate U.S. dollar denominated debt. The fair value of the Company's cross-currency derivatives, which are classified within Level 2 of the valuation hierarchy, was $442 million and $406 million and is included in other long-term liabilities on its consolidated balance sheets as of June 30, 2026 and December 31, 2025, respectively.

The effect of financial instruments are recorded in other income (expenses), net in the consolidated statements of operations and consisted of the following.

Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Change in fair value of cross-currency derivative instruments
$ 41  $ 124  $ (35) $ 111 
Foreign currency remeasurement of Sterling Notes to U.S. dollars
(4) (104) 27  (156)
Gain (loss) on financial instruments, net $ 37  $ 20  $ (8) $ (45)

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- Definition Accounting for Derivative Instruments and Hedging Activities [Abstract]

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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.

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